Recommendation 13

The MoD outsourced its central warehousing and the procurement of some of its commodities—food, clothing, general and medical supplies—to a consortium under the Team Leidos banner28 through the Logistics and Commodities Services Transformation (LCST) contract in 2015. Managed through DE&S, this has been a successful contract overall, and as of May 2023, the MoD forecast that it would achieve financial efficiencies of £403 million by 2028, when the contract is due to come to an end.29 Through the contract, DE&S told us it has increased the agility of its supply operations, gaining greater efficiency in transporting inventory across the UK and Europe, reductions in its carbon footprint of around 28%, and reductions in commodity purchases through better forecasting. DE&S told us that this agility has also been useful in mobilising stocks for Ukraine.30