By Laura H. Baldwin
To help the Air strength within the strategy of altering how it purchases companies, this record experiences comparable advertisement zone practices and indicates metrics to trace growth and refine providers procurement efforts through the years.
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Extra info for Air Force Service Procurement: Approaches for Measurement and Management
Other service-specific indices would have to be purchased from private sector sources. For A-76 studies, the Air Force has information about the prestudy costs of the affected activities, the proposed costs of the winning bidder (contractor or MEO), and the post-study realized cost of any outsourced services. These data may not be as detailed and accurate as desired, but they are readily available. However, the Air Force has not been tracking the actual post-study costs of winning MEOs in the same way.
One firm was lucky to have some business units that had carefully tracked expenditures for certain services. The firm used these units as a foundation to build on for future data collection efforts. ____________ 13 We 14 It thank our RAND colleague Nick Castle for making this point. may also be possible and desirable to measure the severity of such violations. Commercial Firms’ Use of Metrics to Manage Service Procurements 35 Reporting Metrics to High-Level Corporate Management Purchasing executives report important information about their organizations’ activities to their firms’ leadership on a regular basis.
As a result of the greater emphasis on materials purchases, there are fewer tools for purchasing and supply management activities for services than there are for materials. For example, cost analyses are reportedly more difficult for services because there are fewer models for the total cost of ownership and fewer formal training opportunities for service acquisition activities. 2 Two important dimensions of this approach that are discussed as best practices in the literature and implemented by the well-respected practitioners who were our interviewees are (1) the use of “commodity councils,” which are centralized cross-functional teams, to develop and implement optimal purchasing and supply management strategies that are linked to corporate objectives for some categories of services and (2) the application of performance metrics.