Chapter 1


We have a serious problem looking to the future…The way we are functioning today is not going to be satisfactory for the challenges we face in the future, and knowing that, we must change.

—General Peter Pace, chairman, Joint Chiefs of Staff, July 20, 2006

Persistent Challenges

In January 2005, the Government Accountability Office (GAO) identified Department of Defense (DoD) supply chain management as one of 25 activities across the entire federal government classified as “high risk” and in need of “broad-based transformation.” This is not a new observation. Indeed, since 1990, the GAO has identified DoD inventory management as high risk because “management systems and procedures were ineffective and wasteful [and] the ...

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