Defense Inventory: Further Analysis and Enhanced Metrics Could Improve Service Supply and Depot Operations
U.S. Government Accountability Office Washington United States
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The military services have, to varying degrees, transferred retail supply, storage, and distribution functions at their depot-level industrial sites to the Defense Logistics Agency DLA and achieved some efficiencies, but have not fully assessed the costs and benefits of transferring more retail functions to DLA at Army and Marine Corps depots and Navy shipyards. Specifically, Air Force Air Logistics Complexes ALC and Navy Fleet Readiness Centers FRC transferred all retail supply, storage, and distribution functions to DLA over the course of several years. For example, according to officials and GAOs assessment, these changes have led to a number of benefits, including a 20 percent reduction in on-hand inventory and a 10 percent reduction in backorders at the Air Force ALCs over a 5-year period see figure for examples of benefits.