The defence logistics transformation programme continues to deliver significant benefits to the UK's Armed Forces. It is not only driving improvements in the effectiveness of the logistics support provided to the front-line commands, but also reducing the costs associated with providing that support.
Against the Defence Logistics Organisation's (DLO’s) strategic goal of reducing output costs by 20 per cent, the programme had delivered audited savings of £755 million by the end of 2005-06. This enabled the DLO to exceed its strategic goal target by £100 million. In 2005-06, the programme also contributed a further £660 million of audited savings against an in-year efficiency target of £538 million.
The principles of logistics transformation instigated by the programme are becoming increasingly embedded throughout the MoD including the front-line commands. They will also be at the heart of Defence Equipment and Support, the new integrated procurement and support organisation that forms in April 2007.