Organizational Concepts For Purchasing And Supply Management Implementation

This report presents a construct for organizing Air Force (AT) acquisition and purchasing activities to execute Purchasing and supply Management (PSM). This design incorporates best commercial practices, information from interviews with Air Force personnel the Air Force Spares Campaign and results of our analysis of the current commercial PSM practices. The Spares Campaign was chartered by the Deputy Chief of Staff for Installations and Logistics to review the Air Force spare parts supply process. The report draws on spares Campaign process-based analysis supporting the decision to implement PSM and suggests organizational options for implementing PSM to better align contracting and logistics functions with process changes in procurement and strategic supplier supply base, and supply chain management. PSM is defined as a strategic, enterprise-wide long-term multi- functional, dynamic approach to selecting suppliers of goods and services and managing them and the whole value network from raw materials to final customer use and disposal to continually reduce total ownership costs, manage risks, and improve performance (quality responsiveness reliability and flexibility). The most basic tenets of PSM, listed below, support the integration of purchasing with supply management: * Supply base management (availability capacity and competitiveness) * Supplier management (performance measurement and improvement and collaboration) * Supply chain management (design and integration).