Procurement Management Analysis for MOD's Ajax Armored Vehicles

This report provides a comprehensive analysis of procurement management, focusing on the Ministry of Defense (MOD) and the Ajax armored vehicles. It begins with an executive summary and an introduction to procurement management, emphasizing its critical role in organizations, particularly within the MOD. The report delves into the procurement process and cycle, outlining key stages such as planning, requirement definition, tendering, evaluation, and contract management. It examines procurement strategies employed by Ajax vehicles, including risk management and supplier innovation. The core of the report addresses challenges and issues encountered, such as risk mitigation, inaccurate data, technological failures, and project management deficiencies, including noise and vibration issues. The report concludes with recommendations for future procurement projects, advocating for digital contract management, effective logistics, and improved supplier relationships to enhance efficiency and address identified problems. The report is a valuable resource for understanding procurement management in a complex defense context.

Procurement Management

EXECUTIVE SUMMARY
Procurement management is all about managing spend done by organization.
Procurement plays a vital role in organization and even ministry of defense (MOD). The report is
being commissioned to ministry of defense (MOD) Ajax armored vehicles. It is going to provide
details about key issues by applying procurement process and cycle. The final section of the
report has suggested some practices to the Ministry of Defense department to make improvement
in the future procurement projects such as utilization of digital contract management, effective
logistics management and supplier relationships among others. The final section of the report
has suggested some practices to the Ministry of Defense department to make improvement in the
future procurement projects such as utilization of digital contract management, effective logistics
management and supplier relationships among others.

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................4
PROCUREMENT MANAGEMENT AND ITS PROCESS ..........................................................4
PROCUREMENT STRATEGIES ..................................................................................................6
CHALLENGES/ ISSUES/ PROBLEMS ........................................................................................7
RECOMMENDATIONS ON IMPROVEMENT OF FUTURE PROCUREMENT PROJECTS
........................................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................15

INTRODUCTION
Procurement management is all about managing spend done by organization.
Basically, it is a strategic approach which is used by company in order to optimize and
manage spend of firm. In addition to this, it includes acquisition of quality services and
products with a budget from vendors before or on the deadline. The present report will
be based on procurement management and issues relating to it. While managing the
organizational spend the company can easily focus on process relating with order
management. This study is based on Ajax armoured vehicles, built by general
dynamics. With the help of digital battlefield technology this company provide the army
to fight. The vehicles which has been used by the Ajax is fully integrated which helps
soldier to work effectively. This report will highlight some of the major issues relating to
armed forces Ajax vehicles and will provide some recommendations for making
improvement in the future projects of procurements by the ministry of defence.
PROCUREMENT MANAGEMENT AND ITS PROCESS
procurement plays a vital role in organisations and even ministry of defence
(MOD). The reason behind that its key impact has on the overall costs of the system
and business. On the basis of given project relating to procurement management of the
UK's armed forces Ajax vehicles, there has been process of procurement and strategies
implemented in order to deal with issues relating to technology, suppliers and
innovation. The process of procurement is all about selecting, evaluating and creation of
formal contractual agreements (Dey, Roy and Saha, 2019). Plus, it is all about
managing the ongoing supplier relationship of the firm. Ajax armoured use procurement
management technique in order to help with the overall processing of supplier invoices
for payment. By using procurement management, Ajax vehicles is able to manage
accounts payable to complete the source to settle cycle of procurement. As we all know
that in the world of competition where there is increase in complex functions and
dynamics marketplace, firm need to have agile tools and techniques that will support

them to focus on process of procurement. By using procurement management process,
Ajax vehicles is able to improve efficiency (Dear, 2022). While talking about
procurement management, it is essential to discuss about procurement cycle. It is a
series of events that lead up to the final purchase of services and products.
Planning- It is essential for any organization to plan procurement process
effectively so that they can easily meet the consolidating requirements (Křenková,
Rieser and Sato, 2021). This process helps to determine the time frames for their
procurement with the target and goal of having them as and whenever they needed. By
using this stage, Ajax vehicles is able to select and identify the contractors and
suppliers.
Requirement definition- as we all know that procurement requirement begin
with the need and requirement perception. When faced with any kind of problems, Ajax
identifies a requirement which results in the purchase of service and goods. If Ajax need
new equipment and tool in order to launch anything new they can easily focus on
requirement.
Source: (Bag and et.al., 2020)

