Today’s Logistics Transformation   Initiatives: eLOG21
Purpose <ul><li>Describe  e Log21 Initiatives </li></ul><ul><li>Customer  Relations Management </li></ul><ul><li>Strategic...
CRM /Strategic Sourcing eLog21 Campaign Initiatives IT Strategy/Expeditionary Combat Support System (ECSS) AF Smart Ops (A...
<ul><li></li></ul><ul><li>How eLog21 Will Work: The Future Process Model </li></ul>
Customer Relationship Management – Purpose  <ul><li>The primary purpose of Customer Relationship Management (CRM) is to be...
End State Vision –  A Virtual CRM <ul><li>Single point of entry </li></ul><ul><li>Automatic call routing - Transparent to ...
CRM Goal - Customer Satisfaction <ul><li>Centralize and standardize to a single point of service </li></ul><ul><li>Anticip...
CRM Enterprise Relationships <ul><li>Identified as a Command  Critical Capability </li></ul><ul><li>Aligned with Expeditio...
Air Force  Sourcing Model <ul><li>Opportunity  </li></ul><ul><li>Assessment –  </li></ul><ul><li>Goods and Services </li><...
<ul><li>Opportunity Assessment </li></ul><ul><li>Mr. Smith wants to trade in his station wagon and buy a brand new convert...
<ul><li>Current Strategy Review </li></ul><ul><li>Mr. Smith looks up any existing arrangements made by the HOA </li></ul><...
<ul><li>Market Research </li></ul><ul><li>Mr. Smith and Mr. Green obtain potential supplier contact names and numbers from...
<ul><li>Requirements Definition </li></ul><ul><li>Mr. Smith and Mr. Green set up meetings with the HOA and condo board to ...
<ul><li>Sourcing Strategy Development </li></ul><ul><li>Mr. Smith and Mr. Green analyze the potential benefit of adding la...
<ul><li>Strategy Execution </li></ul><ul><li>Strategy Execution </li></ul><ul><li>Mr. Smith and Mr. Green obtain permissio...
<ul><li>Performance Management </li></ul><ul><li>Mr. Smith has a monthly call with each supplier to discuss past performan...
<ul><li>Results </li></ul><ul><li>Neighbors who had used a snow removal service before now see a decrease in cost by $10 p...
Strategic Sourcing <ul><li>Reduction of Total Cost of Ownership </li></ul><ul><li>Pricing Improvements </li></ul><ul><li>I...
Strategic Sourcing <ul><li>Successes </li></ul><ul><li>MSCC  - 100% award to small businesses </li></ul><ul><li>SECC  – Mo...
Benefiting from Strategic Sourcing <ul><li>Strategic Sourcing Benefits </li></ul><ul><li>Reduction of Total Cost of Owners...
<ul><li></li></ul><ul><li>How eLog21 Will Work: The Future Process Model </li></ul>
PSCM Strategic Sourcing: Critical Lessons Learned <ul><li>The upfront investment was tremendous in terms of people and dol...
PSCM Strategic Sourcing: Critical Lessons Learned <ul><li>Overcoming data paralysis early is essential. </li></ul><ul><ul>...
<ul><li>Current policy impacts our ability to implement our sourcing strategies </li></ul><ul><ul><li>Thorough communicati...
<ul><li>Transformation efforts from related/unrelated areas may impact the current organizational construct </li></ul><ul>...
