Using a Spend Analysis to Help Identify Prospective Air Force Purchasing and Supply Initiatives PDF Download
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Author: Nancy Y. Moore
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 110
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Book Description
This briefing summarizes research on how the Air Force might use an analysis of its spending to develop better supply strategies, improve its relationships with suppliers, and better manage its supply base. Best practices offer many ways by which the Air Force can improve performance and save money. Such techniques include consolidating multiple contracts with existing providers, selecting the best providers and offering them longer contracts with broader scopes of goods and services, and working with selected strategic partners to improve quality, responsiveness, reliability, and cost. There are many challenges to conducting an Air Force-wide spend analysis, primarily the lack of detailed, centralized data on all expenditures as well as questions about data quality for those data that are available. Nevertheless, the data that do exist point to many prospective sources of savings and performance improvements. The authors analyze the most complete centralized source available on Air Force expenditures, known as DD350 data. Transactions in the DD350 data constitute 96 percent of all Air Force contract dollars spent directly. Among the actions that the Air Force might wish to take are: consolidation of a large number of contracts with similar or the same supplier; grouping contractor ID codes having multiple contracts with the Air Force and many purchase office codes associated with the same contractor, so that the Air Force does not have to pay for the contractor's repetitive bidding and contract administration costs; examining contracts for goods or services available from only one supplier, which gives the Air Force only limited opportunities to gain leverage over such suppliers. Conducting a detailed Air Force spend analysis would require information on the needs, preferences, and priorities of commodity users not available in the DD350 data. Because the Air Force needs to balance prospective savings, performance improvements, risks, socioeconomic and other goals, and other regulations not always present in the private sector, not all best commercial practices may be appropriate for it.
Author: Nancy Y. Moore
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 110
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Book Description
This briefing summarizes research on how the Air Force might use an analysis of its spending to develop better supply strategies, improve its relationships with suppliers, and better manage its supply base. Best practices offer many ways by which the Air Force can improve performance and save money. Such techniques include consolidating multiple contracts with existing providers, selecting the best providers and offering them longer contracts with broader scopes of goods and services, and working with selected strategic partners to improve quality, responsiveness, reliability, and cost. There are many challenges to conducting an Air Force-wide spend analysis, primarily the lack of detailed, centralized data on all expenditures as well as questions about data quality for those data that are available. Nevertheless, the data that do exist point to many prospective sources of savings and performance improvements. The authors analyze the most complete centralized source available on Air Force expenditures, known as DD350 data. Transactions in the DD350 data constitute 96 percent of all Air Force contract dollars spent directly. Among the actions that the Air Force might wish to take are: consolidation of a large number of contracts with similar or the same supplier; grouping contractor ID codes having multiple contracts with the Air Force and many purchase office codes associated with the same contractor, so that the Air Force does not have to pay for the contractor's repetitive bidding and contract administration costs; examining contracts for goods or services available from only one supplier, which gives the Air Force only limited opportunities to gain leverage over such suppliers. Conducting a detailed Air Force spend analysis would require information on the needs, preferences, and priorities of commodity users not available in the DD350 data. Because the Air Force needs to balance prospective savings, performance improvements, risks, socioeconomic and other goals, and other regulations not always present in the private sector, not all best commercial practices may be appropriate for it.
Author: Nancy Nicosia
Publisher: Rand Corporation
ISBN: 0833039857
Category : Business & Economics
Languages : en
Pages : 142
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Book Description
The U.S. Air Force plans to improve procurement through the implementation of additional purchasing and supply chain management practices. To emulate the success of commercial enterprises, the Air Force is establishing commodity councils to develop proactive, enterprise-wide strategies for purchasing key Air Force goods and services. This monograph helps the commodity councils approach the market research task. This monograph is organized around the process for conducting market research. It begins with background information, proceeds through the how-to steps for conducting market research, and ends with recommendations for next steps. The authors highlight lessons learned from both a literature review and from interviews with personnel at leading commercial enterprises.
