DLA May Not Reach DOD's Goal Of Reducing On-Order Excess Inventory

摘要

The Defense Logistics Agency may have trouble reaching the Defense Department's goal of reducing on-order excess inventory to less than 4 percent by the end of fiscal year 2016, according to a report released June 19 by the Government Accountability Office. DLA has been reducing its inventory since 2012 to operate with a smaller budget brought on by sequestration and a draw down of the wars in Afghanistan and Iraq. According to the report, on-order excess inventory varies considerably and may hinder future reductions. Part of the problem, GAO said, is the lack of DLA oversight for the inventory. "While the supply chains managed by DLA have processes established to monitor and reduce on-order excess inventory, senior managers at DLA headquarters do not regularly monitor performance of these processes," the report stated. "Since DLA is not monitoring performance regularly, is not consistently tracking and reporting performance data and has not established on-order excess inventory goals to guide improvement at the individual supply chains, DLA is not in the best position to maximize its reduction of on-order excess inventory."