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Today's Logistics Transformation Initiatives:eLOG21

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  • Today's Logistics Transformation Initiatives:eLOG21

    1. 1. Today’s Logistics Transformation Initiatives: eLOG21
    2. 2. Purpose <ul><li>Describe e Log21 Initiatives </li></ul><ul><li>Customer Relations Management </li></ul><ul><li>Strategic Sourcing </li></ul><ul><li>Discuss Implementation Activities </li></ul>
    3. 3. CRM /Strategic Sourcing eLog21 Campaign Initiatives IT Strategy/Expeditionary Combat Support System (ECSS) AF Smart Ops (AFSO21) Change Management (CM) Capability-Based Programming (CBP) Product Support and Engineering <ul><li>Total Life Cycle System Management </li></ul><ul><ul><li>Product Support Camp </li></ul></ul><ul><li>Condition Based Maintenance+ </li></ul><ul><li>Asset Marking and Tracking </li></ul><ul><li>Demand Management </li></ul><ul><li>Operations Safety Suitability & Effectiveness Tools </li></ul><ul><li>Product Life Cycle Mgmt </li></ul>Logistics Enterprise Architecture (LogEA) Portfolio Management Air Force Data Strategy Performance Management ARCHITECTURE & GOVERNANCE Future Financials Workforce Agile Combat Support (ACS)/Assured Connectivity ENABLING PROCESSES AND TECHNOLOGY <ul><li>Integrated Planning System (IPS/APS) </li></ul><ul><li>Purchasing Supply Chain Management (PSCM) </li></ul><ul><ul><li>Customer Relationship Management (CRM) </li></ul></ul><ul><ul><li>Strategic Sourcing </li></ul></ul><ul><ul><li>Commodity Councils </li></ul></ul><ul><li>Strategic Distribution </li></ul><ul><li>Weapon System Supply Chain Management </li></ul>Supply Chain Management <ul><li>WFHQ/ Agile Combat Support C2 </li></ul><ul><ul><li>Log Supt Centers </li></ul></ul><ul><li>AF Common Operating Picture </li></ul><ul><ul><li>I&L COP </li></ul></ul><ul><li>Decision Support Tools </li></ul><ul><li>Global Logistics Support Center (GLSC) </li></ul>Expeditionary Operations and C 2 Maintenance, Repair and Overhaul <ul><li>Field MX & Regional Maintenance </li></ul><ul><ul><li>CONUS CIRFs </li></ul></ul><ul><li>Re-engineering Depot Maintenance (DMT) </li></ul><ul><li>AF Lean Maintenance Enterprise Integration </li></ul>
    4. 4. <ul><li></li></ul><ul><li>How eLog21 Will Work: The Future Process Model </li></ul>
    5. 5. Customer Relationship Management – Purpose <ul><li>The primary purpose of Customer Relationship Management (CRM) is to be the single point of contact to customers in all aspects of logistics support. Commercial best practices identify CRM as a customer-focused and customer-driven approach, running all aspects of business to satisfy customers by addressing their requirements for products, expectations of service levels and by providing high-quality, responsive service. </li></ul>
    6. 6. End State Vision – A Virtual CRM <ul><li>Single point of entry </li></ul><ul><li>Automatic call routing - Transparent to customers </li></ul><ul><li>Virtual Call Center Concept </li></ul><ul><li>Standardized business processes across the Air Force </li></ul><ul><li>Focused on the customer’s view of the supply chain </li></ul><ul><li>Customers receive closed-loop response to requests / queries </li></ul><ul><li>CRM provides proactive and anticipatory services </li></ul><ul><li>Continuously improve processes for efficiency and effectiveness </li></ul>
    7. 7. CRM Goal - Customer Satisfaction <ul><li>Centralize and standardize to a single point of service </li></ul><ul><li>Anticipate customer needs </li></ul><ul><li>Reduce customer wait time for products and services </li></ul><ul><li>Create self-service environment </li></ul><ul><li>Achieve response credibility </li></ul><ul><li>Achieve first-call closure </li></ul><ul><li>Leverage technology </li></ul><ul><li>Provide proactive support </li></ul>
    8. 8. CRM Enterprise Relationships <ul><li>Identified as a Command Critical Capability </li></ul><ul><li>Aligned with Expeditionary Logistics for the 21 st Century (eLog 21) Goals and Objectives </li></ul><ul><li>Designed to be compatible with the Expeditionary Combat Support System (ECSS) </li></ul><ul><li>Envisioned as a key component of Air Force Global Logistics Supply Center (GLSC) concept </li></ul><ul><li>Aligned with Balanced Scorecard (BSC) </li></ul><ul><li>Defined in the Business Process Model (BPM) </li></ul>
