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Six Army programs arrived at a single enterprise resource planning solution independently, then turned better buying power into best buying power by working together to bring the licensing costs down for the unexpectedly popular software.
by COL Harry Culclasure and Mr. Thomas Neff
ategory management is a growing trend in today’s marketplace that focuses on the way companies and organizations consolidate contracts, leverage buying power and drive consistent purchasing practices. For a private company with one mission and one pool of money, category
management seems straightforward enough; however, for DOD, specialized require- ments and initiatives funded with different types of money (for example, procurement, research and development (R&D) and operations and maintenance (O&M) dollars) make category management a major challenge.
By embarking on a unique contracting strategy to buy SAP enterprise resource plan- ning (ERP) software licenses for users to modernize their solutions and execute the business processes using the best planning and management tools, the Army is using an innovative approach to category management, thus turning better buying power into best buying power for six of its ERP programs.
A NEW WAY OF DOING BUSINESS Under the direction of the Program Executive Office for Enterprise Information Sys- tems (PEO EIS), ERP software, which consists of a set of integrated applications, has transformed the way the Army does business by creating a unique enclave of shared data, detailed reporting, improved asset tracking and financial auditability. Tis
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