A new report has heavily criticised the Ministry of Defence (MoD) for failing to make any notable improvements in its supply chain for 25 years, despite constantly promising to introduce better systems to resolve significant problems with its logistics information.

The Public Accounts Committee report entitled The use of information to manage the defence logistics supply chain, examines the MoD's use of information to manage the supply chain to frontline troops and warns that the system is at “critical risk of failure”.

The MPs have come to six conclusions in the report:

1. The department has put a low emphasis on value for money in managing its supply chain.
2.  The department has made little progress in resolving long-standing problems with its supply chain information, despite previous assurances to the Committee.
3.  The department does not know the full cost of its supply chain routes.
4.  Deliveries for operations in Afghanistan are often late due to delays in receiving goods from suppliers.
5.  The department often holds large stockpiles of supplies on operations, which results in some supplies deteriorating before they are used.
6.  While the department does some benchmarking against the private sector, it does not benchmark its supply chain performance against other armed forces.

The MoD spent at least £347 million on transporting supplies overseas in 2010-11. However, in the six months to November 2010, over 40 per cent of deliveries were 30 days or more overdue.

Speaking on the publication of the report, the Rt Hon Margaret Hodge MP, chair of the Committee of Public Accounts, said the MoD has a duty to make sure that troops serving on the frontline “get the supplies they need, when they need them and in the most cost-effective way”.

She said: “For 25 years, the department has promised this Committee that it would resolve the long-standing problems associated with its supply chain: late deliveries, missed targets and inadequate cost information. Yet these problems persist.

“Deliveries are often late because of delays in receiving goods from suppliers. Last year, over 40 per cent of deliveries from suppliers were a month or more overdue.

“In some cases, delays in receiving spare parts have led to planes and other vehicles being cannibalised to make parts available. Stockpiling to guard against delays has resulted in some supplies deteriorating before they are used.

“A more efficient supply chain could release resources for the frontline. But the department does not have the information to develop more cost-effective ways of running its supply operations.

”The department is now seeking to resolve its information problems through a major initiative, the Future Logistics Information Services project, due to be implemented by 2014.

“However, there is a risk that funding for this project could be reduced as the department seeks to lower spending and balance its overall budget.

“In the meantime, IT systems being used to track supplies will remain at critical risk of failure. If they fail, there could be shortages at the front-line within a month.”