Defense Inventory: Actions Underway to Implement Improvement Plan, but Steps Needed to Enhance Efforts
Abstract
GAO has identified supply chain management as a high-risk area due in part to ineffective and inefficient inventory management practices that have caused DoD to accumulate billions of dollars worth of unneeded inventory. DoD reported that as of September 2010 it had $8.4 billion worth of on-hand excess inventory, categorized for potential reuse or disposal, and $940 million worth of on-order excess inventory, already purchased but likely to be excess due to changes in requirements. Under the National Defense Authorization Act for Fiscal Year 2010, GAO is required to assess DoD's implementation of the "Comprehensive Inventory Management Improvement Plan" (Plan) DoD submitted to Congress. GAO's objectives were to determine the extent to which DoD has accomplished the following: (1) established and achieved targets for reducing excess inventory in the Plan, (2) made progress in implementing the overall Plan, (3) developed metrics to track progress in improving inventory management, and (4) identified and realized any cost savings or avoidance. GAO reviewed relevant data, assessed DoD's actions through January 1, 2012, and interviewed officials implementing the Plan. GAO recommends that DoD periodically reexamine its targets for on-hand and on-order excess inventory. It also recommends that DoD establish a set of metrics that include standardized definitions and calculations that can be employed to monitor its inventory management practices. DoD concurs with GAO's recommendations.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2012
- Accession Number
- ADA559402
Entities
People
- Charlie Perdue
- Dave Hubbell
- Edward W. Anderson Jr.
- Elizabeth Curda
- Greg Pugnetti
- John Bumgarner
- Michael Silver
- Michael Willems
- Suzanne Wren
- Zina D. Merritt
Organizations
- United States Government Accountability Office