A Gap Analysis of Life Cycle Management Commands and Best Purchasing and Supply Management Organizations

Abstract

Abstract : To help it improve its implementation of best purchasing and supply management practices, the Army asked RAND Arroyo Center to compare the implementation of these practices by the Army Materiel Command (AMC) to those of leading commercial enterprises. We then identify areas where AMC can expand its implementation of best purchasing and supply management practices. To do this, we first reviewed and synthesized the academic and business literature on best purchasing and supply management practices, compiling a list of key characteristics, activities, and practices for each step in the evolution toward best practices. We then categorized what we found into four somewhat overlapping organizational dimensions: functional attributes, activities, practices, and time allocation. We placed each into one of five stages ranging from reactive tactical buying to world-class purchasing and supply management practices. Second, we analyzed Army contracting data on the number of contracts, suppliers, and contract length. Third, we interviewed selected leaders and personnel at each of the Army s Life Cycle Management Commands (LCMCs) those for Aviation and Missiles (AMCOM), Communications- Electronics (CECOM), and Tank-automotive and Armaments (TACOM) to gauge the implementation of best practices, judging these on a five-point scale. From this, we identified areas where AMC could improve its implementation of best practices.