Present Day Procurement Case Study: The Defense Logistics Agency

Present day procurement is an extremely challenging and highly technical activity due to the very specific requirements that needs to be met. Compliance of requirements requires high technical skills of the employees, use latest technology and presence of best techniques in order to achieve the desired quality at reasonable costs and within the required time period. Government’s contracts are huge, have a lot of technical requirements to be met, have a lot of contractual obligations to be taken care off on account of which many suppliers due, that with regards to their limited resources and skills which refrain from participating. The Defense Logistics Agency can greatly enhance its performance by developing the current vendors to the level
The government contracts will on account of this project be able to receive better quality of products at reduced prices and with faster deliveries. Further they will face little problem in dealing with the suppliers since they will train to adopt professional practices in different areas. The suppliers will benefit since they will face little or no rejection and will be able to reduce their costs on account of which their profits can be increased. Also the performance of their employees will be greatly improved through their development, training and on job assistance. The continuous information sharing program with suppliers will help them to have the latest and best knowledge in their area of business which will enable them to face competition in more effective manner and help them to use their available resources in a more efficient
Supplier technical ability has to be developed through building of long term relationship. For this purpose, there should be professionals present to identify deserving suppliers and then closely work with them for improving their technical ability. Improving technical ability can greatly help to improve supplier performance, reduction in costs, reduce rejections and increase profits. Also there is need to improve technical ability of suppliers so that they can embark on making new products. Improvement of technical ability of suppliers requires aligning the organization’s business needs with that of the buyer (CIPS). In the present day there is new technology and process that is being developed continuously all over the world. Therefore, suppliers need to be educated on the technology and process availability so that they can adopt the same for the purpose of their business improvement. This will help the agency to find suppliers with the best technical ability or service so that they find less problems in finding the suppliers and also they do not face any problem in