Air Force Commodity Councils: a template for future implementation comparing successful and failed approaches

Abstract

In an effort to align sources with requirements, the Department of Defense has implemented initiatives that mirror industry's strategic sourcing practices. These initiatives include Consolidated Purchasing, Commodity Councils and Regionalization. This project will examine a successful Commodity Council (CC), a failed CC, and one in the early stages of development. We will seek characteristics common to both successful and unsuccessful councils, as well as characteristics that differentiate the outcomes. We will include a brief history of strategic sourcing as a long-term supply-chain management solution in the private sector, the impetus behind AF implementation of strategic sourcing through CCs; associated transactions costs, and finally, the resource management practices necessary to move beyond theory to practical application. The results are illustrated in a case study which will provide a template for successful implementation.