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Lit review - Essay Example

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The annual cost of logistics acquisition for England’s national defense has been estimated to equal the yearly turnover at the London stock exchange which is quite an amount. Although the expense is believed necessary to keep the nation’s armed services “fully equipped…
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Download file to see previous pages 000 as command center for the acquisition of equipment and supplies of all the armed services – RAF, Navy and ground forces – representing a major restructuring in defense culture and processes. This major command was created precisely to improve logistics acquisition by moving from a functional to a project-based organizational structure. Under the DLO, a total of 144 Integrated Project Teams were organized, one for each type of military equipment and supplies. Each IPT has its own set of assembly staff, logisticians, engineers, contractors and financial team, operating much like a business organization.
Lysons, K. and Farrington, B. (2006)note that the Purchasing and Supply Chain Management (PSCM) concept was started in February 2001 to reduce costs as soon as possible and improve overall performance by addressing the following concerns:
supplies concerns consumable items or those equipment components that can be easily repaired. Even in the US Air Force, the difficulty of finding cheap consumable parts is blamed for 40 per cent of aircraft downtime. To handle this specific problem, the IPTs created the positions of supply Range Managers (RMs) under its wing to exclusively attend to the problem of high procurement costs. In effect, the Range Managers were handed the decision-making task of finding the methods of procurement and selection of suppliers that would translate into cost-efficient defense spending. As decision-makers, the Range Managers are expected to formulate measures that would cut costs and make their organization more efficient and viable. But the task of making decisions for an organization is not as easy as it seems.
Any organization is a technical instrument for mobilizing human energies and directing them toward set goals. Janczak, 2005. The main function of the organization is decision-making which entails planning, evaluating and implementing. These decision-making processes may be disrupted by petty politics and ...Download file to see next pagesRead More
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