Supply chains are optimized

Where prime contractors used to manufacture 80% of deliverables in-house, this situation has now reversed with risk sharing partners managing 80% of the supply chain. To compound this much of the inovation responsibility has also been pushed to partners. Together these factors make it imperative to integrate the diverse perspectives of engineering, commercial, purchase, manufacturing & logistics across the extended enterprise.

Against this background not enough primes can map their entire program supply chain, and primes and subcontractors do not communicate enough about supply chain risks. In these conditions, it is impossible to identify all the potential weak links and opportunities for improvement.

Plexus allows blue chip organizations to map their whole supply chain to understand, quantify and communicate value across their suppliers. Therefore in partnership, they can target cost, lead-time and risk reduction initiatives (some worth USD 7-figures to the bottom line) and design good supply chains from the outset.

They can also satisfy regulatory requirements e.g. Excessive Pass-Through Charges (DFARS 255-215), Offset counter-trade etc and avoid wasteful contracting practices.

Investors will also see an improvement in financial metrics from better supply chain risk management. As rework, costs, and program disruptions decrease, margins and return on invested capital expand and companies are able to reduce working capital. In other words, the value generated from each dollar of program investment will increase.

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