Inventory Management: Greater Use of Best Practices Could Reduce DOD's Logistics Costs

Pursuant to a congressional request, GAO discussed the Department of Defense's (DOD) use of innovative business practices to improve inventory management and the opportunities GAO sees for further application of best practices to DOD's operations, focusing on: (1) the success DOD has had in using prime-vendor-type programs for medical, food, and clothing items; (2) the feasibility of using prime vendor systems for hardware items (such as bearings, valves, and bolts); and (3) recently introduced legislation that pertains to improving DOD's inventory management practices.