GAO-01-30 Defense Inventory: Implementation Plans to Enhance Control Over Shipped Items Can Be Improved

Since the end of the Cold War, the Department of Defense has dramatically reduced its fighting forces and logistics infrastructure. The Department estimates it is spending about $59 billion a year on logistics support 1 programs to operate and sustain weapon systems, 2 but it reports that significant reductions can be achieved by adopting a variety of different logistics support practices. We reported in January 2001 that serious weaknesses persist throughout the Department's logistics activities and that it is unclear to what extent ongoing reengineering management improvement initiatives will overcome them. 3 The Department has taken a number of significant steps in recent years directed at improving its outdated and inefficient logistics processes. Specifically, the Office of the Secretary of Defense and each of the military services and appropriate Defense commands have established a number of significant logistics reengineering efforts. In addition, the Office of the Secretary of Defense developed the Fiscal Year 2000 Logistics Strategic Plan in August 1999, which outlines six overall objectives, a basic.