The armed services must protect national security and support warfighter readiness. However, after 10 years of rising budgets, the Department of Defense (DoD) is now facing the challenge of meeting its mission with a declining budget.
Organizations must reduce total logistics support costs without sacrificing superior logistics services. Accenture’s experience reveals that focused analytics initiatives can rapidly identify and solve the root causes of today’s high-cost logistics problems.
As part of the Pentagon’s wide reform agenda, former Defense Secretary Robert Gates mandated that leadership identify significant cost savings—$100 billion in overhead over five years to lower the cost to serve and reinvest savings back into mission-critical needs.1 The focus is on cutting excess by eliminating what is redundant, inefficient and unnecessary to maintain a modern fighting force. In addition, the US military must operate in a federal budget environment that many observers think will require future, perhaps significant, cuts to defense spending.
1. Gates, Robert M. (August 9, 2010). Statement on Department Efficiencies Initiative. In U.S. Department of Defense website. Retrieved March 8, 2011, from http://www.defense.gov/speeches/speech.aspx?speechid=1496.