This report describes the Arroyo Center's study on materiel distribution, presents some initial results, outlines some current activities, and discusses some next steps. In terms of initial results, the report argues that the Army distribution is complex and compartmented, that it is slow, and that the problems affecting it are long-standing. The report further argues that fixing it requires a systemic approach, since past stovepipe approaches have not worked. The report points out that industry has met and overcome many of the challenges confronting DoD by combining technology with reorganization and by establishing high-performance standards to increase performance and productivity, and argues that this approach is a useful model for DoD to explore. It concludes that now is the time to rethink how to provide distribution support to the Army. The report then discusses current activities and next steps in the project.