Integrated Logistics Management System (ILMS)

The Benefit/ Cost Analysis (BCA) shows the ILMS investment yields a positive return with 3.65 times the benefits to cost ratio based on risk adjusted benefits delivered either as cost savings, cost avoidances and productivity enhancements across a ten-year horizon. Costs include Government FTEs, contract services, software, and equipment. This investment has delivered a cumulative $2.3B in benefits to date. Cost savings represent anywhere from $20M to $57M annually based on replaced legacy systems, accurate recovery of revenue from shared-service agencies, strategic sourcing savings (using ILMS Analytics), reductions in assessments for the Department of State furniture and appliance pool and reduction in prompt payment penalties through real-time transportation alerts. ILMS realizes between $10M and $86M in cost avoidances related to reduction in inventories, deferred vehicle purchases, recovery of misplaced assets, and Posts maintenance avoidance of logistics systems on local servers and investment in cuff or purchased applications. Posts also defer procurement of expendables and furniture and appliance inventory based on recommended reorder points for replenishing inventory. ILMS generates significant productivity benefits, approximately $192M a year, for the global logistics workforce by: automating logistics processes, reducing data entry, integrating data to track status of items in a timely and accurate manner, and increasing billing accuracy for shared services throughout the procure-to-pay process. Before ILMS integration, staff duplicated data entry and reconciliation across seven previously separate logistics systems. Recent deployment of RFMS integration delivers productivity benefits to overseas financial management personnel through real-time funds availability checks, automated obligations and automated commitment accounting. Implementation of a system to automate the processing of overseas federal financial assistance replaces a manual paper-driven process. Fleet management resulted in increased automation, efficient reporting, bulk uploading of fuel tickets and flexibility in customer billing. ILMS Analytics delivers $35M in annual productivity benefits by delivering actionable business intelligence via 28 dashboards saving time to locate and transform data from independent reports. Efficiencies related to annual inventory automation will result in $10M in annual savings upon full deployment in FY23.

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