    9. 9. Air Force Sourcing Model <ul><li>Opportunity </li></ul><ul><li>Assessment – </li></ul><ul><li>Goods and Services </li></ul><ul><li>Commodity </li></ul><ul><li>Market Research </li></ul><ul><li>Identify requirements </li></ul><ul><li>Review past and present business arrangements </li></ul><ul><li>Conduct TCO analysis </li></ul><ul><li>Current Strategy Review </li></ul><ul><li>Identify qualified suppliers </li></ul><ul><li>Understand industry trends and cost structure </li></ul><ul><li>FAR Part 7* </li></ul><ul><li>FAR Part 10* </li></ul><ul><li>Collect requirements </li></ul><ul><li>Standardize requirements </li></ul><ul><li>Requirements Definition </li></ul><ul><li>Sourcing Strategy Development </li></ul><ul><li>Results </li></ul><ul><li>Customer </li></ul><ul><li>Warfighter </li></ul><ul><li>Taxpayer </li></ul><ul><li>Follow acquisition process </li></ul><ul><li>Use business arrangements </li></ul><ul><li>Strategy Execution </li></ul><ul><li>Administer contract </li></ul><ul><li>Monitor internal performance </li></ul><ul><li>Integrate supplier relationship mgmt </li></ul><ul><li>Conduct quality analysis </li></ul><ul><li>Performance Management </li></ul><ul><li>FAR Part 11* </li></ul><ul><li>FAR Part 6,7,19* </li></ul><ul><li>FAR Part 12, 13,14,15* </li></ul><ul><li>FAR Part 42* </li></ul><ul><li>StrategicSourcing Team </li></ul><ul><li>SB </li></ul><ul><li>Pilots </li></ul><ul><li>Maint. </li></ul><ul><li>Lawyers </li></ul><ul><li>PEOs </li></ul><ul><li>Contracting </li></ul><ul><li>Buyers </li></ul><ul><li>QA Reps </li></ul><ul><li>COTRs </li></ul><ul><li>Finance </li></ul><ul><li>CE </li></ul><ul><li>Proj. Mgr </li></ul><ul><li>Buyers </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>Determine level of competition </li></ul><ul><li>Develop a CONOPs </li></ul>
    10. 10. <ul><li>Opportunity Assessment </li></ul><ul><li>Mr. Smith wants to trade in his station wagon and buy a brand new convertible </li></ul><ul><li>Mr. Smith reviews his annual budget and expenditures </li></ul><ul><li>Snow removal is a significant expenditure during the winter months </li></ul><ul><li>Several people offered to plow his driveway last winter </li></ul><ul><li>Mr. Jones and Ms. White also use snow removal services </li></ul><ul><li>Other people in the neighborhood use snow blowers and/or shovels </li></ul><ul><li>Mr. Smith is a member of the homeowner’s association (HOA) board </li></ul><ul><li>Mr. Smith discusses the opportunity with his friend, Mr. Green from the neighboring condo board </li></ul><ul><li>Opportunity Assessment </li></ul><ul><li>Opportunity </li></ul><ul><li>Assessment – </li></ul><ul><li>Goods and Services </li></ul><ul><li>Commodity </li></ul><ul><li>What did we buy? </li></ul>
    11. 11. <ul><li>Current Strategy Review </li></ul><ul><li>Mr. Smith looks up any existing arrangements made by the HOA </li></ul><ul><li>He and Mr. Green review past contracts and talk to the neighbors about any contracts they may have </li></ul><ul><li>They note the various services used and others that are available </li></ul><ul><ul><li>Driveway snow plowing </li></ul></ul><ul><ul><li>Sidewalk clearing </li></ul></ul><ul><ul><li>Salting/Sanding </li></ul></ul><ul><ul><li>Snow removal </li></ul></ul><ul><li>They calculate the average cost and time for all options: </li></ul><ul><ul><li>Snow blower </li></ul></ul><ul><ul><li>Shovel </li></ul></ul><ul><ul><li>3rd party </li></ul></ul><ul><li>Current Strategy Review </li></ul><ul><li>Current Strategy Review </li></ul><ul><li>FAR Part 7* </li></ul><ul><li>Identify requirements </li></ul><ul><li>Review past and present business arrangements </li></ul><ul><li>Conduct TCO analysis </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>How did we buy it? </li></ul>
    12. 12. <ul><li>Market Research </li></ul><ul><li>Mr. Smith and Mr. Green obtain potential supplier contact names and numbers from various sources </li></ul><ul><ul><li>Phone book/internet </li></ul></ul><ul><ul><li>Past usage </li></ul></ul><ul><li>A group of local teens approach Mr. Smith about being considered </li></ul><ul><li>He and Mr. Green contact the potential suppliers to gauge their interest and ability to perform the various services </li></ul><ul><li>They discuss potential scope and get an understanding of the industry </li></ul><ul><li>Their key findings are: </li></ul><ul><ul><li>Many local part time suppliers with limited scope </li></ul></ul><ul><ul><li>Few regional full time suppliers with full scope and year round services </li></ul></ul><ul><li>Market Research </li></ul><ul><li>Market Research </li></ul><ul><li>Identify qualified suppliers </li></ul><ul><li>Understand industry trends and cost structure </li></ul><ul><li>FAR Part 10* </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>How did we buy it? </li></ul>
