Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
The Department faces significant challenges replenishing its stocks and delivering new capabilities to meet the...
Conclusion
The Department faces significant challenges replenishing its stocks and delivering new capabilities to meet the threats of a more volatile world. The Department has begun replacing stocks gifted to Ukraine, either on a like-for-like basis or with an equivalent where gifted capabilities are no longer in production or the Department now has different requirements.57 However, we are concerned that replacement is not occurring quickly enough, with, for example, the Department confirming that it will take at least two years to replace NLAW anti-tank weapons gifted to Ukraine.58
Government Response Summary
The department has adapted its supply chains and how they are managed on many critical programmes, published the Defence Supply Chain Strategy, and is implementing a range of initiatives including the creation of a MOD Supply Chain Development Programme, a Supply Chain Contingency Fund, and beginning the implementation of a tool to proactively manage supply chain issues at lower tiers.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2023 6.2 The Covid-19 pandemic and Ukraine crisis has brought into sharp focus the increased demands upon the Defence supply chain and its ability to deliver capabilities to our Armed Forces. 6.3 Working with our industry partners, the department has adapted its supply chains and how they are managed on many critical programmes. 6.4 In tandem with programme level action, the Defence Supply Chain Strategy was published last year which focuses on reviewing and improving aspects of Defence support and logistics. The department is now implementing a range of initiatives in support of this Strategy and the and wider supply chain commitments MOD has made. These including the creation of a MOD Supply Chain Development Programme to support Mid Tiers and SMEs, a Supply Chain Contingency Fund, and beginning the implementation of a tool that enables MOD to proactively manage supply chain issues at lower tiers. 6.5 The department recognises that collaboration with the defence industry is vital for the delivery of these initiatives. The Defence Suppliers Forum, the principal mechanism for MOD- Industry engagement, continues to be fully utilised and is being refocused with support from industry to ensure that we are addressing the most important issues facing UK defence. 6.6 Although these efforts and initiatives are substantial, the scale of the supply chain challenge means that MOD is looking at where it should invest more broadly into our supply chain design and management. MOD understands the need to consider supply chain aspects right from the very early stage of capability planning and aims to improve our ability to create supply chain for future capabilities that better support resilience and other defence priorities.