DOD Food Inventory

GAO reviewed the Department of Defense's (DOD) military food supply system for feeding troops within the continental United States, comparing its logistics practices for supplying food with those used by the food service industry to identify any practices DOD could adopt to reduce its logistics costs. GAO found DOD's food supply system to be outmoded and inefficient. Inventories are too large at all levels, and items often sit on shelves for months or years before reaching users. Many costs incurred for holding, handling, and transporting large quantities of food are unnecessary because the existing network of private sector full-line distributors could supply food to DOD much more efficiently. DOD's limited use of private distributors to meet some food needs has demonstrated such benefits as lower costs and improved service.

GAO found that: (1) while food inventories at DOD depots and warehouses are extensive and retained over long periods because of an inefficient, multilayered, and redundant supply system, private industry food inventories are streamlined, competitive, efficient, and maintained at low inventory levels; (2) DOD could avoid unnecessary operational costs and increase its operational efficiency and quality of service by increasing its use of private-sector distributors; (3) reliable DOD operational cost estimates are not available because DOD does not maintain food cost data on warehouse activities; (4) DOD has been able to reduce costs and improve food quality and customer service through its limited use of private-sector distributors; (5) DOD inventory reduction and food supply system modification efforts include eliminating some depot storage functions, increasing the frequency of depot deliveries, adopting industry-type contracting methods, implementing direct delivery programs, consolidating local item procurements, and developing automated systems to enhance communications between depots, warehouses, and distributors; and (6) DOD does not have immediate plans to expand its use of distributors or eliminate its existing food supply system because commercial distributors are often precluded from supplying items because of military packaging and ingredient specifications, government-unique contract requirements, and uncertainties regarding distributors' ability to deliver items to ships and other end-users.

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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