In recent years the Army has sought to improve its purchasing and supply management (PSM) through the introduction of practices such as longer-term contracts, sharing demand forecasts with selected suppliers, and reducing lead times. To enhance these efforts, the Army Materiel Command (AMC) asked RAND Arroyo Center to review its achievements in implementing best PSM practices and assess how its progress compares with that of leading commercial enterprises. Arroyo developed a list of PSM implementation factors and interviewed leaders and personnel at each of the Army's Life Cycle Management Commands (LCMCs) to assess progress in each area. Arroyo found that AMC and the LCMCs are, overall, making progress toward implementation of best PSM practices, but that implementation needs to be more widespread and progress is better in some areas than others. In particular, Arroyo suggests that AMC develop commodity councils and supplier management teams to increase leverage for key commodities and coordinate purchases with leading suppliers.

"Prepared for the United States Army"--T.p. "Arroyo Center"--T.p.

Introduction -- Background on PSM -- Gap analysis methodology and identification of PSM evolution dimensions and factors -- Findings from our analyses and interviews -- Conclusions and recommendations -- Appendix A: interview protocol -- Appendix B: interview findings on PSM organizational dimensions -- Appendix C: data tables for time series analyses -- Appendix D: example of LCMC organizational structures and how they can impede best PSM practices.