BAE Systems - Creating a new supply chain management strategy to reduce spend by over 10%

The Platform Solutions division of BAE Systems designs and builds avionics products for civil and military platforms. These programmes can take 10 years from concept to entry into service and involve many complex supplier relationships. As part of a continuous drive to meet challenging customer cost targets, BAE Systems needed to further improve the effectiveness of its supply chain.

Drawing on experience from the automotive and consumer industries, PA undertook a high-level review to assess the performance of the supply chain. The review identified new opportunities to reduce re-work, consolidate the supplier base and shorten delivery timescales. We then created a new management strategy to transform the supply chain and give the business the capability to manage sub-contractors more effectively.

As a result, PA identified bought-in cost savings of over 10 per cent and improved the performance of the supply chain.

To find out more about our defence expertise, including supply chain strategy and cost reduction, please contact us now.