Toward a More Efficient Military Exchange System PDF Download

Author: Trevor Neve
Publisher:
ISBN:
Category : Military exchanges
Languages : en
Pages :

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Book Description
"An April 1990 DoD study recommended a full consolidation of the three military exchange systems. Although the Army and Air Force generally concurred with their recommendation, the Navy and Marine Corps challenged the Study's analysis and results. Our independent review of the study and subsequent rebuttals recommend increasing cooperation and coordination among the current exchange systems and integrating some of their functions without a full and immediate consolidation. Expected annual savings from consolidation are $36.6 million with a net present value over 10 years of $104.9 million. Although those savings represent an 8 percent potential increase in annual profits, nonquantifiable issues raise the risks to a level too high to justify full and immediate consolidation. However, some of the first steps on the road to consolidation make good economic sense, whether or not the exchanges actually consolidate. They include increased management cooperation and coordination, a common chart of accounts, and a standard system of merchandise numbering. DoD should not make a decision on consolidation until at least 3 years have passed and the above actions have given decision makers a much better comparison of exchange operations and also time to reach consensus on buying and managing strategies."--Stinet.