Defense Inventory: Actions Needed to Improve the Defense Logistics Agency's Inventory Management : Government Accountability Office (GAO) , June , 2014
Defense Inventory: Actions Needed to Improve the Defense Logistics Agency's Inventory Management : Government Accountability Office (GAO) , June , 2014
From the report: "The Defense Logistics Agency (DLA) developed and met goals for reducing onhand inventory and on-order excess inventory (i.e., already purchased items that may be excess due to subsequent changes in the services’ requirements) and has made progress towards its goals for reducing backorders (shortages of spare parts), but challenges remain. DLA disposed of $4 billion in items for a net reduction of $2.5 billion to its on-hand inventory after continued replenishments to achieve its fiscal year 2013 goal of $11.7 billion. DLA used a risk-based approach to identify items to be disposed, resulting, for example, in a reduction of about $657 million in items with no demand in 5 years. Also, DLA has reduced on-order excess inventory from 6.7 percent of the total value of on-order inventory in 2011 to 5.6 percent in 2013, which is progress toward the Department of Defense’s (DOD) 4 percent goal by the end of fiscal year 2016. DLA has also reduced backorders by nearly 30 percent through monthly reviews. However, some challenges remain."
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