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LCD-77-437 1 (1977-09-07)

handle is hein.gao/gaobaacqx0001 and id is 1 raw text is: DOCUMENT RESUME 03583 - [A2513643) The Department of Defense Should Increase Efforts to Implement Vertical Controls over Military Stock Funds. LCD-77-437; B-159797. September 7, 1977. Released September 14, 1977. 42 pp. + enclosure (6 pp.). Report to Sen. John L. McClellan, Chairman, Senate Committee on Appropriations; by Elmer B. Staats, Comptroller General. Issue Area: Facilities and Material Management: Supply and ddintenance Operations Rcporting Systems (703). Co;itact: logistics and Communications Div. Budget Function: Natioal Defense: Department of Defense - Military (except procurement S contracts) (051). organization Concerned: Department of the Navy; Department of Defense; Department of the Army; Department of the Air Force. ,.,ngressional Relevance: Senate Cimmittee on Appropriationz. Trhe Senate Committee on Appropriations requested a followup revie t on actions taken by the Department of Defense (DOD) to implement centralized controls over Defense stccx funds. DOD has five stock funds which are all under the policy guidance of the Secretary of Defense. Each military service operates a fund tc prov4ie for its own needs. Findings/Conclusiuns: The Air Force and the Navy have impl.emented vertical controls over important segments of their stock funds. Vertical controls have not been extended to all Air Force and Navy stock fund items primarily because DOD has not adequately coordinated service implementatior of vertical management. The Army has .ct implemented vertical controls over any part of its stock fund which operates on a decentralized basis. Army inventory managers did not control their stocks as efficiently as their Air Force and Navy counterparts. The Air Force and Navy implementation demonstrated that the concept is feasible and effective, that it provides better supply responsiveness to stock fund customers, and tuat it makes more efficient use of stock fund assets. The delay in implementing vertical stock funds rsulte in larger stock fund capital needs. Reccmmendations: The Secretary of Defense should: develop an overall plan for improving logistics management and stock funding; establish a system to assure that ongoing or contemplated efforts by the military services and the Defense Logistics Agency are assessed fcr conformance with the coordinated long range plan; and assure strong 6onitoring of the Defense Logistics Agency's assignment to develop the standardized computer systems model and timely implementation of the Retail Inventory Management Stockage Policy in order to facilitate interservice vertical management. (Author/SW)

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