Save $30 Million by Closing Small Transportation Offices in DoD
About 50% of all freight Transportation Offices in the Department of Defense (about 341) process fewer than 2,400 shipments per year. The largest DoD Transportation Office processes this many shipments in less than 8 hours. These small volume Transportation Offices typically have 1-2 people working in them. By having 1 or more centralized Transportation Offices process shipping documents for these small facilites, ...more »
About 50% of all freight Transportation Offices in the Department of Defense (about 341) process fewer than 2,400 shipments per year. The largest DoD Transportation Office processes this many shipments in less than 8 hours. These small volume Transportation Offices typically have 1-2 people working in them. By having 1 or more centralized Transportation Offices process shipping documents for these small facilites, greater economies of scale can be achieved. The Defense Logistics Agency (DLA), the Defense Contract Management Agency (DCMA), and the NAVSUP Logistics Operations Center already provide this type of remote transportation support, so this is not a new process. Defense Finance and Accounting Service (DFAS) processing costs would also be reduced due to the consolidation of billing accounts and the aggregation of transactions with the same Line of Accounting. About 270-330 jobs could be eliminated with an annual savings of about $30 million in just personnel costs. This same concept could be expanded to non-DoD Federal Agencies as well.
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