Supply Chain Management: DOD Could More Efficiently Use Its Distribution Centers
[Technical Report, Congressional Report]
United States Government Accountability Office
Pagination or Media Count:
In fiscal year 2015, DLA generated 23 billion in revenues from supply chain management sales to the military departments and other customers, such as federal agencies. These sales included commodities and distribution services provided through the Defense-wide Working Capital Fund, a revolving fund. Senate Report 114-255 and House Report 114-537 included provisions for GAO to evaluate DLAs costs to provide commodities and services using the Defense-wide Working Capital Fund. This report identifies trends in the costs and annual prices that DLA has charged for commodities and distribution services and evaluates the extent to which DOD has taken steps to more efficiently use its network of U.S. distribution centers. GAO analyzed the most currently available DLA cost data, estimated and actual revenue, and prices for commodities and distribution services since fiscal year 2009 reviewed DOD documentation and interviewed knowledgeable DOD officials. GAO recommends that DOD assess and direct the implementation of actions, as appropriate, that can be taken using existing authorities to close, realign, or dispose of existing infrastructure to more efficiently use the departments network of U.S. distribution centers. DOD concurred with the recommendation.
- Logistics, Military Facilities and Supplies
- Administration and Management
- Economics and Cost Analysis