Defense Logistics: Army Should Track Financial Benefits Realized from its Logistics Modernization Program

Abstract : The Army initiated LMP in 1999 to replace two aging materiel management systems the Commodity Command Standard System and the Standard Depot System. In replacing these systems, which had been used for more than 30 years to manage inventory, depot maintenance, and arsenal manufacturing operations, the Army expected LMP to help transform its logistics operations. A modified commercial off-the -shelf system, LMP was intended to support AMC industrial operations and improve business processes and practices in areas such as operations at depots and arsenals and inventory management. By providing a single source of data and integrated decision-making tools, LMP was expected to increase efficiencies in AMC operations such as buying and managing spare and repair parts and conducting depot level maintenance. For example, in the area of planning future maintenance capacity, the Army expected improvements to AMC budget forecasts and adjustments through reduced repair cycle time, better resource allocation, increased production throughput, reduced production cost, and more accurate production schedules. With LMP s deployment, the Army expected to achieve benefits that included reduced equipment repair times, improved inventory forecasting, and cost savings. Additionally, LMP is part of the Army s broader strategy to implement enterprise resource planning systems in other areas and, as such, is expected to integrate with other Army systems, to include the General Fund Enterprise Business System and the Global Combat Support System-Army.