Recommendation 14

The MoD is looking at incorporating the learning from the LCST contract into its Future Defence Support Services (FDSS) programme, which aims to find the best inventory management arrangements when the LCST contract comes to an end.31 Recent events such as the war in Ukraine and the impact of covid-19 have also brought about a reassessment of how the MoD should manage its inventory.32 In its 2022 Supply Chain strategy, it set out that its previous approaches prioritised cost efficiency, which was appropriate for an environment of relative stability, but that these approaches are vulnerable when sudden shocks emerge.33 It is now seeking to ensure greater resilience in its inventory management, which may involve holding greater amounts of inventory in some instances. Ukraine and previous conflicts have also demonstrated the importance of protecting support networks and lines of communication. For example, the MoD stated that throughout its recent operations in Afghanistan, 60% of casualties were among personnel involved in force protection of communication lines.34