In December of 2008, I penned comments on this blog related to reports that indicated that a U.S. government audit agency had determined that the U.S. Navy had $7.5 billion (yes that is billions with a “B”) in excess spare parts. My comments reflected on how the Navy needed to get serious about investing in modern service parts business processes and supporting technology.
I was therefore somewhat pleased to read an MCA Solutions press release this week that indicated that the U.S. Navy’s Naval Inventory Control Point had successfully implemented spare parts inventory optimization software. The release further indicates that the MCA software is expected to be integrated with the Navy’s ongoing SAP ERP implementation project, scheduled for completion in early 2010.
The next phase for service parts modernization is the Navy’s maritime and base operating stock inventory.
It’s good to see that the Navy is serious about moving forward and I applaud their team efforts and progress to date. The previous audit identified almost $1.9 billion of spare parts inventory with no projected demand. Perhaps those parts can now be put to alternative use.
A final related note. There are few blogs that are solely focused on the service management and service parts planning area. If you’re looking for a good listing, you can review a posting by Tim Andreae on the Service Matters blog. Service Matters is not related to Supply Chain Matters, but MCA was nice enough to seek my opinion before naming their blog.