Procurement Leadtime - The Forgotten Factor.

In the past several years, DoD wholesale procurement leadtimes have increased significantly. This leadtime growth, which is in marked contrast to the private sector over the same period, has driven DoD leadtime obligational requirements above 20 billion, increased on-hand inventory levels, decreased forecasting accuracy, reduced the ability of the DoD inventory management system to react to demand, technological, or operational changes, and increased the liklihood of material shortages and excesses. This report recommends a DoD-wide program to improve leadtime management and to reduce procurement leadtimes. The integrated, multi-phase program proposed includes restoring the credibility of leadtime forecasts used to determine material requirements, active consideration of leadtime in spares buys, implementation of new procurement techniques and strategies to source and buy spare parts, and development of a more effective interface between the inventory management and procurement functions. Author