Navy's new 'strategic' approach to supplier management

For decades, the Navy’s relationship with its spare parts suppliers has been relatively straightforward: when the service needs a batch of items, it places an order, and industry fulfills it.

But officials at Naval Supply Systems Command say they’ve come to realize that arms-length transactional approach doesn’t give the Navy nearly enough insight into the health of its supply chain, nor does it give vendors enough of a view into the military’s long-term needs.

Karen Fenstermacher, NAVSUP’s executive for strategic initiatives joins us to talk about how the command is trying to build deeper relationships involving more communication with vendors through its Strategic Supplier Relationship Management program.