The Department of Defense Could Save Several Millions Dollars Annually Through Improved Management and Control of Reusable Containers

Gao ID: LCD-78-214 July 19, 1978

The military services spend an estimated $2 billion annually for packaging. The Army and Navy could save millions of dollars annually by improving their controls and accounting systems relative to specialized reusable containers.

Existing controls are not sufficient to prevent the loss of valuable specialized reusable containers by the military services. This lack of control and visibility resulted in unnecessary procurement of containers, unnecessary fabrication of substitute containers, and premature disposal of containers. Although reusable containers have characteristics similar to other items of supply and many containers are of high dollar value, they are generally not treated as accountable assets. As a result, containers may be obtained without cost to the user, lost without explanation, disposed of without justification, or sold without approval. DOD and the military services need to give more attention to the management and control of reusable containers to eliminate such problems as misuse, failure to redistribute excess reusable containers, and premature disposal. The Army and Navy are not selecting reusable containers based on cost-effectiveness analyses or other relevant criteria.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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