Original Date: 08/07/1995
Revision Date: 01/18/2007
Information : Electronic Procurement Process
Lockheed Martin Tactical Aircraft Systems (LMTAS) has been developing an Electronic Procurement Process since 1994 with numerous objectives, among the most important to decrease cycle time and create a central procurement processing capability.
The key to the LMTAS approach is to connect the procurement process with the supplier electronically. Long-term agreements defining part numbers, price, terms, and lead time are established with suppliers. The procurement process is thereby greatly reduced and allows for more efficient manufacturing operations. Once an agreement has been reached, orders are automatically placed for part numbers defined in the terms. If agreements are not developed, the system routes the purchase request to a buyer for exception processing.
The Electronic Procurement Processing system allows LMTAS to partner with the supplier and become a team in satisfying production needs. The overall impact to LMTAS customers is reduced schedule and prices. The Electronic Procurement Process system is presently in confidence testing and will be fully on-line in the fall of 1995.
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