According to a report by Moody's, the 2018 outlook for Defense Manufacturing looks favorable. That same report points out the industries looming supply chain problems. The Pentagon is implementing reforms in acquisitions that will put pressure on defense contractors to assume more risk. The Aerospace Industries Association discusses the need to lower cost, increase efficiency, deliver products on time and manage risk instead of being risk averse.
The above problems will by necessity affect other areas in the defense manufacturer's overall process. Many defense manufacturing companies are looking to Enterprise Resource Planning. A robust ERP solution can effectively solve these issues and more.
The best ERP software will provide several capabilities. Most defense manufacturing companies are compartmentalized, which can be inefficient and cumbersome. ERP can link business processes together, while recognizing need to know concerns, but still provide for the free flow of information. These processes include manufacturing, process and project management, procurement, billing, human resources, etc. Enterprise Resource Planning helps streamline procedures, cut cost and eliminate duplication. ERP solutions present a core system, with a common face to all users, easing tension and improving productivity.
For Defense Manufacturers the ERP solution handles the requirements unique to the production of complex equipment. Premier ERP software can be customized, accessed remotely and provide a multitude of reports.
Considering chain issues, strong Material and Production Planning are an absolute must. Life Cycle Management is another key component essential to ERP software, because defense products often have very long service lives. The ERP Business Operations suite is also vital, due to the changing nature of Department of Defense policy.
Engineering Resource Planning is proving to be an important solution for large, medium and small defense manufacturers. Visibility is a fully integrated ERP solution that eliminates the most pressing concerns of the defense manufacturing industry.