BAE Systems on transforming the supply chain

Source: Supply Chain Digital

Date :19/03/2008 09:44:02

With increasing market challenges, BAE Systems is looking to transform its business- proactively building relationships with key clients and suppliers alike. Phil Humphries and Richard Hughes explain.

Written by Lucy Mowatt and produced by Ben Weaver

BAE Systems is renowned for offering products, services and support to the aerospace and defence sector all over the globe. Its Military Air Solutions (MAS) business operates at 23 sites across the UK (eleven of which belong to the RAF) as well as in export markets. Phil Humphreys, Supply Chain and Procurement Director, explains their mission as: “Working as an integral part of the team, delivering effective air power, our aim is to give real advantage to the men and women of the armed forces.” Effectively, MAS exists to provide through-life military air capability through the successful delivery of design, development, manufacture and support contracts with the UK and overseas customers.

Defence Industrial Strategy (DIS)

BAE Systems works very closely with the UK Ministry of Defence to offer service support solutions, manufacture and indeed upgrade capability developments of the weapon systems and aircraft platforms. The MOD wants more value for money from its Supply Chain, as well as more transparency, not just in terms of cost, but also the assurance that this is flowed through the entire supply chain. DIS has served to identify areas of common interest for the UK customer and for BAE Systems.

This will involve a number of key changes in how the company’s relationships work and also what Richard Hughes refers to as the “interdependency” of each level of the supply chain. “We want to ensure that within BAE Systems and in conjunction with our suppliers and customers, that we actually establish a common supply chain language.” Each company has its own ideas about where a supply chain starts and ends, which can, if not addressed, make for complicated relationships and misunderstandings.

March 19, 2008

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