Managing the Defence Inventory: Ministry of Defence
HC 190, Report by the Comptroller and Auditor General, Session 2012-13
- National Audit Office (NAO)
- TSO (The Stationery Office)
The Ministry of Defence (MoD) is buying more inventory than it uses and not consistently disposing of stock it no longer needs, according to the report 'Managing the Defence Inventory: Ministry of Defence (HC 190)'.
Between the end of March 2009 and the end of December 2011 the total value of the inventory held by the armed forces and in central depots of non-explosives increased by 13%, from £17.2 billion to £19.5 billion.
The Department estimates that it has spent £4 billion between April 2009 and March 2011 on raw material and consumable inventory, such as clothing or ammunition, but £1.5 billion (38%) of this was unused.
The NAO estimates that the costs of storing and managing inventory were at least £277 million in 2010-11. Furthermore, over £4.2 billion of non-explosive inventory has not moved at all for at least two years and a further £2.4 billion of non-explosive inventory already held is sufficient to last for five years or more.
During 2010 and 2011, the MoD identified inventory worth a total of £1.4 billion that could either be sold or destroyed, but it was unable to provide information on the value of the stock that had already been destroyed.
The Department has commissioned a review to establish and sustain more cost effective inventory management and plans to implement its recommendations by March 2013.
|Format||Paperback||Published||28 Jun 2012|
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