Accession Number:

ADA522622

Title:

Defense Inventory: Defense Logistics Agency Needs to Expand on Efforts to More Effectively Manage Spare Parts

Descriptive Note:

Congressional rept.

Corporate Author:

GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC

Report Date:

2010-05-01

Pagination or Media Count:

61.0

Abstract:

The Defense Logistics Agency DLA procures and manages large supplies of spare parts to keep military equipment ready and operating. At a time when U.S. military forces and equipment are in high demand and the nation faces long-term fiscal challenges, it is critical that DLA ensure that the warfighter is supplied with the right items at the right time and exercise good stewardship over the billions of dollars invested in its inventories. GAO has identified supply chain management as a high-risk area due in part to high levels of inventory beyond what is needed to support requirements and problems in accurately forecasting demand for spare parts. GAOs objectives were as follows 1 determine the extent to which DLAs inventory of spare parts reflects the amount needed to support requirements and 2 identify causes, if applicable, for DLAs having spare parts inventory that does not align with requirements. GAO analyzed DLA inventory data for fiscal years 2006 through 2008. GAO is making recommendations on the seven factors contributing to mismatches between inventory levels of spare parts and requirements. Among other things, DLA should develop an action plan for addressing demand planning issues, and DoD should work with DLA to define goals and metrics for assessing and tracking the cost-efficiency of inventory management. DoD concurred with GAOs recommendations.

Subject Categories:

  • Administration and Management
  • Military Forces and Organizations
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE