By Laura H. Baldwin
To help the Air strength within the strategy of altering how it purchases providers, this file stories similar advertisement area practices and indicates metrics to trace growth and refine prone procurement efforts over the years.
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Additional resources for Air Force Service Procurement: Approaches for Measurement and Management
This metric is both retrospective—how well the organization performed in the past—and forward-looking—an indicator of how effective the organization will be in shaping corporate purchasing in the future. The commercial firms in our sample tracked internal customer satisfaction using both indirect and direct evidence. The prevalence of so-called “maverick” buying can be used as an indirect measure of internal customer satisfaction. , making travel arrangements on one’s own instead of using the corporate travel department and agreements, potentially leading to increased purchase costs.
Even if the absolute level of cost is not of primary concern, the Air Force should be interested in the change in its service acquisition costs over time, relative to the broader market as a whole. As discussed in the previous chapter, the Air Force could obtain market trend data from private sector sources. In addition, Bureau of Labor Statistics indices for specific types of labor can be used as a proxy since labor is a primary input to services. , scale, scope, or quality). Shirley, Ausink, and Baldwin (2004) describe a methodology to control for such changes, to the extent possible, in cost calculations.
Commercial Strategies for Service Procurement 17 affect the size of annual bonuses as well as future opportunities for promotion. Achieving corporate objectives and evaluating commodity council performance depend on the establishment of appropriate measures of success. The next chapter discusses commercial practices in using metrics for the purchase of services. CHAPTER THREE Commercial Firms’ Use of Metrics to Manage Service Procurements Choosing the right set of purchasing and supply management metrics and performance thresholds to provide the information necessary for decisions affecting purchasing strategies and populating those metrics with reliable data are difficult tasks.