    13. 13. <ul><li>Requirements Definition </li></ul><ul><li>Mr. Smith and Mr. Green set up meetings with the HOA and condo board to discuss the potential of sourcing snow removal services </li></ul><ul><li>The attendees discuss and standardize requirements </li></ul><ul><ul><li>Time by which driveways need to be cleared </li></ul></ul><ul><ul><li>Evening salting for driveways and roads to ensure no ice buildup </li></ul></ul><ul><ul><li>Sidewalks must be clear/not slippery at all times </li></ul></ul><ul><ul><li>Walkways and paths to front doors would be a set fee, but on an as requested basis </li></ul></ul><ul><li>Requirements Definition </li></ul><ul><li>Requirements Definition </li></ul><ul><li>FAR Part 11* </li></ul><ul><li>Collect requirements </li></ul><ul><li>Standardize requirements </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>How should we buy it? </li></ul>
    14. 14. <ul><li>Sourcing Strategy Development </li></ul><ul><li>Mr. Smith and Mr. Green analyze the potential benefit of adding lawn services (to ensure year round business) </li></ul><ul><li>They research whether the salting/clearing of the walkways could be performed by the group of local teenagers who had approached Mr. Smith </li></ul><ul><li>They verify participation after showing neighbors, HOA and condo board the business cases on what they would save on snow blower maintenance and shoveling time </li></ul><ul><li>Mr. Smith and Mr. Green decide to request prices/quotes from vendors who have been in business at least two years and received good reviews from at least one household </li></ul><ul><li>Sourcing Strategy Development </li></ul><ul><li>Sourcing Strategy Development </li></ul><ul><li>FAR Part 6,7,19* </li></ul><ul><li>Determine level of competition </li></ul><ul><li>Develop a CONOPs </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>How should we buy it? </li></ul>
    15. 15. <ul><li>Strategy Execution </li></ul><ul><li>Strategy Execution </li></ul><ul><li>Mr. Smith and Mr. Green obtain permission from the HOA and condo board to go forward with requesting prices/quotes </li></ul><ul><li>They have Ms. White, who is a lawyer, review the request he has prepared </li></ul><ul><li>Mr. Smith sends out the request and answers any questions from the suppliers </li></ul><ul><li>Mr. Smith and Mr. Green analyze the responses and prepare recommendations </li></ul><ul><li>They review the recommendation at HOA and condo board meetings </li></ul><ul><li>They make awards to three businesses </li></ul><ul><ul><li>A small local company for roads and drives when it snows under a foot </li></ul></ul><ul><ul><li>A large company for roads and drives when it snows over a foot </li></ul></ul><ul><ul><li>The local teens for walkway clearing </li></ul></ul><ul><li>Strategy Execution </li></ul><ul><li>Follow acquisition process </li></ul><ul><li>Use business arrangements </li></ul><ul><li>FAR Part 12, 13,14,15* </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>Buy it! </li></ul>
    16. 16. <ul><li>Performance Management </li></ul><ul><li>Mr. Smith has a monthly call with each supplier to discuss past performance and any anticipated changes </li></ul><ul><li>Mr. Smith provides feedback if any service levels have not been met (e.g., Mr. Miller’s driveway was not cleared in time for him to go to work) </li></ul><ul><li>The suppliers provide feedback to Mr. Smith (e.g., Mr. Miller had a vehicle in his driveway which obstructed the plow) </li></ul><ul><li>Performance Management </li></ul><ul><li>Performance Management </li></ul><ul><li>FAR Part 42* </li></ul><ul><li>Administer contract </li></ul><ul><li>Monitor internal performance </li></ul><ul><li>Integrate supplier relationship mgmt </li></ul><ul><li>Conduct quality analysis </li></ul><ul><li>* Additional FAR parts may apply </li></ul><ul><li>How well did we buy it? </li></ul>
