The Prerequisites of an Efficient Military Procurement Strategy

in Procurement

 

For the development of an economical and effective procurement strategy for the military, proper study, planning and revaluation are critical. In order to understand the scope of the initiative, it is essential to consult group members. Participants not only contribute to the development of the whole strategy, but also to the categorization of the responsibilities and duties into different phases. 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.
 
Information sharing makes efficient delivery of products and services possible at a lower cost by offering review support and real time decision making abilities. The e-procurement functions of information technology have had a significant impact on the military procurement systems. The solution to cost reduction, continual management and attainment of the present and future performance targets lies in e-procurement practices. The most efficient acquisition levels can be developed with the help of shared IT systems for the measurement of performance, compliance, cost and quality. The systems identify immediately substandard levels of performance, pinpointing with precision areas of improvement.
 
Computerized e-procurement practices confirm to the project regulations and procurement regulations. Adherence to the system criteria and budget can be ensured with flowcharts and frameworks. Appropriate training for the staff in question can guarantee defense compliance. In the integrated supply chain, these systems are classically the first footstep.
 
The main reason for budget overruns, inability to meet the deadlines and unrecoverable costs over the past year is the rise in military equipment and support employee costs. Updating information systems allows real time estimations and reviews with computerized verifications making use of costs assessments. Only if the information system is integrated across similar operations, has the excessive costs tagged, and risks and their consequences recognized, it will be effective. In some cases, more than fifty percent savings for department of defense procurement may have been realized making use of computerized and real time management examinations.
 
While it is important to decrease costs, low quality material is not acceptable. The procurement strategy should be such that it allows smooth procurement at a lower cost. For an e-procurement system to be effective, it should allow information sharing between related programs, implement practical cost control measures and incorporate manageable technology.

 

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Chris Malco has 1 articles online

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The Prerequisites of an Efficient Military Procurement Strategy

This article was published on 2011/11/01