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 <subject>Accountability</subject>
 <subject>Combat readiness</subject>
 <subject>Defense capabilities</subject>
 <subject>Internal controls</subject>
 <subject>Inventory control</subject>
 <subject>Military inventories</subject>
 <subject>Military operations</subject>
 <subject>Property and supply management</subject>
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<titleInfo>
 <title>DOD&apos;s High-Risk Areas: High-Level Commitment and Oversight Needed for DOD Supply Chain Plan to Succeed</title>
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<abstract>Since 1990 the Department of Defense&apos;s (DOD) supply chain
management processes have been on GAO&apos;s list of high-risk areas  
needing urgent attention and fundamental transformation to ensure
that they function in the most economical, efficient, and	 
effective manner possible. Recently in collaboration with the	 
Office of Management and Budget (OMB), DOD developed a plan to	 
address some of the systemic weaknesses as a first step toward	 
removing supply chain management from the list. DOD&apos;s plan	 
focuses on three areas for improvement: accuracy of supply	 
requirements forecasts, distribution of material, and asset	 
visibility. GAO was asked to provide its views on (1) the	 
importance of supply chain management in DOD, (2) why GAO listed 
it as a high-risk area, (3) GAO&apos;s assessment of DOD&apos;s plan to	 
improve supply chain processes, and (4) GAO&apos;s plans to follow up 
on DOD&apos;s efforts. This testimony contains GAO&apos;s views on what	 
remains to be done to improve DOD&apos;s supply chain management and  
bring about lasting solutions. Continued efforts to complete and 
implement DOD&apos;s plan as well as continued oversight by Congress  
are essential.</abstract>
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<identifier type="preferred citation">GAO-06-113T</identifier>
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<note>Testimony</note>
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<subject>
 <topic>Accountability</topic>
 <topic>Combat readiness</topic>
 <topic>Defense capabilities</topic>
 <topic>Internal controls</topic>
 <topic>Inventory control</topic>
 <topic>Military inventories</topic>
 <topic>Military operations</topic>
 <topic>Property and supply management</topic>
 <topic>Strategic planning</topic>
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  <partNumber>Title 10 Section 2222</partNumber>
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