Tendering or sourcing- It has been said that comparing supplier bids and
compiling them can be very time-consuming for the companies. It is important to collect
all the essential information which can provide proper guidance to Ajax vehicles to have
a good knowledge of market (Mena, Van Hoek and Christopher, 2018).
Evaluation and selection- selecting the suppliers is also important part for the
organization. By using this stage, Ajax vehicle is able to meet the needs of product and
also establish relationships with the vendors so that they can effectively support in
procurement process.
Contract management- basically, it is a process to manage contracts, from the
creation through to executing and termination. It also includes storage and compliance
across all the organizational department. Contract management is being regarded as
the heart of the procurement cycle and process (Bleda and Chicot, 2020). Invoicing,
purchase orders along with reviews all come with the trials. However, this trial does not
always have to be paper. It is essential for the department that they should move their
contract management process to the cloud as in doing, so they will be in a position to
minimize the risks and can maximize the level of transparency. By using this stage the
department can easily enable a centralized as well as easy accessibility system which
can support and save amount of money. Plus, it will help to store the document
information relating to procurement securely.
PROCUREMENT STRATEGIES
It is the strategy which needs to focus on cost effectively acquiring the important
supplies from a vendors list who is going to provide quality goods on time ( Dey, Roy
and Saha, 2019). Supply management is very essential as it has become one of the
major strategic importance for competing in today technological market effectively. With
the help of strategies of procurement the company can easily support the wider strategy
and manage functions.
Ajax's vehicles choose to concentrate on the efforts which can reduce costs and focus
on making process effective (Mena, Van Hoek and Christopher, 2018). At the very first
stage, Ajax manage supplier risk, with the help of this strategy the organization takes an
aggressive turn so that they can manage risks and take it whenever required. After

identifying the requirements and capturing it, one can easily move towards the REP
development. With the help of supplier innovation strategies, Ajax can easily improve
the procurement strategy (Bag and et.al., 2020). Talking about another step that is
centralization of supplier data, it is essential to consolidate the data into a single
database which can offer an improvement in the process of procurement (Buckland,
2020). By using procurement strategies the Ajax vehicles needs to recover the
programme relating to vibration and noise and must resolve it.
As we all know that procurement leaders needs to manage things effectively
relating to procurement process. Ajax's vehicles needs to identify the vendor
management and processing relating to vehicles. The team of the Ajax says that a day
in the department of procurement management is never slow as they have to deal with
various challenges (Bergmann, 2019). Overcoming with the challenges and issues
relating to procurement is money, time and effort. However, there are some issues and
challenges faced by Ajax vehicles which needs to be taken into consideration. For the
growth and achieve positivity the customers have to depend on reliable suppliers. it is
also essential that the department should also maintain a strong association with the
suppliers of the armoured vehicles such as Ajax. Hence, it is said that it is essential to
use negotiation to strengthen the relationship. For dealing this risk it can be done by
development of clear lines of communication along with building of trust (De Giacomo
and et.al., 2019).
CHALLENGES/ ISSUES/ PROBLEMS
Risk mitigation- the risk of supply is always a major issue faced in the market. It
includes cost related issue, quality, market risks, frauds and deliver risks (Ngan and
et.al., 2020). Talking in relation with Ajax, the department was facing financial risks and
delays. Plus, the department transferred risk of inflationary cost growth which has been
caused by delays to GDLS UK. The department also faced issue relating to time
management. This is why they were not able to perform in a better way. The
department has maintained that it will hold GDLS UK to deliver the intended Ajax
capability within the firm price contract. However, the department has not able to proper

