Implementing Best Purchasing and Supply Management Practices
Lessons from Innovative Commercial Firms
Because the U.S. Air Force spends over one-third of its budget on nonweapons purchased goods and services, such purchases are a prime target area in which to seek performance improvements and cost savings. Prompted by a need for improved performance from its supply base, the Air Force has become increasingly aware of the advantages of using market research, contract consolidation, supply base rationalization, and other leading purchasing and supply management (PSM) practices in its dealings with suppliers. To aid the Air Force in its PSM efforts, RAND examined how innovative commercial firms implement such practices in their purchases of good and services. After a review of the academic and trade literature, the study team conducted a series of elite interviews using a structured questionnaire to gather primary data from best in class commercial firms. The key findings are that (1) innovative commercial firms are moving to a strategic, goal-oriented approach to PSM, (2) implementing new PSM practices can take a number of years and often requires significant, permanent change throughout the organization, and (3) the Air Force needs strategies to sustain continuity of support for serious PSM change from one leadership team to the next.
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Document Details
- Copyright: RAND Corporation
- Availability: Web-Only
- Paperback Pages: 230
- Paperback ISBN/EAN: 0-8330-3007-8
- Document Number: DB-334-AF
- Year: 2002
- Series: Documented Briefings
Contents
Summary PDF
All Prefatory Material PDF
Chapter One
Introduction PDF
Chapter Two
A Strategic, Goal-Oriented Approach to Purchasing and Supply Management PDF
Chapter Three
Formal Implementation Programs to Support Successful, Permanent Change PDF
Chapter Four
Findings Relevent to the Air Force PDF
Appendix A
Supply Management at John Deere PDF
Appendix B
Skills that Effective Purchasing and Supply Management Personnel Need PDF
Appendix C
Bristol-Myers Squibb Purchasing Initiatives PDF
Appendix D
General Background on Developing and Using Information About Best Commercial Practices PDF
Appendix E
Examples of Strategic Supply-Base Reduction PDF
Appendix F
Interview Questions PDF
Supplementary Materials PDF
The research reported here was sponsored by the United States Air Force.
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