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Defense Inventory: Improved Management Framework Needed to Guide Army Best Practice Initiatives

NSIAD-99-217 Published: Sep 14, 1999. Publicly Released: Sep 14, 1999.
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Highlights

Pursuant to a legislative requirement, GAO evaluated the Army's schedule for implementing best commercial inventory practices for the acquisition and distribution of secondary inventory items, focusing on: (1) the extent to which that schedule responds to the provisions of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999; and (2) specific elements of a management framework needed for effective implementation and oversight of the Army's best practice initiatives.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army To provide a mechanism to improve the potential for successfully implementing the Army initiatives and measure results, the Secretary of the Army should develop a management framework for implementing the 18 initiatives based on the principles embodied in the Results Act. Specifically, the management framework should include a comprehensive strategy that is directly lined to top-level DOD goals and objectives and that recognizes the interrelationship of the initiatives and the overall impact the initiatives will have on the Army's logistics pipeline, such as reducing pipeline time, improved customer service, and reductions in total inventory.
Closed – Implemented
In July 2000, the Army developed its Logistics Transformation Plan in response to Defense Reform Initiative 54 which required the military services to submit annual plans documenting the planned actions and related resources for implementing logistics initiatives. The Army Logistics Transformation Plan documents a broad range of interrelated activities necessary to meet the objectives of the Department of Defense Strategic Logistics Plan. The Plan provides more information than that included in the initial schedule, including linking Army initiatives to specific DOD Logistics Strategic Plan objectives. However, the Plan does not fully describe the overall impact the initiatives are expected to have on the Army's logistics pipeline.
Department of the Army To provide a mechanism to improve the potential for successfully implementing the Army initiatives and measure results, the Secretary of the Army should develop a management framework for implementing the 18 initiatives based on the principles embodied in the Results Act. Specifically, the management framework should include a performance plan that includes clearly defined goals and objectives, defined levels of accountability, quantifiable performance measures, interim schedule milestones, and plans to periodically assess the overall impact the initiatives have achieved in reducing inventory levels while improving the responsiveness of the supply system to user needs.
Closed – Implemented
In July 2000, the Army developed its Logistics Transformation Plan in response to Defense Reform Initiative 54 which required the military services to submit annual plans documenting the planned actions and related resources for implementing logistics initiatives. The Army Logistics Transformation Plan documents a broad range of interrelated activities necessary to meet the objectives of the Department of Defense Strategic Logistics Plan. The Plan provides more information than that included in the initial schedule, including more clearly defined goals and objectives, primary offices of responsibility, and interim milestones. However, the Plan does not, in many cases, provide quantifiable performance measures.

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Topics

Army procurementFederal property managementFederal supply systemsInventory control systemsLogisticsMilitary inventoriesPerformance measuresPrivate sector practicesStrategic planningBest practices