By
Mark Smulian
31 March 2011
Lack of logistics expertise, obsolete IT systems and confused management have led the Ministry of Defence to waste money on inefficient transport of military equipment and stores around the world, according to government auditors.
In a report published today, the National Audit Office also questions the practice of having three separate MoD logistics bodies responsible for materials in the UK, in transit and at their overseas destination.
NAO head Amyas Morse said: ‘The department urgently needs better supply chain information systems with the appropriate skills and processes to match.
‘It currently keeps the armed forces supplied by either stockpiling more than necessary, sending too many routine items by air, or both. This ties-up precious resources that could be better used to support troops.’
Switching just 10% of material from air to surface transport would save £15m a year, the report says.
It criticises the MoD supply chain for being ‘often staffed by non-specialist personnel who do not always have the necessary logistics or data analysis skills’ and adds: ‘As staff are assigned on two-year postings, by the time they are competent in this role they move on.’
The auditors found performance had improved since their previous report in 2009, citing some 130,000 consignments that successfully reached Afghanistan last year. However, only 54% of these deliveries were made on time, mainly because items were unavailable to be transported.
‘Either the department is not forecasting accurately usage and repair rates to ensure the right amount of stocks are held, or suppliers are unable to respond to theatre [of operations] demand,’ the report says.
Auditors noted that the MoD could not supply them with complete data on the cost of deliveries to Afghanistan, nor reconcile its inventory and supply chain costs.
The NAO is calling for the creation of a career path for logistics specialists and upgrading of ‘decades old’ IT systems.
Margaret Hodge, chair of the Commons Public Accounts Committee, said the report had exposed ‘failings in the department’s supply chain information systems and in its management of suppliers’.
Defence Minister Peter Luff said: ‘Operations in Afghanistan are our top priority and the NAO notes the improvements in the supply chain, including to our Armed Forces on the front line. We are constantly working to improve our performance and we are currently implementing an £800m contract with Boeing Defence for a more streamlined, agile, and effective logistics support chain.’
