An analysis of purchasing systems at the ship level in the United States and Hellenic Navies
Jacobs, Matthew J.
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This thesis analyzes the factors that define the outcome of the purchasing function and evaluates the current performance of the Hellenic and U.S. navies on those factors regarding their purchasing activity at the ship level. The literature review identified six critical factors in that function: a) the identification and balance of the organization’s goals, b) the mix of control measures, c) the existence of fiscal rules, d) the use of appropriate strategies and integrated sourcing teams, e) the level of centralization, and f) the use of purchase tools. The analysis shows that the U.S. Navy is closer to the practices dictated by the theory than the Hellenic Navy, but both navies can make improvements. The Hellenic Navy needs to emphasize the efficiency-related goals, use performance measurement combined with group incentives, loosen the action controls and allow more discretion to its personnel, enhance personal control measures, address the end-of-year spending, move to a more decentralized structure, apply purchasing commodity strategies, and use the modern purchasing tools. The U.S. Navy should establish performance evaluation combined with group incentives, close gaps with tighter control measures, address the end-of-year spending, use integrated purchasing teams, and improve the use of purchase cards and long-term contracts.
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