Defense Logistics: DOD Has Taken Actions to Improve Some Segments of the Materiel Distribution System

The Department of Defense (DOD) operates a complex, multibillion-dollar distribution system for delivering needed supplies and equipment to U.S. forces across the world. DOD's goal in operating its global distribution system is to deliver the right item to the right place at the right time, and also at the right cost. The materiel distribution system covers multiple legs, from the movement of supplies in the continental United States to tactical movement on the battlefield, and must be capable of reaching its military customers whether they are located on large, well-established bases or at small, remote outposts. As we have reported, the federal government is facing serious long-term fiscal challenges, and DOD may confront increased competition over the next decade for federal discretionary funds. Given the fiscal environment DOD must operate in now and into the future, the distribution of supplies and equipment to the warfighter must be performed as effectively and efficiently as possible to ensure the best use of limited resources. Strategic guidance issued by the Secretary of Defense in January 2012 emphasized that DOD must continue to reduce the cost of doing business, in particular finding further efficiencies in overhead, business practices, and support activities.