DOD Supply Chain Management

DOD operates a vast and complex supply chain network consisting of processes and activities to purchase, produce, and deliver materiel—including ammunition, spare parts, fuel, food, water, clothing, personal equipment, and other items—to forces that are highly dispersed and mobile. The fundamental premise of supply chain management is the operation of a continuous, unbroken, comprehensive, and all-inclusive logistics process, from initial customer order for materiel or services to the ultimate satisfaction of the customer's requirements. DOD supply chain management (originally known as inventory management) has been on GAO's high-risk list since 1990, and our recent work has identified continuing weaknesses. As a result, we have continued to designate DOD supply chain management as a high-risk area in 2009.

Highlights of GAO-09-271 (PDF)

• While DOD undertook a massive logistics effort to support Operation Iraqi Freedom, in many instances the supply chain failed to respond quickly enough to meet the needs of modern warfare. DOD had shortages of critical items due to systemic deficiencies that included inaccurate and inadequately funded Army war reserve requirements, inaccurate supply forecasts, insufficient and delayed funding, delayed acquisition, and ineffective distribution.

  Highlights of GAO-05-275 (PDF)

• DOD has initiatives under way to address weaknesses in supply chain management including key focus areas such as requirements forecasting, materiel distribution, and asset visibility. However, the long-term time frames for many of the initiatives present challenges to the department in sustaining progress toward substantially completing their implementation. Moreover, DOD lacks performance measures for many individual initiatives, limiting DOD's ability to demonstrate results achieved.

  Highlights of GAO-07-1064T (PDF), Highlights of GAO-05-775 (PDF), Highlights of GAO-07-234 (PDF)

• DOD has lacked a comprehensive, integrated, and departmentwide strategy to guide logistics programs and initiatives. Such a strategy could portray where DOD is headed in the logistics area and how it will get there, enable stakeholders to monitor progress, and institute a continuous assessment process that links ongoing capability development, program reviews, and budgeting. A new logistics road map issued in 2008 lacks key information needed for it to serve as a more useful tool for guiding and tracking logistics improvements.

  Highlights of GAO-07-234 (PDF), Highlights of GAO-09-150 (PDF)

• The military services have experienced difficulties estimating lead times to acquire spare parts for equipment and weapon systems. Inventory management practices at the Air Force, the Navy, and the Army have resulted in levels of inventory excess to requirements.

  Highlights of GAO-09-103 (PDF), Highlights of GAO-09-199 (PDF), Highlights of GAO-07-232 (PDF), Highlights of GAO-07-281 (PDF)

• DOD has not instituted a coordinated management approach to improving distribution and supply support for joint military operations. Specific deficiencies in its management approach include a lack of specific goals and strategies, accountability for achieving results, and outcome-oriented performance measures. Furthermore, the diffused organization of DOD's logistics operations, including separate funding and management of resources and systems, complicates DOD's ability to adopt a coordinated management approach to developing and implementing joint theater logistics capabilities.

  Highlights of GAO-07-807 (PDF)

^ Back to topWhat Needs to Be Done

DOD needs to continue to make improvements in key focus areas, such as requirements forecasting, asset visibility, and materiel distribution. For example, DOD needs to:

• incorporate additional information and elements into its logistics road map that are necessary for it to serve as a comprehensive, integrated strategy to guide and track supply chain improvements;

  Highlights of GAO-09-15 (PDF)

• develop and implement a coordinated and comprehensive management approach to guide and oversee efforts across the department to improve distribution and supply support for U.S. forces in a joint theater; and

  Highlights of GAO-07-807 (PDF)

• develop, implement, and monitor outcome-oriented performance and cost metrics for supply chain management initiatives.

  Highlights of GAO-07-234 (PDF)

^ Back to topKey Reports

Defense Logistics

DOD's High-Risk Areas

Defense Logistics

DOD's High-Risk Areas