DoD Supply Depot Consolidation: Preliminary Estimate of Savings

Abstract

This report presents the results of an initial first-order assessment of the magnitude of savings associated with DoD-wide depot consolidation based on the latest information available and current system concept. Gross operational savings of $142 million to $260 million per year were identified, assuming that the consolidated depot system eventually will operate an current Defense Logistics Agency (DLA) unit costs. Moving to a common software system, the Defense Distribution System (DDS), nets an additional $25 million to $43 million in yearly savings. Through greater utilization of DLA's Guaranteed Traffic Program, an additional $6 million in annual saving can be realized. Total recurring savings equal $173 million to $309 million per year. In addition, greater resource utilization due to depot consolidation eliminates the need for $342 million in planned military construction through FY 95. On the cost side, implementation of the DDS will require a one-time expenditure of $74 million, with and annual equipment maintenance cost of $2 million.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Oct 01, 1990
Accession Number
ADA242130

Entities

People

  • David E. Bertrand
  • Joseph L. Fanelli

Organizations

  • Defense Logistics Agency

Tags

Communities of Interest

  • Energy and Power Technologies
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Air Force Facilities
  • Communication Systems
  • Construction
  • Control Systems
  • Cost Estimates
  • Databases
  • Department Of Defense
  • Economic Analysis
  • Labor
  • Logistics
  • Maintenance
  • Maintenance Costs
  • Military Equipment
  • Standards
  • Supply Depots
  • Transportation

Readers

  • Logistics and Supply Chain Management.
  • Mathematics or Statistics