Adopting Best Business Practices
Simplifying Payments with the Prime Vendor Program

Simplifying Customer Support, Ordering and Payment with the Prime Vendor ProgramIn 1993 we started an entirely new approach to buying many products. We contracted with world-class suppliers and distributors to let customers order directly in a closed-loop electronic business cycle. Products were shipped directly to customers, simplifying all aspects of supply. The Defense Reform Initiative expanded the prime vendor program in November 1997 to include facility maintenance activities.

Goal: To meet customer maintenance, repair, and operations (MRO) needs quickly at discounted prices.Our goal is to meet customer "maintenance, repair, and operations (MRO)" needs quickly at discounted commercial prices. To date, our efforts have met with huge success.

The Defense Logistics Agency has made available regional MRO contracts for the entire nation – more than six months ahead of schedule!

Performance Scorecard for Prime Vendor ProgramAs the Performance Scorecard for the Prime Vendor Program shows, we’ve come a long way since Fiscal Year 1997, when sales by MRO prime vendors were only $1.7 million dollars.

Today, our expanded prime vendor program covers a range of facility maintenance activities, with sales totaling almost $18 million in Fiscal Year 1998.

We are aiming for steadily increasing MRO prime vendor sales of $29 million in Fiscal Year 1999, $56 million in Fiscal Year 2000 and double that in Fiscal Year 2001. The result? Reduced facility level infrastructure and better value for DoD.

Prime Vendor means: less storage space, reduced warehouse costs, faster deliveries, better products, almost zero loss, rapid credit on returns, and best value for DoDWith Prime Vendor, not only will we reduce our warehousing space and costs, we’ll receive our products faster and much less expensively…simply by doing business better.


Related Sites:
* Prime Vendor


Updated: 16 Mar 1999