§ Earl Attleeasked Her Majesty's Government:
What were the objectives and financial benefits of the cancelled Defence Stores Management Solution when the programme was approved. [HL5879]
§ Lord BachThe objectives of the Defence Stores Management Solution were to manage the single service inventories as a single defence inventory, to build a single system to replace the existing Royal Navy, Army and Royal Air Force systems, and to provide a deployed inventory management capability. The £650 million project was suspended on grounds of affordability, against estimated net savings of £650 million over a 10 year period.
§ Earl Attleeasked Her Majesty's Government:
How the Ministry of Defence will now meet the objectives of the cancelled Defence Stores Management Solution programme. [HL5880]
§ Lord BachFollowing the suspension of the Defence Stores Management Solution (DSMS) project, the department commissioned a review by McKinsey and Company to examine how it could secure maximum benefit from the Defence Logistics Organisation while safeguarding, or, where possible, enhancing service delivery to the front line. McKinsey identified process changes and short-term efficiencies that will not require the full functionality DSMS but will reduce the consumables and capital spares purchase across defence. Further requirements, including the continuing need for a deployed inventory management capability, will be addressed as part of a wider end-to-end review of the logistics process, involving the Defence Logistics Organisation, front-line commands and industry, which should be completed by mid-2003.