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Last week I wrote about the success the Department of Defense is having in leveraging Government eCommerce for the strategic sourcing of its office supplies. What I didn’t mention was the side effect its having on the pricing structures of office supply vendors on the DOD EMALL. In 2004, when the Army was establishing their strategic sourcing [...] Rep. Robert Andrews (NJ) chairs the Defense Acquisition Reform Panel on the House Armed Services Committee. The Department of Defense recently got an earful from the Defense Acquisition Reform Panel (DARP) over its “outdated” acquisition and contracting policies. The panel’s criticisms centered largely on ill-suited “cultural issues” preventing the DOD from moving towards more IT-focused procurement [...] In 2006, the Office of the Secretary of Defense added Strategic Sourcing to the Defense Procurement and Acquisition Policy‘s (DPAP) list of standing initiatives. According to DPAP, strategic sourcing is defined as: . . . a proven best practice [representing] how the DoD will acquire goods and services moving forward. It is the collaborative and structured process [...] A few years ago, a Naval Commander arrived in port at Norfolk, VA needing some repair work done on his ship. It took the Naval Facilities Command (NAVFAC) 14 days to arrange for the required services. The Commander thought this was completely unsatisfactory — why would it take so long to make arrangements for something that [...] I’ve uncovered an interesting article by Chris Stephenson—writer for Manufacturers’ Monthly. It was written a few months ago, but reads like a perfect companion piece to Terryl Benson’s post on supply chain inventory management—featured on this blog a few days ago. Stephenson’s article talks about lean logistics methodologies as a primary improvement model for manufacturers, and how [...] There are several good reasons. It has long been known that traditional procurement processes, whether public or private, are often arduous and time consuming. By establishing long-term purchasing contracts with strategic companies and letting junior buyers place delivery orders against those contacts from an online marketplace, senior acquisition professionals are freed to work on major acquisitions. [...] IT budgets for Supply Chain Inventory Management investments have shrunk considerably during the most recent economic downturn. This is true of both Government and commercial enterprises. Industry research shows that appetites for large scale projects have all but disappeared as enterprises look for targeted and cost-effective solutions that will provide immediate value. Instead of throwing large [...] |
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