Commercial Practices: Leading-Edge Practices Can Help DOD Better Manage Clothing and Textile Stocks

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DIANE Publishing, Mar 1, 2001 - 72 pages
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Compares commercial logistics practices with similar DoD operations. Summarizes the results of a review of inventory mgmt. practices used by leading private sector companies and the DoD to provide clothing and textile (C&T) supplies. Describes various private sector initiatives having potential application to the military clothing logistical environment. The report addresses: (1) inventory problems and other inefficiencies in the Defense Logistics Agency's C&T logistics system; (2) commercial practices used in the private sector to reduce inventory holding and distribution costs; and (3) DoD's progress in improving C&T inventory mgmt. Charts and tables.
 

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Page 1 - The Honorable Carl Levin Chairman, Subcommittee on Oversight of Government Management Committee on Governmental Affairs United States Senate Dear Mr. Chairman: This report was prepared as part of your request that we continue to compare commercial logistics practices with similar Department of Defense operations. It summarizes the results of our review of...
Page 12 - Selfridge for the 3-year period ''we evaluated the Army cost comparison in response to a June 11, 1980, request from Senator Carl M. Levin, Chairman, Subcommittee on Oversight of Government Management, Senate Committee on Governmental Affairs, and concluded that the Army could achieve a potential savings of about $3.8 million over a 3-year period by contracting the activities at Selfridge (PSAD-80-79...
Page 3 - Many private sector firms and some federal agencies with uniformed employees are relying on prime vendors to manage their clothing inventories. Prime vendors provide timely and direct delivery between customers and suppliers, and order additional stock from manufacturers on short notice, with quick turnaround, to minimize inventory holding costs and improve customer service.
Page 15 - US Department of Agriculture, Animal and Plant Health Inspection Service, Hyattsville, Maryland...
Page 40 - Lake the RICS, many private companies have groups or classes of new employees who are outfitted and trained together. Currently, the 14 RICS have a continuous flow of high volume clothing inventory needs for new recruits. The Army has seven RICS; the Navy has three; the Marine Corps has two; and the Air Force has one. In addition, the Coast Guard, under the Department of Transportation, trains new recruits at its Cape May, New Jersey, Rie.
Page 60 - The GAO found that, in response to a May 1990 directive, the Defense Logistics Agency is seeking ways to adopt commercial practices for the clothing and textile items. The GAO also found that, in March 1993, the then Assistant Secretary of Defense (Production and Logistics) endorsed the January 1993 Defense Management Report Decision 903, which provided recommendations to the Defense Logistics Agency and the Military Services for achieving $1.3 billion in savings by FĎ 1997.
Page 59 - RESPONSE: Concur. It should be recognized, however, that prime vendors are commercial firms that buy or manufacture, store, and distribute a full line of supplies within a specific industry. The prime vendor contracts used by the DoD do not obligate the contractors to supply the full line of clothing and textile items managed by the Department . Instead, they are providing only specific items (eg, the recruit issue dress skirts and slacks for the Endosar« P*g« 12 of 19 GAO/NSIAD-94-64 Commercial...
Page 40 - Corps mes by the spring of 1994. Prime Vendor Concept Could Be Applied to RICs One commercial practice for supplying C&T items that has a high potential application in DOD is the use of prime vendors. In particular, the military service RICS share many similarities with private sector firms and federal agencies that use prime vendors. Like these businesses and agencies, the RICS issue a standard set of clothing items to new recruits.
Page 42 - In fact, the use of manual inventory management systems is not at all uncommon at the retail level.
Page 49 - Agency stocks was enough inventory on hand to last 10 years or more, based on current demand.

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