DOD's High-Risk Areas. Progress Made Implementing Supply Chain Management Recommendations, but Full Extent of Improvement Unknown
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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DODs success in improving supply chain management is closely linked with its overall defense business transformation efforts and completion of a comprehensive, integrated logistics strategy. Our prior reviews and recommendations have addressed business management problems that adversely affect the economy, efficiency, and effectiveness of DOD s operations, and that have resulted in a lack of adequate accountability across several of DOD s major business areas. We have concluded that progress in DOD s overall approach to business transformation identified as a high-risk area in 2005 is needed to confront other high-risk areas, including supply chain management. We have made a number of recommendations to address defense business transformation, including strengthening the management of DOD s business systems modernization through the adoption of enterprise architecture and investment management best practices. In response, DOD has taken several actions intended to advance transformation, such as establishing governance structures like the Business Transformation Agency and developing an Enterprise Transition Plan aligned with its business enterprise architecture. As a separate effort, DOD has been developing a strategy to guide logistics programs and initiatives across the department. Called the To Be logistics roadmap, this strategy would identify the scope of logistics problems and capability gaps to be addressed and include specific performance goals, programs, milestones, resources, and metrics to guide improvements in supply chain management and other areas of DOD logistics. DOD has not established a target date for completing the To Be logistics roadmap. According to DOD officials, its completion is pending the results of the department s ongoing test of new concepts for managing logistics capabilities. Initial results of this test are expected to be available in the spring of 2007.
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