maintain the timing and performance risks effectively which has cause performance
issue.
when it comes to managing data we all use effective tools, such as spreadsheets
and many more. While doing the procurement process the organization needs to locate
important information and track it. If not maintain properly it will lead to small mistakes
and omission. Which can create issue relating to incorrect data and vendor relationships
issues. Automating procurement process is the best way to enhance transparency as it
can provide great benefits.
Inaccurate data- as we all know that to make everything managed and sound
procurement process and decisions the company need reliable and accurate
information (Millet and et.al., 2019). Lack of accurate data has hinder the performance
of Ajax vehicle. This is one of the major issue noted which has impacted the bottom line
directly.
As design of Ajax vehicles is based on an existing platform, but the needs of
department have, in effect, made it a bespoke technology which is very difficult than
other armoured vehicles. The major issue relating to Ajax is that department is not able
to understand some components specifications. Due to this designing and technical
changes of the vehicles led to disputes between the department. Therefore,
Management of design changes has led to delays and disputes.
Failure to adopt technology- the another major issue relating to Ajax is
technology. Managing procurement processes requires good and effective technology
(Ajax and Strauss, 2018). If organization adopt technology then they can easily solve
issue and achieve success. In order to future goals, becoming an expert needs fostering
of innovation and digital solutions. It is highly needed to the department to work on their
delivery schedule as well as logistics management. It is important that the department
must agree upon a trustworthy delivery plan to initial operating capability and full
operating capability with General Dynamics Land Systems, UK.
the another issue which has been discovered was the department is not able to
manage things effectively as There were lack of understanding and management issue.
The arrangement was very complex as there were hectic time management. Lack of

time management by seniors has been noted in Ajax which creates problems while
performing task. Therefore, Ajax has not managed the programme effectively.
Due to Weak project controls, Ajax vehicles has also faced issue relating to
project the senior management in the team were not able to make proper control over
task and projects (Fabiani, Naldini and Chiavarini, 2020). Due to this they were not able
to deliver and hence delays in delivery has been noted. The prioritization time and cost
were highly impacted as a result it pressed ahead with the programme without resolving
performance issues. All this has created issue for senior personnel as risks and results
of trails were not being escalated in a timely manner.
As there were issues relating to mechanism it is essential for the department to
make use of mechanism as well as responsibility for the implementation of safety report
which they were lacking behind (Rybnicek, Plakolm and Baumgartner, 2020). The
department found out things relating to safety documentation insufficient. “The Defence
Science and Technology Laboratory” regarding the issues related to potential
compliance with legislative requirements of Ajax vehicles must be taken into account on
right time with no delay as there were delay in working and lack of skills among senior
responsibility the department needs to improve the overall process and strategy of
procurement.
Noise and vibration issues and safety issue- Ajax vehicles department also
faced issue relating to noise and vibration (Qin and et.al., 2020). As we all know that
this is one of the common problems which has been noted on armoured vehicles. Since
2014, DSTL that is defence science and technology laboratory had been warning
defence equipment and support to take action against this noise and vibration. They
raise concern about Ajax potential compliance with legislative needs. Due to lack of
awareness the report which was identified in trails was slow which has created safety
concerns among people. Therefore, safety concern among people have not shared by
the army. In the year 2020, the army's trials team began reporting and raised complaint
about injuries due to vibration issue. But excessive vibration levels and noise issues and
also potential injuries were not being reported or even taken care by the senior
management and responsible owner which has created major issues. Plus, department
is taking major steps to solve the vibration and noise issues but Ajax department

continue to represent a significant risk to the programme. The army's trials did not
provide by the evidence on the cause and not able to identify potential solutions to
operate effectively. However, GDLS-UK has undertaken its own analysis that the Ajax
vehicles are safe to use and army needs to operate with effective methods like hearing
protection (Langford and et.al., 2018). There are some other issues to such as risk
relating to fitting of equipment. There remains a risk that additional work will be needed
in order to resolve problems such as retrofitting solutions for Ajax vehicles.
RECOMMENDATIONS ON IMPROVEMENT OF FUTURE
PROCUREMENT PROJECTS
Procurement plays a very crucial role in almost all the organizations and even
ministry of defence (MOD) because of the key impact it has on the overall costs of the
business and system. As per the given project of procurement Management of the UK's
Armed Forces Ajax Vehicles, there has been different issues being determined in the
procurement process, procurement strategies and key considerations. From the
analysis of the issues and problems, it can be concluded that there are some rooms of
improvement in this procurement process and management in the MOD project
(Gattorna, 2017). The suggestions being offered in the subsequent section are intended
to support the department for creating essential situations for delivering the programme
and in doing so applying the lessons throughout its other armoured vehicle programme.
Some of the key recommendations for making improvement in the future procurement
projects by the ministry of defence are as follows: Delivery schedule and logistics management – It is highly suggested to the
department to work on their delivery schedule as well as logistics management. It
is important that the department must agree upon a trustworthy delivery plan to
initial operating capability and full operating capability with General Dynamics
Land Systems, UK. In conducting this, it is also important that they should take
into account the type of contingencies they are required for resolving the current
problems and coordinate and organise the unidentified risks. They must also
make sure that the timetable of the delivery is realistic. In addition to this, the
department should also evaluate whether the full operating capability target due

