DOD Electronic Mall Implementation Planning

This report is the second of two reports on retail level purchasing practices. In an effort to reduce inventories and increase the use of commercial distribution systems, DoD implemented best commercial inventory initiatives for the purchase and distribution of military supply requirements. DoD expects the initiatives to transform its methods of procuring materiel into advanced private sector business practices. Among other benefits, the transformation should provide retail level organizations lower pricing as a result of leveraged buying power. The initiatives included a Defense Logistics Agency (DLA) electronic catalog pilot program ordering system (April 1997) and a DoD electronic mall (January 1998). The electronic catalog was incorporated into the electronic mall in January 1998 to provide virtual one-stop shopping over the Internet. Defense Reform Initiative Directive No. 43, Defense- wide Electronic Commerce, May 20, 1998, established the Joint Electronic Commerce Program Office (JECPO). JECPO, under the direction and oversight%of the DoD Chief Information Officer, serves as the primary entity to integrate electronic commerce in the DoD business cycle and to manage the DoD electronic commerce program. Orders for the electronic catalog products from April 1997 through January 20, 1999, were about $553,000, and electronic mall sales since inception, including electronic catalog sales, through March 1999 were approximately $40.7 million.