The U.S. Army has generated $1.2 billion in savings through the use of a new data-driven, category-based procurement process, said an executive within the service branch.
Rebecca Weirick, executive director of services acquisition at the Office of the Deputy Assistant Secretary of the Army for Procurement, said in a statement posted Tuesday that the "category management" approach supports the service's priority funding. She talked about the concept's use in the Department of Defense and borrowed traits from industry during a panel at a forum hosted by the Association of the U.S. Army.
The service branch classifies goods in 19 categories, with 10 of which covering common products and services such as security and professional support. The remaining nine include weapons, research work, electronics and other more complex goods.
Weirick said category management allows procurement personnel to better determine the most cost-effective sources for certain goods. James Lewis, another procurement official within Weirick's same office, chaired the panel and explained how the approach works.
The Army just started to adopt category management last year, following the U.S. Air Force that has already been using the approach for two years. Army Logistics University plans to launch a new course that would educate non-procurement personnel on category management.
The service branch now plans to use generated savings for modernization efforts.