Airplane engine, aerospace and defense


Driving resilience in aerospace and defense supply chains

Illuminating, transforming, and managing risk

The aerospace and defense (A&D) sector is experiencing dynamic changes that are resulting in a rapidly evolving supply chain ecosystem. Cyber, regulatory, economic, geopolitical, and other shifts continue to drive complexity. They also pose challenges to efforts to mitigate supply chain threats and vulnerabilities and deliver technologically secure products—all while increasing innovations and driving down costs.

Navigating threats and vulnerabilities

Executives are continually seeking strategies to combat a range of threats and issues, including:

  • Potential technical data theft
  • Leakage
  • Infiltration of “unclassified controlled technical information” and “covered defense information”
  • System corruption
  • Sabotage
  • Counterfeit parts
  • Loss of confidence in war-fighting capabilities

In addition, the adoption of the new Defense Federal Acquisition Regulation Supplement (DFARS) cyber security rules has increased the volume of regulatory compliance issues that a broader universe of aerospace and defense companies and suppliers face. In response to these challenges, organizations are considering how best to mitigate risk while meeting onerous compliance and mitigation regulatory requirements throughout the supply chain.

Aerospace and defense companies are under further pressure to deliver stronger financial performance while meeting growing demand for predictability, resiliency, and information security. Amid increasing competition, often from non-traditional sources, the margin for error is thin. Both federal and commercial A&D manufacturers, regardless of their positions in the supply chain, are balancing greater production expectations with cost-reduction mandates.

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Designing, developing, and maintaining a resilient supply chain solution can enable organizations to monitor and quickly respond to today’s dynamic environment.

Aerospace and defense environmental factors

How we can help reduce risk exposure

To help mitigate stress on aerospace and defense supply chains, Deloitte Advisory has developed a comprehensive framework to assist executives with illuminating, transforming, and monitoring risk within their organizations. This framework is tailored to address the specific government cost-reporting and DFARS compliance mandates that A&D companies face while assisting companies with mitigating supply chain risks at all levels within their organization.

Our framework is based on three phases:
  1. Illuminate: By identifying the current operational profile, we capture, prioritize, and quantify risks. Illuminating these risks within a government or aerospace contract environment can facilitate the development of an end-to-end risk profile and risk management plan with prioritized recommendations.
  2. Transform: Leveraging the prioritized recommendations, we execute the implementation roadmap and develop the associated risk mitigation plan.
  3. Monitor: Pursuing the outlined direction from the risk mitigation plan, we implement tools and processes designed to further mitigate and monitor current and emerging risk.

Illuminate monitor transform

In today’s environment, where risks emerge at a rapid pace, managing supply chain risk is a strategic choice for the aerospace and defense sector. A comprehensive, ongoing evaluation of threats to the supply chain can help companies not only mitigate risks but also be the first to capitalize on new opportunities and cutting-edge developments.

Is your supply chain prepared for the future?

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Sharpening metal

Meet the leaders

Glenn Yauch

Glenn Yauch

Principal | Deloitte Risk & Financial Advisory

Glenn is a Deloitte Risk & Financial Advisory principal in the Strategic Risk and Reputation Management practice of Deloitte & Touche LLP. Glenn serves as a lead relationship partner for several globa... More

Nicholas M. Florio

Nicholas M. Florio

Aerospace & Defense Leader

Nick is a Deloitte principal and the chief operating officer for Deloitte Financial Advisory Services LLP. He also serves as the Aerospace & Defense leader for Deloitte Advisory. Nick has more than 35... More