MRP-AMS-Web-Based Supply Chain Management (WBSCM)

WBSCM allows quick reaction to supply and demand changes resulting in better forecasting and planning in the value chain resulting in increased productivity and lower operating costs. The benefits of the WBSCM system have been realized to a great extent. This analysis considers actual realized benefits but the emphasis is on expected future benefits to justify the continued investment in enhancements. The figures below are common savings that were itemized in the initial Financial Profile (9/03) and that remain valid for WBSCM. Savings and efficiencies still anticipated include: Spoilage & Shrinkage reduction: 15-25% Separating transportation from domestic commodity bids savings: 12-15% Order bunching results in 5% premium for commodity processing and 10% pricing premium for transportation. Both can be reduced 20-33% from improved planning & coordination. WBSCM is pursuing several enhancements as enabling technology for the business operations improvements and has scheduled them for the coming years. Once all are implemented, they are expected to realize savings in many process areas. These savings primarily will be realized by the programs, generally for customer agencies and business partners (States, School Districts, Non-Government Organizations, Indian Tribal Organizations) and not the USDA. Benefits are forecast based upon the current WBSCM five-year plan. In addition to the quantifiable cost savings, there are also benefits from WBSCM that have not been included in the cost benefit calculations but that are realizable. These include: Benefits to citizens and business partners Productivity and time savings benefits Free-up staff on routine tasks permitting them to focus on strategic program decisions An automated environment will allow the Department to manage voluntary attrition as the workforce trends toward retirement Easing the burden on customers and vendors, making the government easier to work with has several benefits, including better prices and increased service efficiency. Reporting to OMB, GAO or Congress will be significantly quicker using automated report generation Reduced time spent obtaining requisitions and purchasing authority The latest ROI showed a net present value of $203.33M and a ROI of 144%. The FY21 Operational Analysis noted that WBSCM is meeting its performance goals as identified within the scope of the operational analysis and the investment should remain in steady state or mixed life cycle for foreseeable future.

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