Independent Evaluation of The Bay Area Supply Depot Consolidation Prototype.

摘要

DMRD 902 projected that significant savings could be realized if defense supply depots were consolidated under DLA and a uniform automated distribution system were developed to replace the multiple systems then in use. The five supply depots in the San Francisco Bay Area were selected to serve as a prototype. This report presents an independent assessment of the first year of operation of the prototype. The prototype has generally maintained or improved performance compared to the FY89 baseline period, despite the turbulent conditions imposed by the Gulf war. Customer satisfaction appears to have been maintained. Implementation of the Defense Distribution System (DDS) has not gone smoothly. Major systems conversion and communications problems combined to degrade performance of some depot operations at Oakland. We are concerned that DDS is unlikely to produce expected savings. Most savings for the prototype's first year were expected from personnel reductions. Reductions did occur, but roughly in proportion to a decrease in depot workload. We were unable to attribute personnel savings to consolidation. Transportation savings were not claimed to avoid double counting with savings claimed from another DMRD. Many actions have been taken, however, to reduce transportation costs. Management improvements and more productive use of regional assets were also evident.... Supply Depot Consolidation, Defense Management Report Decision.