For instance, Renault had done a good job on cutting vehicle development costs, but its operating margin was still subpar because it was uncompetitive in other areas, includinglogistics, distribution and marketing costs, Pelata said.
The law cited by Sheehan is the 1986 Defense Reorganization Act, known as Goldwater-Nichols, which defined the chain of command: from the President to the Secretary of Defense, through the chairman of the Joint Chiefs of Staff, and on to the various combatant commanders, who were put in charge of all aspects of military operations, including joint training and logistics.