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 <subject>Defense cost control</subject>
 <subject>Defense procurement</subject>
 <subject>Inventory control</subject>
 <subject>Logistics</subject>
 <subject>Military forces</subject>
 <subject>Military inventories</subject>
 <subject>Military materiel</subject>
 <subject>Spare parts</subject>
 <subject>Strategic planning</subject>
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 <title>DOD&apos;s High-Risk Areas: Efforts to Improve Supply Chain Can Be Enhanced by Linkage to Outcomes, Progress in Transforming Business Operations, and Reexamination of Logistics Governance and Strategy</title>
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<abstract>The availability of spare parts and other critical items provided
through the Department of Defense&apos;s (DOD) supply chains affects  
the readiness and capabilities of U.S. military forces. Since	 
1990, GAO has designated DOD supply chain management as a	 
high-risk area. In 2005, DOD developed a plan aimed at addressing
supply chain problems and having GAO remove this high-risk	 
designation. DOD&apos;s plan focuses on three areas: requirements	 
forecasting, asset visibility, and materiel distribution. GAO was
asked to provide its views on (1) DOD&apos;s progress in developing	 
and implementing the initiatives in its plan, (2) the results of 
recent work relating to the three focus areas covered by the	 
plan, and (3) the integration of supply chain management with	 
efforts to improve defense business operations. GAO also	 
addressed broader issues of logistics governance and strategic	 
planning. This testimony is based on prior GAO reports and	 
analysis. To determine whether to retain the high-risk		 
designation for supply chain management, GAO considers factors	 
such as whether DOD makes substantial progress implementing	 
improvement initiatives; establishes a program to validate the	 
effectiveness of the initiatives; and completes a comprehensive, 
integrated strategy.</abstract>
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<note>Testimony</note>
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 <topic>Defense cost control</topic>
 <topic>Defense procurement</topic>
 <topic>Inventory control</topic>
 <topic>Logistics</topic>
 <topic>Military forces</topic>
 <topic>Military inventories</topic>
 <topic>Military materiel</topic>
 <topic>Spare parts</topic>
 <topic>Strategic planning</topic>
 <topic>Supply chain management</topic>
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