can be achieved or not or there is a need of reassessment for the progress of the
programme (Johnsen, Howard and Miemczyk 2014). Safety issues and other risks – It is also suggested to the department to make
that there is a clear mechanism as well as responsibility for the implementation of
the suggestions of its safety report. as a sub-section of this, it is important on the
part of the department to take into account the scope for streamlining the process
of safety trials and to make sure that the duty holders have adequate power to
report as well as escalate the findings. Furthermore, it is also essential on the
part of the department to make sure that the advice offered by the “The Defence
Science and Technology Laboratory” regarding the issues related to potential
compliance with legislative requirements of Ajax vehicles must be taken into
account on right time with no delay and complete recording of all the actions and
activities must be kept. Moreover, right actions should be taken against the
advice as soon as possible (Singh and VermaInventory, 2018). This will support
the department in improving their overall procurement process and strategy. Prioritize supplier relationships – Other than this, it is also essential that the
department should also maintain a strong association with the suppliers of the
armoured vehicles such as Ajax. This can be done by development of clear lines
of communication along with building of trust. It is also necessary to ensure that
both the parties are one the similar page and must have a definitive objective as
well as plan of action to be laid out. Furthermore, the department is also required
to analyse the contract of the supplier on a constant basis for the purpose of
ensuring better performance along with compliance from vendors (Mangan and
Lalwani, 2016). The procurement department of MOD must also search for
different manners of improving their association with them. Improvement in the management information – For the purpose of making
improvement in the dependencies and offering more real tile discernibility in
terms of risks, it is recommended to the department to make enhancement in
their management information. This should also enable all the parties to have a
onetime view on the success as well as development against the standards,

budgets and milestones and will have more clarity on risks and activities when
needed (Cherotich and Ngacho, 2018). Utilizing digital contract management – Contract management is being regarded
as the heart of the procurement cycle and process. invoicing, purchase orders
along with reviews all come with the trials. However, this trial does not always
have to be paper. It is suggested to the department that they should move their
contract management process to the cloud as in doing so they will be in a
position to minimize the risks and can maximize the level of transparency
(Hugos, 2018). Other than this, the cloud will enable a centralized as well as
easy accessibility system which can be save lot of money of the department, at
the same time storing the documents related to procurement securely. There are
number of software available for the contract management in the market.
However, all of them differentiate on the basis of their design as well as services
being offered.
 Integrating the procurement processes – As discussed, the procurement process
being followed by the Ministry of Defence is riddled with approval processes that
can create lot of barriers. Even if the department will automate some of the facets
of the total procurement procedure, they will inevitably hit these gaps in their
systems. This is because of the fact that the armed forces and other managerial
personnel have to transfer the information amid the disparate procurement
systems manually (The Ajax programme, 2021). Quality checking, dispatching
authorization and budget request are also outmoded demand manual action and
thus, the efforts of the firm will stop and start and the sourcing process will turn
into a system of randomly linked flows of work riddled with bottlenecks.
CONCLUSION
Thus, from the above analysis, it can be concluded that the report has clearly
determined and evaluated the procurement process of an MOD procurement project
“UK's Armed Forces Ajax Vehicles”. It has been further found out that there are some
issues and problems in the procurement strategy of the department which needs to be
addressed effectively for the purpose of having effective procurement of further vehicles