Consulting case studies

A Logistics Overhaul Yields a Billion Dollars
in Savings

The Department of Defense achieved both better performance and remarkable cost savings when
it transformed its multi-billion-dollar supply chain.

Client’s challenge

To improve the Department of Defense’s transportation supply chain by:

  • Introducing efficiencies to cut costs in sensible ways
  • Analyzing best practices from the private sector to accelerate the transport of both people and equipment

PwC’s solution

Recommend a path to efficiency including:

  • 30 specific initiatives focusing on cost savings and process improvements
  • A reduction in use of subcontracted transport providers
  • Process analysis to make impactful changes to a slow requisition system

Business impact

  • 10 to 20 percent service-level improvements across the board.
  • More than $300 million in annual cost savings
  • More than $1 billion in cost savings to date
 
Published 10/2013

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