Commercial Practices: Leading-Edge Practices Can Help DOD Better Manage Clothing and Textile Stocks
NSIAD-94-64
Published: Apr 13, 1994. Publicly Released: May 18, 1994.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) inventory management system for supplying clothing and textile (C&T) items to the military services, focusing on: (1) inventory problems and other inefficiencies in the Defense Logistics Agency's (DLA) C&T logistics system; (2) commercial practices to reduce inventory holding and distribution costs; and (3) DOD progress in improving C&T inventory management.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | In addition to current modified prime vendor demonstration efforts to obtain low volume and special order items, the Secretary of Defense should direct the Director, DLA, to conduct a pilot project to demonstrate whether the prime vendor concept is beneficial in providing high usage uniform items, such as items that are currently a part of the Defense Personnel Supply Center quick response initiatives, to recruit induction centers. |
The intent of this recommendation has been achieved. DOD began testing a prime vendor program at the Lackland Air Force Base recruit induction center in March 1996 and expects it to continue for two more years. In identifying benefits to date, DOD has reported that logistics response time has improved, customer satisfaction has increased, and inventories at wholesale and retail levels has been reduced. DOD is planning to expand the types of items in the second year of the test to include Class A dress items. In the third year of the test, DOD plans to bring the prime vendor and his inventory into Lackland's base supply operation and supply clothing items from that location. This is a key feature of the integrated supplier concept--one that GAO has been promoting for several years. GAO plans to follow developments of this program under future work assignments.
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| Department of Defense | The Secretary of Defense should direct the Director, DLA, to determine the number of prime vendors, items, military services, and recruit induction centers include in the project to measure the cost benefit potential. |
As stated in the action taken on recommendation 1, these aspects are being covered in DOD's test of the prime vendor program for clothing items.
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| Department of Defense | The Secretary of Defense should direct the Director, DLA, to use the pilot project as an opportunity for testing ways to overcome other impediments such as software and hardware incompatibilities within DOD and inconsistencies between DOD and commercial sector procurement practices. |
As stated in the action taken on recommendation 1, these aspects are being covered in DOD's test of the prime vendor program for clothing items.
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Topics
Administrative costsBest practicesClothing industryFederal supply systemsInventory control systemsManagement information systemsMilitary cost controlMilitary inventoriesMilitary procurementPrivate sector practicesUniformsComparative benchmarking products