The 1994 and 1995 editions of the Department of Defense Logistics Strategic Plans, directed the Department of Defense (DoD) to significantly reduce logistics response time (LRT). LRT is the time consumed by requisition submission; requisition processing at the inventory control point; requisition processing at the depot (picking, packing, and holding for transportation); transportation; and receipt processing. This report focuses on the transportation segment of LRT. It benchmarks the carrier industry's delivery standards against those contained in the Defense Traffic Management Regulation (DTMR) and in guaranteed traffic (GT) agreements at several Defense Logistics Agency (DLA) depots. We conclude that DoD standards need to be made more stringent to capture the full carrier industry capability and recommend a step- by-step process to improve DoD standards. We also recommend the use of a best- value, rather than low-cost, approach to continuously improve transit time standards in GT agreements. We further recommend conducting a pilot best-value test for awarding GT agreements. The report containS a plan for the pilot test.
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