By Laura H. Baldwin
To help the Air strength within the means of altering how it purchases prone, this file stories comparable advertisement region practices and indicates metrics to trace development and refine companies procurement efforts through the years.
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Additional info for Air Force Service Procurement: Approaches for Measurement and Management
This metric is both retrospective—how well the organization performed in the past—and forward-looking—an indicator of how effective the organization will be in shaping corporate purchasing in the future. The commercial firms in our sample tracked internal customer satisfaction using both indirect and direct evidence. The prevalence of so-called “maverick” buying can be used as an indirect measure of internal customer satisfaction. , making travel arrangements on one’s own instead of using the corporate travel department and agreements, potentially leading to increased purchase costs.
Outcome metrics may track whether expected savings or performance improvements were achieved. 5 provides illustrative examples of initiative metrics based on our interviews. Implementation Considerations. Developing initiatives, implementation plans, goals, and their associated metrics is a challenging, time-consuming process. 5 Illustrative Initiative Metrics Example Initiative Potential Process Metrics Potential Outcome Metrics Supply base rationalization Reductions in nonstrategic suppliers Reductions in sole-source situations Savings Responsiveness Customer satisfaction Supplier development Number of people involved Number of projects Savings Improved performance Personnel development Number of training hours per year, per employee Mastery of desired skills 30 Air Force Service Procurement: Approaches for Measurement and Management and supply chain risks are necessary to determine the right approach and goals for supply base rationalization.
Individual purchases must be analyzed to determine the source of the problem. For example, when FedEx’s purchasing 32 Air Force Service Procurement: Approaches for Measurement and Management department became bogged down with paperwork and unresponsive to its internal customers, service users began dealing directly with providers, often without receiving the discounts that FedEx had already negotiated for those services (Jones, 2003). , moving from decentralized to centralized purchasing. To counteract maverick buying, one of our interviewees reports the most serious cases—and their associated costs—to top management in order to obtain management’s support in aligning customers’ actions with the corporate strategy.
Air Force Service Procurement: Approaches for Measurement and Management by Laura H. Baldwin