A benchmark study of large contract supplier monitoring within DoD and private industry

Abstract

The purpose of this study is to benchmark DoD, large contract, supplier monitoring initiatives, specifically within the Defense Contract Management Command (DCMC), against 'best practice' private industry procedures. A methodology for identification and selection of 'best practice' firms was developed and acquisition procedures within Ford Motor Company, Motorola, Hewlett Packard, and Intel were reviewed. Commonalities between acquisition initiatives within these companies were identified as follows: early supplier involvement, centralized procurement, supplier monitoring and recognition, reduced number of suppliers, global sourcing, and long term contractor relationships. These initiatives were then compared to DCMC approaches and conclusions drawn regarding differences and recommendations made to improve DCMC procedures. Recommendations included; reducing DoD's supplier base through monitoring and reward, increasing use of long term supplier relationships, allowing global sourcing of products and refocusing on customer quality. Benchmark study of large contract supplier monitoring