INVENTORY MANAGEMENT

Section 328 of the National Defense Authorization Act for Fiscal Year 2010 (P.L. 111-84) required the Secretary of Defense to submit a comprehensive plan for improving the inventory management systems of the Military Departments and the Defense Logistics Agency with the objective of reducing the acquisition and storage of secondary inventory that is excess to requirements.

This plan details specific objectives, to improve forecasting and reduce or terminate orders to ensure the inventory accurately reflects actual needs, to enhance the methods for determining the amount of inventory to retain, and to ensure timely review and disposal of excess inventory and secondary item inventory that is excess to requirements.

The DoD Comprehensive Inventory Improvement Plan, developed as a collaborative effort of the ODASD(SCI), the Military Services, and the Defense Logistics Agency (DLA), contained required 8 sub-plans, and was submitted to the Chairman of the Committee on Appropriations and the Chairman of the Committee on Armed Services on November 8, 2010. 
This plan captured ongoing actions of the Military Services and DLA as well as 28 planned DoD-wide actions to improve overall inventory management. 
Click the image to view the Comprehensive Inventory Management Improvement Plan – October 2010

The plan outlines two overall goals:
  • By the end of FY2016, the Department will reduce total on-order excess inventory from 8.5 percent in FY2009 to 4 percent of total obligated on-order dollars.
  • The Department will reduce the on-hand excess inventory from 11.3% in FY2009 to 8% of the current value of potential reutilization stocks (PRS) by the end of FY2016.

The Department of Defense (DoD) also publishes the annual Supply System Inventory Report (SSIR). The report provides summary statistics on the status of DoD supply system inventories. The report summarizes, by dollar value, inventories by DoD Component, retention categories, funding source, and national inventory control points.
Click the image to review the past and current Supply System Inventory Reports
Finally, the Department publishes an annual Supply Chain Fact Book. The book given information relevant to inventory management, including inventory control point locations, numbers of items managed by DoD Component, and more.

Click the image to review the Supply Chain Fact Book

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