Report To The Secretary Of Defense - Strategic Sourcing
DEFENSE BUSINESS BOARD WASHINGTON DC
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The Department of Defense is committed to modernizing its management processes to better support its operational mission. With the growing challenge of Federal Government budget deficits, the importance of achieving efficiencies in resources, time and finances is increasing. Similar multi-dimensional challenges are frequently experienced in the commercial sector. The Chairman of the Defense Business Board DBB established the Strategic Sourcing Task Group to evaluate the applicability of strategic sourcing to address the Department s need for increased efficiencies and effectiveness. In the commercial sector, the management philosophy of strategic sourcing drives costs out of the supply chains for both goods and services, while improving related business practices to increase marketplace competitiveness. Strategic sourcing begins with a detailed understanding of an organization s spend on goods and services that is then coupled with better acquisition practices to gain pricing efficiencies. It is a metrics-based innovation process that enhances the organization s mission delivery while driving costs out of the enterprise. Both efficiencies and effectiveness are increased. Specifically, the Task Group was asked to assess the current state of DoD s strategic sourcing initiatives, identify commercial strategic sourcing best practices with potential applicability to DoD, and recommend opportunities to enhance or improve the current strategic sourcing initiatives in the Department. A copy of the official Terms of Reference TOR may be found at Appendix A.
- Economics and Cost Analysis
- Government and Political Science