Supply management analysis of the Chilean Navy acquisition system
Garbarini Ibáñez, Felipe
Lewis, Ira A.
Nalwasky, Richard M.
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The purpose of this study is to analyze the Chilean Navy acquisition system using the Supply Management Theory elements as a framework. The research describes the Chilean Navy acquisition system based on its current organization, its regulations, and procedures, and the Supply Management foundations act as a theoretical structure to analyze Chilean Navy acquisition systems, whose results are expressed in eight recommendations to improve the Chilean Navy acquisition system. The Supply Management Theory provides a competitive advantage that is applicable to the defense environment in reducing costs, improving combat systems, and increasing efficiencies that accelerate the satisfaction of troop’s requirements. The foundational principles used in the analysis include strategic formulation, performance measurement, supply base optimization and management, and an adequate organizational structure. The Chilean Navy acquisition organization possesses a center-led type organization and follows the Chilean procurement laws, regulations, and procedures to acquire material and contracting services that emphasize the principles of transparency and equality of offers. Those regulations determine that all acquisitions shall be performed under a full and open competition procedure. The analysis results were structured under eight recommendations to improve Chilean Navy acquisition systems and establish the difficulty for the Chilean Navy to establish long-term relationships with suppliers, given regulations that emphasize the principles of transparency and equality of offers.
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