MoD slammed over continuing supply-chain failings

19 Aug 11
The system used by the Ministry of Defence to supply the armed forces is now 'at critical risk of failure' and could leave frontline troops short of crucial equipment within a month, MPs have warned.

By Richard Johnstone | 19 August 2011

The system used by the Ministry of Defence to supply the armed forces is now ‘at critical risk of failure’ and could leave frontline troops short of crucial equipment within a month, MPs have warned.

In a report, The use of information to manage the defence logistics supply chain, the Public Accounts Committee points out that the deficiency in the system has been raised in a serious of reports since 1986. It says a more efficient supply chain would also free resources for frontline operations.

The MoD sends supplies to forces deployed overseas for military operations, such as in Afghanistan and Libya, and to personnel stationed in permanent bases or taking part in training exercises. Staff deployed on operations determine what supplies are needed, which are then sent to them through a supply chain that stretches back to manufacturers.

At least £347m was spent on transporting supplies overseas in 2010/11, with some 130,300 individual deliveries made to Afghanistan alone in 2010.

Although the MoD ‘rightly puts a strong emphasis on ensuring troops get the supplies they need’, it also needs to place greater emphasis on ensuring value for money, the MPs say.

There is room for efficiencies in the supply chain without jeopardising operational effectiveness, the report suggests, but the MoD does not have information to indentify where savings could be made, including the full costs of its current activities or the cost of alternative supply options.

The MPs highlight that the primary risk is the use of old data systems, particularly those used to track supplies in warehouses, which are much older and not fully compatible across the department. This leads to problems knowing which supplies are held where, and the risk of failure of these warehouse inventory systems has been rated as ‘critical’ by the Defence Logistics Board.

The MoD is now seeking to resolve these information problems through its Future Logistics Information Services project, expected to be implemented by 2014. Until then, it will continue to store data in systems that are at critical risk of failure, the MPs say.

Committee chair Margaret Hodge added: ‘For twenty-five years, the department has promised this committee that it would resolve the long-standing problems associated with its supply chain. Yet these problems persist.

‘A more efficient supply chain could release resources for the front line. But the department does not have the information to develop more cost-effective ways of running its supply operations.’

Responding to the report, minister for defence equipment Peter Luff said: ‘Ensuring our armed forces on the front line have all they need is a top priority and there are no shortages in Afghanistan. The complexity of supplying a conflict zone should not be underestimated and we have successfully kept our troops’ supplied, overcoming major challenges like the Icelandic ash cloud and disruption to overland supply routes in Afghanistan.

‘We have recently more than halved the time it takes to deliver the most urgent items from the UK to the front line. We are placing greater demands on industry to hit their delivery schedules and more broadly we are pushing through radical reform across the MoD to instigate a new emphasis on financial rigour and cost control.’

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