Gartner Research

Four Immediate Actions to Take to Reduce DoD Inventory Costs

Published: 30 April 2013

ID: G00251012

Analyst(s): Jane Feitler, Marko Pukkila

Summary

Inventory is one of the three main drivers of Department of Defense (DoD) supply chain and logistics costs. Better management and control of inventory deliver short-term and long-term savings, such as fewer back orders, fewer out-of-stocks and cycle time reductions.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Drive Incremental Improvements by Analyzing Root Causes of Excess Inventory
  • Have Inventory Review and Replenishment Actions Taken as Close to Real Time as Possible
  • Use Gartner's Hierarchy of Metrics to Drive Desired Operational Outcomes or Behaviors
  • Reduce Cycle Times by Re-engineering Sourcing, Order and Delivery Processes, Removing Waste and Inefficiencies

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