The Necessity Of An Effective Strategy For The Department Of Defense Procurement

Building an affordable and efficient strategy for military procurement takes preparation

, review and research. Insights offered by the members of the group play an important role giving an idea about the scope of the initiative. Contribution of the members is important for the development of the overall strategy as well as for assigning roles and tasks for each and every stage of acquisition process. Clarity of project objectives is a must for effective sharing of duties among members. For the development of extremely efficient military procurement systems, connected or shared interest teams will have to work in cooperation through communication between their group members.

Some of the benefits of information sharing include real time decisions and support for reviews, which can ultimately results in savings while maintaining the quality of product or service delivery. Transformation in the operational practices has been brought about by e-procurement function of information technology. E-procurement practices are keys to meeting existing and new targets of performance, continual management and cost savings. The most efficient acquisition levels can be developed with the help of shared IT systems for the measurement of performance, compliance, cost and quality. With exact identification of unsatisfactory performance levels, the improvement process becomes easier.

Computerized e-procurement practices confirm to the project regulations and procurement regulations. Flowcharts and frame works are the best methods of ensuring that the procurement project remains within the budget and confirms to systems criteria. Training for personnel operating the systems certifies accurate selections are administered meeting the ongoing contract management and defense compliances. As far as information routing is concerned, these systems represent the first link in integrated supply chain.

Unrecoverable expenses, overdue deadlines and budget overruns are a result of increased support staff and defense equipment costs in the past year. Upgrading information systems enables real time assessment through automated verification. To make the information system effective, integration of IT systems across relevant projects, recognition of risks and their consequences, and surplus cost tagging is essential. Saving of up to 50 percent have been made possible by the use of automated and real time management methods in defense procurement office.

While cutting costs, compromising the material quality is not an option. Cost reduction and the maintenance of unobstructed flow of material both need to be ensured by the strategy. E-procurements prerequisites should set realistic priorities aimed at linked and related program information sharing, incorporating manageable technology and tradeoffs inspiring practical and controllable costs.

by: Chris Malco

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