Improving Suspended Stock Policies and Procedures at Defense Logistics Agency San Joaquin

Abstract

Defense Logistics Agency (DLA) Distribution San Joaquin (DDJC) manages a substantial portion of DLA’s$1.8 billion in suspended stock inventory, 1.4 million parts valued at $208.5 million, posing challenges in storage capacity and operational efficiency. This research aimed to dissect the reasons behind the accumulation of suspended stock and offer actionable recommendations. Through various analysis methodologies, the study sought to enhance DDJC’s suspended stock processing, potentially improving the logistics readiness of all military services. DDJC’s suspended stock accumulation stems from customer returns, quality deficiencies, legal constraints, counterfeit items, and more. These issues strain resources and hinder operational effectiveness within DLA. Through trend analysis, ABC inventory analysis, condition code and depot level repairable classification, a survey, and insights from prior DLA initiatives, this research sought to provide an understanding of suspended stock management at DDJC. Our research did not identify a single issue that specifically led to suspended stock accumulation at DDJC or uncover a specific policy or SOP that DDJC could revise to improve suspended stock processing. Based on our research and to realize the most ROI, we recommend a full review of the training tools and job breakdown sheets DDJC uses to ensure alignment with DLA SOPs, and a focus on clearing parts in category code A, as well as suspended depot level repairable items.