Defense Inventory: Defense Logistics Agency Needs to Expand on Efforts to More Effectively Manage Spare Parts
Abstract
The Defense Logistics Agency (DLA) procures and manages large supplies of spare parts to keep military equipment ready and operating. At a time when U.S. military forces and equipment are in high demand and the nation faces long-term fiscal challenges, it is critical that DLA ensure that the warfighter is supplied with the right items at the right time and exercise good stewardship over the billions of dollars invested in its inventories. GAO has identified supply chain management as a high-risk area due in part to high levels of inventory beyond what is needed to support requirements and problems in accurately forecasting demand for spare parts. GAO's objectives were as follows: (1) determine the extent to which DLA's inventory of spare parts reflects the amount needed to support requirements; and (2) identify causes, if applicable, for DLA's having spare parts inventory that does not align with requirements. GAO analyzed DLA inventory data for fiscal years 2006 through 2008. GAO is making recommendations on the seven factors contributing to mismatches between inventory levels of spare parts and requirements. Among other things, DLA should develop an action plan for addressing demand planning issues, and DoD should work with DLA to define goals and metrics for assessing and tracking the cost-efficiency of inventory management. DoD concurred with GAO's recommendations.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2010
- Accession Number
- ADA522622
Entities
People
- Elke Kolodinski ;steve Pruitt
- Jack R. Edwards
- Lionel Cooper
- Minette Richardson
- Qahira El'amin ;foster Kerrison
- Thomas Gosling
Organizations
- United States Government Accountability Office