Author: Nancy Y. Moore
Publisher: Rand Corporation
ISBN: 0833041207
Category : Business & Economics
Languages : en
Pages : 166
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Book Description
Purchased goods and services are an increasingly large proportion of public and private enterprise budgets. Historically, purchased goods and services have accounted for less than a third of an enterprise's budget, but today many enterprises spend more than two-thirds of their budgets on purchased goods and services. Similarly, the Air Force and the Department of Defense (DoD) spend nearly half their budgets for purchased goods and services and an additional sixth on weapon procurement (with only a third going to military and civilian personnel costs). (See pp. 1-6.) Because of the growing importance of purchasing, many enterprises have sought to develop supply strategies for their purchased goods and services. This monograph is intended as a resource for procurement personnel developing supply strategies for the Air Force or DoD. It does not analyze current military procurement practices but rather synthesizes academic, business, and professional literature on developing and applying supply strategies. Its core is a synthesis of nearly a dozen different processes found in the literature.
Author: Mary E. Chenoweth
Publisher: Rand Corporation
ISBN: 0833038893
Category : History
Languages : en
Pages : 99
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Book Description
The authors describe spend analyses they conducted in 2002 for the first phase of a purchasing and supply management demonstration at the Oklahoma City Air Logistics Center for of F100 jet engine spares and repair services and jet engine bearings. The authors detail required data and processes for a spend analysis and discuss the implications of their findings for F100 purchasing and supply-chain management for future spend analyses.
Author: David McKevitt
Publisher: Paragon Publishing
ISBN: 1787920259
Category : Business & Economics
Languages : en
Pages : 300
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Book Description
Perhaps the greatest frustration of procurement students and faculty is the lack of a codified procurement body of knowledge (PBoK). At the same time, the demand for relevant procurement skills has never been greater. The Procurement Playbook consists of ten chapters of essential procurement knowledge and skills. Written by an award-winning panel of experts, consultants and academics, the Playbook distils essential procurement knowledge using a structured pedagogical framework. Organisations are at various stages of their development towards procurement excellence. Existing texts on the market tend to convey procurement through a manufacturing lens or position private and public procurement as separate disciplines. The Playbook helps practitioners organise their thoughts and speak with clarity and confidence about the art and science of procurement. The text is an ideal companion for middle-level executives seeking to acquire procurement skills and provides a blueprint for training and training specialists who design procurement courses. * Achieves a balance between theory and a practical, skill-based approach to the procurement discipline. * Each chapter contains a glossary of terms, key questions and learning objectives. * Ideal for executives looking to acquire procurement skills, the Playbook is interspersed with short cases, research insights and debate points. * Provides a blueprint for training and education specialists looking to design procurement courses. Chapter overview: * Introduction * Perspectives of procurement * Identifying needs and writing specifications * Supplier screening and selection * Market analysis * Supply cost and prices * Outsourcing * Procurement value * Spend analysis * Supplier Performance Management
Author: Jeremy Arkes
Publisher: RAND Corporation
ISBN:
Category : Business & Economics
Languages : en
Pages : 80
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Book Description
However, the model may be useful both with other factors and for estimating the benefits of other initiatives."--BOOK JACKET.
Author: Robert W. Bickel
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 234
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Book Description
This research provides the Air Force with a methodology for evaluating various strategies to improve the procurement of spare parts and applies the methodology to F100 engine parts. The author uses exploratory analysis techniques and system dynamic modeling to gain a better understanding of the effectiveness of various supplier management policies, including identifying those policy levers most effective in improving various measures of interest. The research shows that policy and organizational changes in the purchasing and supply management (PSM) process have the potential to improve effectiveness while maintaining or lowering costs. It also demonstrates that a system dynamic model can be an important contribution to defining, discussing, and understanding the complex interactions among policy levers and outcome measures, particularly in enhancing PSM efficiency and effectiveness.
Author: Nancy Y. Moore
Publisher: Rand Corporation
ISBN: 0833082310
Category : Business & Economics
Languages : en
Pages : 73
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Book Description
The Department of Defense (DoD) may face challenges as it attempts to maintain its goal of spending about 23 percent of prime-contract dollars for goods and services with small businesses and at the same time apply strategic-sourcing practices to reduce total costs and improve performance and efficiency and in ways that will not conflict with small-business goals.
Author: Laura H. Baldwin
Publisher: RAND Corporation
ISBN:
Category : History
Languages : en
Pages : 116
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Book Description
This study examines contingency purchases for Operation Iraqi Freedom made in theater during fiscal years 2003 and 2004 and develops a custom database to determine the extent of contractor support and how plans for the organization and execution of contingency activities might be improved to better support the warfighter in future operations.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The Air Force is under pressure to maintain or improve performance while reducing costs so that it can pay for new weapon system.
