Early supplier integration in the US defense industry

Abstract

Purpose Each year, the US defense industry outsources nearly $400 bn of domestic goods and services through competitive bids. These procurement activities are quite often complex and specialized in nature because of a highly regulated federal acquisition contracting environment. Ongoing calls to improve supplier management and drive innovation in the defense industry offers an opportunity to adopt Early Supplier Integration (ESI) initiatives that have proven successful in the private sector. This paper identifies critical ESI activities and acquisition practices that the defense industry should adopt to ensure enhanced effectiveness in new product development. Design/methodology/approach Leveraging a conceptual ESI model derived from the research, an in-depth case study of 12 product development projects from a major defense contractor was performed. In the context of project performance, critical ESI activities and moderating effects were assessed. Findings Three key ESI activities have the greatest impact on aggregate project performance: system design involvement, design adjustment opportunities and design for manufacturability/assembly/testability involvement. Use of formal supplier agreements also significantly impacts project performance during the development phase. In addition, project complexity and product team maturity were identified as environment moderators; higher complexity projects tended to negatively moderate the impact of ESI upon performance, and higher team maturity levels tended to positively moderate the impact of ESI upon performance. Originality/value The results provide a sound framework for empirical validation through future quantitative studies and defense industry analyses. In addition, insights and recommendations for interpretation and adaptation of federal acquisition regulations to allow increased utilization of ESI within the defense industry are substantiated.

Swedish public procurement and the defence industry: obstacles and opportunities

“…This has resulted in a lack of long-term collaborative relationships with their suppliers, aligning with Cohee et al. 's findings (2019). Nonetheless, FMV seeks a professional distance from their suppliers, allowing them the flexibility to choose any supplier that meets the requirements for a given quotation.…”

“…This approach has faced criticism for not adhering to the strategic sourcing practices commonly employed in the commercial industry. Consequently, long-term collaborative partnerships between defence industry firms and their suppliers have been notably lacking (Cohee et al. , 2019).…”

Yeni Ürün Geliştirme Sürecinde Bulanık AHP & ORESTE Bütünleşik Yöntemi ile Tedarikçi Seçimi: Savunma Sanayisinde Bir Uygulama

“…Cohee ve ark. yeni ürün geliştirmede gelişmiş etkinliği sağlamak için savunma sanayisinin benimsemesi gereken kritik Erken tedarikçi entgrasyonu faaliyetlerini ve satın alma uygulamalarını tanımlamışlardır [37].…”

A paradigmatic model for shared value innovation management in the supply chain

“…It is clear that to more customer value creation, organizations should interact with them (Valmohammadi, 2017) to meet their needs and values (Baden-Fuller et al , 2018; Zhang et al , 2018; Chiu et al , 2019). Also, the suppliers of the organization have an indisputable role in determining the level of costs of the organization (Johnsen, 2009; Cohee et al , 2019), therefore, cost-cutting activities can be facilitated through interplay with suppliers (Joshi et al , 2018; Shi et al , 2019).…”