Pentagon targets supply chain for savings
June 28, 2012
According to a report released by Deloitte Consulting LLP, military spending on maintenance of equipment, supplies and transportation is estimated to be close to $150 billion, causing some to research how those costs could be cut and the money reallocated for other areas.
Vice Admiral Mark Harnitchek, director of the Defense Logistics Agency in Fort Belvoir, Virginia, stated that saving money spent on military operations is tough, according to National Defense magazine.
"Our theme for the [fiscal year 2014] program budget review is to reduce cost and improve support," Harnitchek told reporters on June 27 at a breakfast meeting, adding that bloated inventories will be cut before they target cutting staff for savings.
Over the next five years, Harnitchek has directed the Defense Logistics Agency to cut $10 billion in costs, which he says will be a challenge, National Defense stated.