Component Acquisition and Single-source Vendor Management Strategy in a Defense Application

Book excerpt: (Cont.) It then explores the current state of vendor relations between NGSB and the supply base. The cost impact for delaying construction due to delinquent valves is identified and presented. Then specific vendor management strategies are examined. This thesis proposes a framework for improving on-time delivery of the component and lowering overall supply chain cost by (1) pursuing strategic alliances with valve vendors, (2) providing greater visibility of demand earlier in the engineering design cycle and (3) using this visibility to drive procurement timing to improve delivery to scheduled need date. The thesis presents a case study in vendor collaboration and provides recommendations. Finally, it discusses the impact of applying the framework to similar components within the New Carrier Construction Program and the potential application of the framework to NGSB's other active programs and shipbuilding locations.