The Aerospace and Defense (A&D) industry value chain involves a complex and diversified ecosystem of players including Original Equipment Manufacturers (OEMs), Maintenance, Repair, and Overhaul (MRO) providers, tier-one suppliers, minority-owned suppliers, N-tiers, and customers including airlines and defense forces. To effectively engage with suppliers and customers across different geographies, A&D companies must have a robust supply chain and procurement strategy to mitigate risks, reduce costs and improve efficiency to meet their financial goals. They also need N-tier supplier visibility to quickly respond to any disruptions or changes in demand. As OEMs ramp up production to meet the demand post-pandemic, challenges related to increasing raw material costs and parts shortages are emerging. The procurement process remains the key to managing the direct spend of A&D companies enabling them to reduce the cost of goods sold and deliver a quality product.
This whitepaper aims to help A&D customers understand how they can effectively manage their complex supply chain and lengthy order lifecycles with a dedicated direct procurement solution, leading to several benefits. HCLTech with its partner ecosystem can enable A&D companies to digitize and transform their direct procurement operations resulting in improved supplier collaboration and meeting their compliance and contract reporting requirements.