The authors provide a framework for an integrated Department of Defense (DoD) supply chain, associated policy recommendations, and a companion framework for management practices that will drive people to take actions aligned with this integrated supply chain approach. Building on the framework and policy recommendations, they identify opportunities to improve DoD supply chain efficiency and highlight several already being pursued by DoD.

Military operations in Iraq and Afghanistan have focused attention on the performance of DoD¿s supply chain management. DoD spent $178 billion on its supply chain in FY 2007. There have been many reported weaknesses in DoD's management of its supply chain. DoD released its Logistics Roadmap in July 2008 to guide, measure, and track logistics improvements. DoD has identified two technologies included in this roadmap -- item unique ident. (IUID) and passive radio frequency ident. (RFID), as having promise to address weaknesses in asset visibility. This report reviewed: the extent to which the roadmap serves as a comprehensive, integrated strategy to improve logistics; and the progress DoD has made implementing IUID and passive RFID.

Military operations in Iraq and Afghanistan have focused attention on the Department of Defense's (DOD) supply chain management. The supply chain can be critical to determining outcomes on the battlefield, and the investment of resources in DOD's supply chain is substantial. In 2005, with the encouragement of the Office of Management and Budget (OMB), DOD prepared an improvement plan to address some of the systemic weaknesses in supply chain management. GAO was asked to monitor implementation of the plan and DOD's progress toward improving supply chain management. GAO reviewed (1) the integration of supply chain management with broader defense business transformation and strategic logistics planning efforts; and (2) the extent DOD is able to demonstrate progress. In addition, GAO developed a baseline of prior supply chain management recommendations. GAO surveyed supply chain-related reports issued since October 2001, identified common themes, and determined the status of the recommendations.

The availability of spare parts and other critical items provided through the Department of Defense's (DOD) supply chains affects the readiness and capabilities of U.S. military forces. Since 1990, GAO has designated DOD supply chain management as a high-risk area. In 2005, DOD developed a plan aimed at addressing supply chain problems and having GAO remove this high-risk designation. DOD's plan focuses on three areas: requirements forecasting, asset visibility, and materiel distribution. GAO was asked to provide its views on (1) DOD's progress in developing and implementing the initiatives in its plan, (2) the results of recent work relating to the three focus areas covered by the plan, and (3) the integration of supply chain management with efforts to improve defense business operations. GAO also addressed broader issues of logistics governance and strategic planning. This testimony is based on prior GAO reports and analysis. To determine whether to retain the high-risk designation for supply chain management, GAO considers

"The DoD Supply Chain Management Implementation Guide is a tool to assist logistics personnel who are responsible for implementing supply chain management. This Guide presents the key supply chain principles and implementation strategies compiled into a structured and workable approach for achieving progress toward fully incorporating supply chain management into the DoD logistics process. This document is Intended to serve as a roadmap for individuals and organizations seeking day-to-day direction for implementing supply chain management in a DoD environment."--DTIC abstracts.