    17. 17. <ul><li>Results </li></ul><ul><li>Neighbors who had used a snow removal service before now see a decrease in cost by $10 per snow </li></ul><ul><li>Mr. Jones is able to build snow forts with his son instead of spending three hours shoveling his driveway </li></ul><ul><li>Mr. Myers does not have to pay for gas and repairs for his snow blower and is now selling it on eBay </li></ul><ul><li>Ms. Grey does not have to wait for her son to get off of work to come over and shovel her driveway </li></ul><ul><li>The entire HOA and condo neighborhood roads, drives and sidewalks are cleared uniformly </li></ul><ul><li>More neighbors are able to get to work (and arrive on time) </li></ul><ul><ul><li>Results </li></ul></ul><ul><li>Results </li></ul><ul><li>Customer </li></ul><ul><li>Warfighter </li></ul><ul><li>Taxpayer </li></ul><ul><li>How well did we buy it? </li></ul>
    18. 18. Strategic Sourcing <ul><li>Reduction of Total Cost of Ownership </li></ul><ul><li>Pricing Improvements </li></ul><ul><li>Improved Operating Efficiency </li></ul><ul><li>Reduced Operating Expense </li></ul><ul><li>Management of Consumption </li></ul><ul><li>Demand Management </li></ul><ul><li>Improved Focus on Socio-Economic Goals </li></ul><ul><li>Socio-economic Goals </li></ul><ul><li>Benefits </li></ul><ul><li>Maintenance costs </li></ul><ul><li>Operating costs </li></ul><ul><li>Disposition costs </li></ul><ul><li>Supply Chain Savings </li></ul><ul><li>Lower unit price </li></ul><ul><li>Volume rebates </li></ul><ul><li>Payment term discounts </li></ul><ul><li>Eliminate demand </li></ul><ul><li>Reduce consumption </li></ul><ul><li>Encourage substitution </li></ul><ul><li>Change product mix </li></ul><ul><li>PR Processing </li></ul><ul><li>Accounts Payable </li></ul><ul><li>Receipt/Warehousing </li></ul><ul><li>Standardized procurement </li></ul><ul><li>process </li></ul><ul><li>Other non-procurement related operating efficiencies </li></ul><ul><li>Structured analysis of small/disadvantaged business opportunities </li></ul><ul><li>Better understanding of small business spend and market </li></ul><ul><li>Cost of capital/Inventory </li></ul><ul><li>Depot/storage costs </li></ul><ul><li>Transportation costs </li></ul><ul><li>Reduced Lifecycle </li></ul><ul><li>Eliminate “gold-plating” </li></ul><ul><li>Simplify specifications </li></ul><ul><li>Determine industry standards </li></ul><ul><li>Specification Review </li></ul><ul><li>Structured metrics and </li></ul><ul><li>periodic review of contractor performance </li></ul>Performance Monitoring
    19. 19. Strategic Sourcing <ul><li>Successes </li></ul><ul><li>MSCC - 100% award to small businesses </li></ul><ul><li>SECC – Moved 21% from large business to small business </li></ul><ul><li>SECC - Multiple Award to two 8(a) and two (Hubzone) businesses to foster competition and sustain small businesses </li></ul><ul><li>SECC - Improved repair turnaround time and overall system performance by use of Performance Based Logistics (PBL) Contract </li></ul><ul><li>CECC - Reduced ALT for 2 initiatives: from 72 to 10 days and 81 to 20 days, respectively. Decreased total number of contracts from 37 to 14 </li></ul><ul><li>ITCC - Reduced mainframe configurations from 100+ to 4; Configurations adopted by OMB as standard </li></ul><ul><li>PCC - Optimized the Source Approval Process to increase Parts Manufacturer Approval (PMA) process </li></ul><ul><li>ITCC - Reduced the computer systems administrator workload thru standardization </li></ul><ul><li>SECC - Improved 2nd destination charges thru terms and conditions </li></ul><ul><li>SECC - improved MICAP hours 25% </li></ul><ul><li>Sustainmen t: total savings/cost avoidance $261M thru FY11 </li></ul><ul><li>ASCC - Consolidated sole source remanufacturing to leverage spend </li></ul><ul><li>Reduction of Total Cost of Ownership </li></ul><ul><li>Pricing Improvements </li></ul><ul><li>Improved Operating Efficiency </li></ul><ul><li>Reduced Operating Expense </li></ul><ul><li>Management of Consumption </li></ul><ul><li>Demand Management </li></ul><ul><li>Improved Focus on Socio-Economic Goals </li></ul><ul><li>Socio-economic Goals </li></ul><ul><li>Supply Chain Savings </li></ul><ul><li>Reduced Lifecycle </li></ul><ul><li>Specification Review </li></ul>Performance Monitoring
