DOD released the “to-be”  roadmap, now known as the Logistics Roadmap, in July 2008. DOD’s latest  roadmap includes a number of initiatives and programs that involve the  implementation of IUID and RFID, two technologies that enable electronic  identification and tracking of equipment and supplies and that DOD  expects will improve its asset visibility. DOD’s Logistics Roadmap Documents Numerous Initiatives and Programs, but Falls Short of Providing a Comprehensive, Integrated Strategy

Although DOD intended that its Logistics Roadmap would provide a  comprehensive and integrated strategy to address logistics problems  department-wide, we found that the roadmap falls short of this goal. First, the roadmap does not identify the scope of  logistics problems or gaps in logistics capabilities, information that could  allow the roadmap to serve as a basis for establishing priorities to improve  logistics and address any gaps. Second, the roadmap lacks outcome-based  performance measures that would enable DOD to assess and track  progress toward meeting stated goals and objectives. Finally, DOD has not  clearly stated how it intends to integrate the roadmap into its decision- making processes and who will be responsible for this integration. Roadmap Lacks Key Elements Needed by Decision Makers to Identify and Address Logistics Problems across DOD

In its current form, the Logistics Roadmap lacks three elements that are  needed in order for it to serve as a more useful tool for DOD’s senior  logistics leaders in guiding, measuring, and tracking progress toward  achieving DOD logistics goals and objectives—one of the key stated  purposes of the roadmap. DOD officials stated that they  plan to remedy some of these weaknesses in their future efforts to update  and expand the roadmap. Roadmap Lacks Outcome- Based Performance Measures

The roadmap lacks outcome-based performance measures that would  enable DOD to assess and track progress toward meeting stated goals and  objectives. As noted previously, DOD decided to delay  development of the roadmap until the capability portfolio management  test cases had been completed; however, they had committed to Members  of Congress that the roadmap would be released by the summer of 2008. A comprehensive integrated strategy to address logistics problems  department-wide is critical, in part, because of the diffuse organization of  DOD logistics. Responsibility for logistics within DOD is spread across  multiple components with separate funding and management of logistics  resources and systems. Until  the roadmap provides a basis for determining priorities and identifying  gaps, incorporates performance measures, and is integrated into decision- making processes, it is likely to be of limited use, beyond the current  processes and information available, to senior DOD decision makers as  they seek to improve supply chain management. DOD May Face Challenges Achieving Widespread Implementation of IUID and Passive RFID

DOD has taken several steps toward implementing IUID and passive RFID  but may face challenges achieving widespread implementation because it  is unable to fully demonstrate the return on investment associated with  these efforts to the military components that have primary responsibility  for determining how and where these technologies are implemented. DOD Does Not Collect Information Needed to Fully Demonstrate Return on Investment for IUID and Passive RFID

Although implementation of IUID and passive RFID will require significant  funding commitments and staff resources from the military components,  DOD does not gather the cost and performance information needed to  fully demonstrate return on investment for the technologies to the military  components that have primary responsibility for determining how and  where these technologies are implemented. However, they lacked key data to quantify the extent  of the time savings. Recommendations for Executive Action

To improve DOD’s ability to guide logistics initiatives and programs across  the department and to demonstrate the effectiveness, efficiency, and  impact of its efforts to resolve supply chain management problems, we  recommend that the Secretary of Defense direct the Under Secretary of  Defense (Acquisition, Technology, and Logistics) take the following three  actions necessary to have a comprehensive, integrated strategy for  improving logistics:  Identify the scope of logistics problems and capability gaps to be  addressed through the Logistics Roadmap and associated efforts. We also reviewed memoranda directing components to  conduct assessments for specific objectives included in the roadmap. To obtain information on the progress DOD has made implementing item  unique identification (IUID) and passive radio frequency identification  (RFID), we reviewed DOD’s overall concept of operations and  implementation plan for automatic identification technology, which  includes IUID and passive RFID.
Why GAO Did This Study

Military operations in Iraq and Afghanistan have focused attention on the performance of the Department of Defense's (DOD) supply chain management. According to DOD, it spent approximately $178 billion on its supply chain in fiscal year 2007. As a result of weaknesses in DOD's management of its supply chain, this area has been on GAO's list of high-risk federal government programs since 1990. DOD released its Logistics Roadmap in July 2008 to guide, measure, and track logistics improvements. DOD has identified two technologies included in this roadmap, item unique identification (IUID) and passive radio frequency identification (RFID), as having promise to address weaknesses in asset visibility. GAO reviewed (1) the extent to which the roadmap serves as a comprehensive, integrated strategy to improve logistics; and (2) the progress DOD has made implementing IUID and passive RFID. GAO reviewed the roadmap based on DOD statements about its intended purposes and visited sites where IUID and passive RFID were implemented.

What GAO Found

The Logistics Roadmap falls short of meeting DOD's goal to provide a comprehensive and integrated strategy to address logistics problems department-wide. The roadmap documents numerous initiatives and programs that are under way and aligns these with goals and objectives. However, the roadmap lacks key information in three areas necessary for it to be a more useful tool that DOD's senior leaders can use to guide and track logistics improvement efforts toward achieving stated goals and objectives. First, the roadmap does not identify the scope of logistics problems or gaps in logistics capabilities, information that could allow the roadmap to serve as a basis for establishing priorities to improve logistics and address any gaps. Second, the roadmap lacks outcome-based performance measures that would enable DOD to assess and track progress toward meeting stated goals and objectives. Third, DOD has not clearly stated how it intends to integrate the roadmap into DOD's logistics decision-making processes or who within the department is responsible for this integration. DOD officials stated they plan to remedy some of these weaknesses in their follow-on efforts. For instance, DOD has begun to conduct gap assessments for individual objectives in the roadmap and hopes to complete these by July 2009. They stated that they recognized the need for these assessments; however, they had committed to Members of Congress to release the roadmap by the summer of 2008 and were unable to conduct the assessments prior to the release of the roadmap. A comprehensive, integrated strategy that includes these three elements is critical, in part, because of the diffuse organization of DOD logistics, which is spread across multiple DOD components with separate funding and management of logistics resources and systems. Until the roadmap provides a basis for determining priorities and identifying gaps, incorporates performance measures, and is integrated into decision-making processes, it is likely to be of limited use to senior DOD decision makers as they seek to improve supply chain management. DOD has taken initial steps to implement two technologies included in the Logistics Roadmap-IUID and passive RFID-that enable electronic identification and tracking of equipment and supplies; but has experienced difficulty fully demonstrating return on investment for these technologies to the military components that have primary responsibility for determining how and where these technologies are implemented. Although DOD has undertaken initial implementation efforts of these technologies at several locations, at present, it does not collect data on implementation costs or performance-based outcome measures that would enable the department to quantify the return on investment associated with these two technologies. Without this information, it may be difficult for DOD to gain the support needed from the military components to make significant commitments in funding and staff resources necessary to overcome challenges to widespread implementation of these technologies. As a result, full implementation of these technologies is impeded and the realization of potential benefits to asset visibility DOD expects may be delayed.