The Aerospace & Defense Supply Chain is Complex
Nov 18, 2024
In the Aerospace and Defense (A&D) industry, collaboration isn’t just a buzzword—it’s a necessity. Designing, manufacturing, and maintaining complex systems like fighter jets, naval vessels, or space exploration equipment requires seamless coordination among contractors, subcontractors, suppliers, and government entities. Yet, achieving effective collaboration is often easier said than done.
The A&D sector faces unique challenges that make collaboration both inefficient and costly, hindering innovation and operational efficiency. Let’s explore some of the key barriers that stand in the way.
Legacy systems are a pervasive issue in A&D. Many organizations still rely on decades-old software platforms that were groundbreaking in their time but are now outdated, inflexible, and incompatible with modern tools. These systems often lack the interoperability needed to share critical data across teams and organizations, leading to:
The average A&D company uses a plethora of software applications to manage various aspects of its operations, from product lifecycle management (PLM) to enterprise resource planning (ERP) to supply chain management (SCM). While each tool serves a specific purpose, the sheer number of applications creates:
According to the Harvard Business Review, to execute a single supply chain transaction at a Fortune 500, each person involved switched about 350 times between 22 different applications and unique websites. Over the course of an average day, a single employee would toggle between apps and windows more than 3,600 times.
Compliance with regulations like International Traffic in Arms Regulations (ITAR), and Cybersecurity Maturity Model Certification (CMMC) is non-negotiable in A&D, but it adds a layer of complexity to collaboration. Organizations must:
A&D supply chains are vast and intricate, involving thousands of suppliers across the globe. Managing this network requires precise coordination, but the complexity often leads to:
The cumulative effect of these challenges is staggering. Delays in project timelines, cost overruns, and missed opportunities for innovation are common. A&D companies often find themselves spending more time and money on managing inefficiencies than on advancing their core missions.
For example, a single communication breakdown between a contractor and a supplier can cascade into production delays, increased costs, and strained relationships. Multiply this scenario across hundreds of stakeholders, and the scale of the problem becomes clear.
What’s needed is a unified platform that can replace legacy systems, consolidate applications, and simplify compliance management while offering seamless collaboration across the entire supply chain. A single, integrated solution would provide a centralized hub for data sharing, communication, and project management, eliminating many of the inefficiencies that plague the A&D sector today.
While some organizations have turned to products like Microsoft GCC High, many find that these software options fall short in key areas such as functionality, ease of use, and overall value requiring countless applications to then be added to fill in gaps. The complexity of deploying and managing these systems, combined with their support and cost requirements, often negates their intended benefits. To truly meet the demands of Aerospace & Defense collaboration, a next-generation solution is needed—one that seamlessly balances security with usability, supports real-time advanced collaboration, and drastically improves the industry's unique workflows.
The Aerospace & Defense workflow will never be simple, but with the right strategies and technologies, it can be far more efficient. The stakes are high, but so are the rewards: increased efficiency, reduced costs, and the ability to deliver innovative solutions to ensure the best possible products in the shortest period of time get to market.