Defense Inventory: Services Generally Have Reduced Excess Inventory, but Additional Actions Are Needed
Abstract
The Army, Navy, and Air Force are responsible for about $78 billion of DOD s $98 billion in secondary item inventory, such as spare parts needed to maintain military equipment. GAO identified DOD supply chain management as a high-risk area due in part to ineffective and inefficient inventory management practices that have contributed to high levels of excess inventory relative to total inventory. DOD established goals to reduce the percentages of both onhand and on-order excess inventory. GAO was asked to review DOD's inventory management practices. This report assesses the extent to which the services have (1) reduced on-hand excess inventory consistent with DOD goals, (2) reduced on-order excess inventory consistent with DOD goals, (3) balanced the timely availability of spare parts with supply chain costs in their inventory management metrics, and (4) implemented and monitored key improvement efforts. GAO analyzed inventory data from September 2009 through March 2014; evaluated the services inventory processes; and interviewed service and OSD officials.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2015
- Accession Number
- ADA616109
Entities
Organizations
- United States Government Accountability Office