By Laura H. Baldwin
To help the Air strength within the means of altering how it purchases providers, this document experiences comparable advertisement area practices and indicates metrics to trace growth and refine providers procurement efforts over the years.
Read or Download Air Force Service Procurement: Approaches for Measurement and Management PDF
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Extra info for Air Force Service Procurement: Approaches for Measurement and Management
This type of comparison is possible only in special circumstances such as the merger of two former competitors. A third cost metric is the return on investment (ROI) for procurement strategies, which measures the cost benefits associated with implementation of new aspects of procurement strategies. These can include implementation of new practices and acquiring new skills through training and hiring programs. The ROI is measured as the reduction in expenditures divided by the cost of new procurement activities that led to the realized savings.
However, they were not allowed to change the relevant index midyear. Commercial Firms’ Use of Metrics to Manage Service Procurements 25 service in the firm’s overall expenditures. Often firms use weights corresponding to the individual service’s share of expenditures. Quality The second most often cited category of metrics was quality. 6 Quality is a difficult concept to measure for services. 3). , responsiveness). For ongoing or continuous services such as telecommunications or network access, service reliability may be tracked through the number of service interruptions.
One interviewee told us that, ideally, the cost metric discussed above should benchmark the firm’s costs or changes in costs not against the general market index, but rather against the costs of the firm’s nearest competitors. However, such a comparison is generally Commercial Firms’ Use of Metrics to Manage Service Procurements 23 impossible because information about how much competitors are paying for similar products or services is carefully guarded. This type of comparison is possible only in special circumstances such as the merger of two former competitors.
Air Force Service Procurement: Approaches for Measurement and Management by Laura H. Baldwin