Report 3—Supplying the Canadian Armed Forces—National Defence
At a Glance Report 3—Supplying the Canadian Armed Forces—National Defence
What we examined (see Focus of the audit)
This audit focused on whether National Defence supplied the Canadian Armed Forces with the materiel they needed, when needed. We examined whether National Defence delivered the requested materiel items in a timely manner while avoiding needless transportation costs. We examined the supply chain for selected materiel from the time of request to the delivery of the materiel. Selected materiel included tools, spare parts, uniforms and specialized clothing, and rations. We excluded ammunition, bombs, and missiles, and also stand-alone equipment such as aircraft, vessels, and vehicles.
Why we did this audit
This audit is important because Canada’s national security and the success of Canadian military operations abroad depend on National Defence’s ability to supply the Canadian Armed Forces with the materiel they need to do their jobs to the best of their ability. The delivery of supplies must be timely so that materiel reaches military members when they need it.
Overall message
Overall, we found that poor supply chain management often prevented National Defence from supplying the Canadian Armed Forces with materiel when it was needed. The military received materiel such as spare parts, uniforms, and rations later than the requested date half the time. Delays were frequently due to stock shortages. When stock is unavailable, materiel needs to be located elsewhere and transported to the right location, requiring additional steps in the supply chain and delaying deliveries. We found that a third of some 1 million requests were rerouted. Rerouted requests resulted in increased use of commercial transportation, which is often more costly than other options.
We also found that a large portion of the high-priority materiel requests were submitted as high priority without justification. Unjustified priority requests put an excessive burden on the supply chain and incur extra costs. National Defence did not have performance indicators to measure whether materiel was stocked at the right warehouses, or whether warehouses had sufficient stock to meet the needs of the military bases and units they were tasked with supporting. These weaknesses create uncertainties and delays in the supply chain, which prevent National Defence from making the most efficient use of its resources to supply the Canadian Armed Forces.
What we found about …
Supply Chain
Entities Responses to Recommendations
The audited entities agree with our recommendations and has responded (see List of Recommendations).
Related information
| Report of the | Auditor General of Canada |
|---|---|
| Type of product | Performance audit |
| Topics | |
| Entities | |
| Completion date | 28 January 2020 |
| Tabling date | 8 July 2020 |
| Related audits |
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For more information
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