Value for Money

Defence inventory management

Published 13 September 2023 5 recommendations Ministry of Defence Defence and national securityMilitary equipment, logistics and technology nao.org.uk
Delivery to the frontline is still being put at risk by longstanding weaknesses in inventory management, despite the Ministry of Defence taking steps to improve, according to a new National Audit Office report.

Recommendations (5)

Source: NAO Recommendations Tracker · PAC follow-up below
5
Accepted
5
In Progress
5
NAO Confirmed
Ministry of Defence
Rec 1 Accepted Work in Progress
To address its long-standing challenges in inventory management and successfully deliver its transformation initiatives, we recommend that the MoD: defines the levels of inventory needed to support its new strategic aims, and develops an understanding of what arrangements are needed to support these, and the barriers to achieving them
Page 14, 20a Q4 2026
Ministry of Defence
Rec 2 Accepted Work in Progress
To address its long-standing challenges in inventory management and successfully deliver its transformation initiatives, we recommend that the MoD: identifies and prioritises the resources it needs within Defence Support and across MoD?s constituent organisations to ensure its transformation programmes can be implemented successfully to deliver the available financial and operational benefits.
Page 14, paragraph 20, point e Q4 2032
Ministry of Defence
Rec 3 Accepted Work in Progress
To address its long-standing challenges in inventory management and successfully deliver its transformation initiatives, we recommend that the MoD: ensures that a management framework for raw material and consumable commodities is in operation, which controls demand and consumption, incentivises the upkeep of reserve items, and is supported by appropriate management information and tools;
Page 14, paragraph 20, point b Q4 2026
Ministry of Defence
Rec 4 Accepted Work in Progress
To address its long-standing challenges in inventory management and successfully deliver its transformation initiatives, we recommend that the MoD: develops an assessment of the skills and resources its needs across inventory management, whether current resourcing levels are sufficient to meet these, and what resourcing risks it is carrying in its current and future operations.
Page 14, paragraph 20, point d Q3 2026
Ministry of Defence
Rec 5 Accepted Work in Progress
To address its long-standing challenges in inventory management and successfully deliver its transformation initiatives, we recommend that the MoD: draws together the best practice from its current projects to identify surplus inventory, supported by a coherent plan covering its whole inventory estate. It must also ensure this approach is brought into its future inventory management outsourcing;
Page 14, paragraph 20, point c Q4 2026

Parliamentary Committee Follow-Up

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

Eighth Report - Improving Defence Inventory Management
Public Accounts Committee · 19 January 2024 · 11 recommendations