    20. 20. Benefiting from Strategic Sourcing <ul><li>Strategic Sourcing Benefits </li></ul><ul><li>Reduction of Total Cost of Ownership </li></ul><ul><li>Pricing Improvements </li></ul><ul><li>Lower unit price </li></ul><ul><li>Volume rebates </li></ul><ul><li>Payment term discounts </li></ul><ul><li>Supply Chain Savings </li></ul><ul><li>Cost of capital/Inventory </li></ul><ul><li>Warehousing costs </li></ul><ul><li>Transportation costs </li></ul><ul><li>Reduced Lifecycle Costs </li></ul><ul><li>Maintenance costs </li></ul><ul><li>Operating costs </li></ul><ul><li>Disposition costs </li></ul><ul><li>Improved Operating Efficiency </li></ul><ul><li>Reduced Operating Expense </li></ul><ul><li>PR Processing </li></ul><ul><li>Accounts Payable </li></ul><ul><li>Receipt/Warehousing </li></ul><ul><li>Standardized procurement </li></ul><ul><li>process </li></ul><ul><li>Other non-procurement related operating efficiencies </li></ul><ul><li>Performance Monitoring </li></ul><ul><li>Structured metrics and </li></ul><ul><li>periodic review of contractor performance </li></ul><ul><li>Management of Consumption </li></ul><ul><li>Demand Management </li></ul><ul><li>Eliminate demand </li></ul><ul><li>Reduce consumption </li></ul><ul><li>Encourage substitution </li></ul><ul><li>Change product mix </li></ul><ul><li>Specification Review </li></ul><ul><li>Eliminate “gold-plating” </li></ul><ul><li>Simplify specifications </li></ul><ul><li>Alternative products </li></ul><ul><li>Determine industry standards </li></ul><ul><li>Improved Focus on Socio-Economic Goals </li></ul><ul><li>Socio-economic Goals </li></ul><ul><li>Structured analysis of small/disadvantaged business opportunities </li></ul><ul><li>Better understanding of small business spend and market </li></ul><ul><li>Source: Censeo Consulting and AQCA </li></ul>
    21. 21. <ul><li></li></ul><ul><li>How eLog21 Will Work: The Future Process Model </li></ul>
    22. 22. PSCM Strategic Sourcing: Critical Lessons Learned <ul><li>The upfront investment was tremendous in terms of people and dollars. </li></ul><ul><li>It’s a lot harder to buy strategically than tactically </li></ul><ul><ul><li>We didn’t have all the skills needed </li></ul></ul><ul><ul><li>Rationalizing supply base has significant impact on current providers </li></ul></ul><ul><ul><li>Original schedules were optimistic </li></ul></ul><ul><li>Transformation has brought in new stakeholders that we didn’t think about at the time </li></ul><ul><li>External stakeholders can impact your progress </li></ul>
    23. 23. PSCM Strategic Sourcing: Critical Lessons Learned <ul><li>Overcoming data paralysis early is essential. </li></ul><ul><ul><li>Implementation of the Strategic Sourcing Analysis Tool </li></ul></ul><ul><li>Eliminate “tactical buying” through knowledge sharing. </li></ul><ul><ul><li>Compliance Database prevents overlapping contract support </li></ul></ul><ul><ul><li>AFMC/A4 Logistics deployed Air Force Knowledge Now </li></ul></ul><ul><li>Establishing Supplier Relationships are critical. </li></ul><ul><ul><li>Supplier Relationship Management Division has been developed to improve business relationships </li></ul></ul>
    24. 24. <ul><li>Current policy impacts our ability to implement our sourcing strategies </li></ul><ul><ul><li>Thorough communication of requirements to supply base facilitates greater participation from industry </li></ul></ul><ul><li>Quantifying savings. It’s more than dollars spent. It’s about.. </li></ul><ul><ul><li>Reduction in Mission Incapable (MICAP) Hours </li></ul></ul><ul><ul><li>Reduction in number of contracts (administrative costs in time and dollars) </li></ul></ul><ul><ul><li>Reduction in Sourcing time and Improving on-time delivery </li></ul></ul><ul><ul><li>Reduction of amount of inventory on hand </li></ul></ul>PSCM Strategic Sourcing On-Going Challenges
    25. 25. <ul><li>Transformation efforts from related/unrelated areas may impact the current organizational construct </li></ul><ul><ul><li>Difficult to implement standardization </li></ul></ul><ul><li>Unanticipated changes may slow progress </li></ul><ul><li>Implementation of Performance Based Logistics (PBL)…buying performance outcomes </li></ul><ul><li>Changing the culture…eliminating stove-piped thinking </li></ul><ul><ul><li>It’s all about teamwork </li></ul></ul><ul><ul><li>Preventing turning back to the “old way” </li></ul></ul>Strategic Sourcing: On-Going Challenges
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