Transforming Government Supply Chain Management

While re-arranging my office space, I came across a book on government supply chain management. In 2004, the Honorable Jacques S. Gansler, former Under Secretary of Defense for Acquisition, Technology and Logistics, and Robert E. Luby Jr., Vice President, Supply Chain Management at IBM published a book titled: Transforming Government Supply Chain Management. In the book, among other things, they document two government eCommerce initiatives; DLA’s Medical eCAT and the DOD EMALL.

They state in the book that the Medical eCAT program, which at that time allowed web-based ordering of 650,000 medical items, “saved the DOD customers over 25 % of the product and handling costs  involved in obtaining the items through other means like local purchase.”

In Chapter 15, they document the benefits of the DOD EMALL in the following way.

Customer Benefits:

Assurance of ordering against establish contractual vehicles and compliance with federal regulations
Desktop access to product information and availability
Single point of entry , search and ordering across all electronic sources
Convenient payment mechanisms
Increased buying office productivity

They conclude that web based ordering from commercial distributors using standard eCommerce transactions allows customers to receive products in a fraction of the time at a fraction of the cost.

Though this book was published some years ago, the benefits and cost savings are still true today. In fact, both of these systems still exist and are saving the government money every day. It just goes to show that there are ways for the government to save money and every little bit helps.

Is M-Commerce the Next Big Thing?

Over the last decade, I have steadily watched and participated in the growth of eCommerce.  Like many Americans, I have moved from doing research on line and buying in a brick and mortar store to doing the majority of my shopping online. I regularly pull out my credit card will a small measure of trepidation and make my purchase. I have become a true convert.

However, apparently there is a new game in town, gaining popularity at a rapid rate among young people.  That is mCommerce or mobile commerce. The idea of paying for something with my cell phone is still a little strange for me, but so was eCommerce at first.

So far, mobile shopping has gained more traction overseas than it has in the US. ZDNet reports that the InMobi Mobile Shopping and Mobile Commerce (m-commerce) study, conducted globally between February and March, determined that 80 percent of mobile Web users in Asia-Pacific made purchases via their mobile devices.

A recent article in eMarketer states that there is a gap developing between generations using mobile devices. Nearly twice as many under-35s vs. older respondents agreed that being able to research and buy products on the go was a true convenience. Twenty-nine percentage points also separated the two groups on the matter of using a smartphone or tablet as a research aid while shopping.

The inclination to make impulse purchases also appears to be tied to smartphone shopping. Half of the millennials surveyed admitted to that tendency. However, these spur-of-the-moment shopping sprees aren’t necessarily wallet-busters. Most of these purchases are music downloads and cost less than $5. These charges show up on your phone bill, rather than your credit card statement.

According to a Business Wire survey, consumers expect […]

By |October 3rd, 2011|General|0 Comments|