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National Audit Office report: Confirmed impacts: NAO work helps the Ministry of Defence reduce excess stock

Confirmed impacts: NAO work helps the Ministry of Defence reduce excess stock

We estimate that the MOD made £253 million of savings on inventory purchases in 2012 as a result of our recommendations. This NAO impacts case study represents one example where there has been some beneficial change, whether financial or non-financial, resulting from our involvement.

Impacts case study

In our Managing the Defence inventory report (June 2012) we found that the Ministry of Defence was keeping its inventory levels unnecessarily high, tying up resources.

The Permanent Secretary and Chief of Defence Materiel reported that the Department had since changed its inventory policy, using the analysis in our report to plan new stock levels.

We estimate that the MOD made £253 million of savings on inventory purchases in 2012 as a result of our recommendations.

What are impacts?

The NAO collects examples of where there has been some beneficial change, whether financial or non-financial, resulting from our involvement. All of these examples are subject to internal quality assurance review, and agreed with senior management of the audited bodies.

Financial impacts represent our estimate of the financial benefits achieved following implementation of the NAO’s recommendations to government, and are independently validated by our external auditors.

 

Publication details:

Published date: June 6, 2013