Reforming the logistic services of any large organisation would be challenging enough. But when that organisation is the Australian Department of Defence (DoD), it's clear that the complexities involved are significant.

The transformation needs to generate long-term efficiencies throughout the entire Joint Logistics Command wholesale logistics network that supports the Australian Defence Force.

In 2010, a significant 5-year Defence Logistics Transformation Program (DLTP) began across Australia with a specific focus on warehousing, distribution and Land Materiel Maintenance. KPMG was chosen to work with DoD in this exciting reform program.

"The KPMG team continue to meet the demanding timeframes of the program with consistently high quality work, and have my strong recommendation for a job well done." 

David McGahey, Program Director
Defence Logistics Transformation Program,
Joint Logistics Command, Department of Defence

With the help of KPMG, the DoD (through their DLTP) aims to put into practice deep reforms across the logistics network and meet the Government’s Strategic Reform Program.

KPMG has worked with the DoD in a range of areas. This has included program and project management, asset/inventory policy, risk analysis, transformation, design and implementation. Additionally KPMG has supported transformation of information, communications and technology enablers including the delivery of a Warehouse Management System.

The transformation program aims to make savings through network consolidation and facilities rationalisation, network modernisation and enhancement, efficient best practice processes, and better use of technology.

Another significant aspect of the DLTP is the implementation of a new business service delivery model through new service provider contracts. This is supported by modern, purpose-built facilities that are also being delivered under the program.

Of course, the importance of a lean, efficient and best-practice logistics program for the DoD isn't just about cost-savings. It's essential in ensuring Australia's defence forces can train, deploy and successfully accomplish their goals.