Manufacturing companies range in size from small shops to multinational conglomerates. But size is not the only differentiator. For example, in our most recent blog, we looked at manufacturing in the Healthcare sector, which is but one of our areas of manufacturing expertise here at Strategic Systems Group (SSG). Within the Healthcare sector, there are further differences and challenges based on whether the goods being manufactured are comprised of pieces and parts, in which case it would be called “discrete manufacturing,” or whether the product is produced based on a recipe, in which case it would be called “process manufacturing.”

Today’s article is about another SSG area’s expertise, namely Aerospace and Defense (A&D) manufacturing. These companies are engaged in discrete, batch, and configure-to-order (CTO) manufacturing. But before we delve into the details, let us first look at how that sector is defined. Then we will take a deep dive into how Strategic Systems Group (SSG) serves the Enterprise Resource Planning (ERP) and Materials Resource Planning (MRP) needs of Aerospace and Defense manufacturers.

Aerospace and Defense

Overview
The Aerospace and Defense Industry serves, as its name represents, two main markets: Aerospace, which largely comprises the production, sale, and service of commercial aircraft, and Defense, which serves the nation’s need for military weapons and systems designed to operate on land, sea, and in the air. Also included in this industry is the production of general aircraft (mostly for business use) and space vehicles, such as satellites, for both military and commercial use.

Markets
Most commercial aircraft are sold to the world’s airlines. Historically, airlines based in the United States have provided the largest market for commercial aircraft. But in recent years, foreign airlines have become a major source of orders.

The United States military comprises by far the largest market for defense equipment, systems, and services in the world. The companies included in this sector serve America’s needs and are often the suppliers most sought by our allies and friends. Aside from political reasons for using U.S. suppliers, American manufacturers, serving the huge domestic defense market, tend to be leaders in the technical aspects of weapons systems.

Economic Impact
To understand how important the U.S. Aerospace and Defense sector is to the U.S. economy, we only need to look at the facts. Historically (in other words, pre-pandemic), the U.S. aerospace and defense industry …

  • Supported more than 5 millionU.S. jobs
    • End-use manufacturers of A&D systems accounted for 35% of those jobs while the industry’s supply chain accounted for the remaining 65%
  • Contributed more than $374 billion to the Gross Domestic Product (GDP), representing 1.8% of the U.S. GDP
  • Generated as much as $929 billion in sales revenue
    • End-use manufacturers of A&D systems accounted for 51% of that revenue while the industry’s supply chain accounted for the remaining 40%
  • Paid out nearly $237 billion in wages and benefits
    • The average wage and benefits of an A&D worker was $92,742
  • Generated $58.1 billion in federal tax revenue and $20.6 billion in state and local tax revenue
  • Shipped $151 billion worth of exports
  • Was the nation’s leading exporting industry
  • Generated a trade balance of $89.6 billion

Also, every ten jobs in aerospace and defense end-use manufacturing support 19 supply chain job.

Sadly, Aerospace and Defense have been one of the industries most affected by the COVID-19 pandemic, particularly the commercial aerospace sector. As these companies are scrambling to cope with the pandemic’s impact on their business, they are looking for ways to streamline operations, reduce costs, increase profits, and compete in a new reality.

Strategic Systems Group offers them a leg up by providing cutting-edge ERP manufacturing software.

Enterprise Resource Planning (ERP) for Aerospace and Defense Manufacturing

There are many reasons why Aerospace and Defense manufacturing clients choose Strategic Systems Group (SSG) to support their Enterprise Resource Planning (ERP) systems.

Understanding
We understand that Aerospace and defense manufacturing organizations are often complex. And because of this complexity, their demands for system functionality are many, including:

  • Finance: A/R, A/P, G/L, financial reporting, and product costing
  • Logistics: Purchasing and sales
  • Inventory control: Raw materials, finished goods, bulk stock, kanban, and materials resource planning (MRP)
  • Product engineering: Bills of material (BOMs), work centers, tasks, and routings
  • Production control: Material issues and receipts, production completion, labor capture, and planning

Expertise
Our clients rely on their seasoned operations teams to artfully use accurate and timely information as well as Intelligent Systems to gain improvements in eight (8) critical cost and performance areas:

  1. Manufacturing throughput
  2. Material shortages / substitutions
  3. Material scrap
  4. Production scrap
  5. Excess and obsolete inventories
  6. Labor and machine utilization
  7. On-time delivery to customers
  8. Machine downtime

Our aerospace and defense manufacturing clients choose Strategic Systems Group (SSG) to implement, enhance, and support their ERP systems because they recognize that we have a passion for using technology to solve business problems. They have chosen us because we have the expertise to make their companies more profitable.

What we do for our Aerospace and Defense Manufacturing clients

Experience
The SSG team has deep experience working with client teams to make their ERP software work for them (instead of the other way around). Whether it is as simple as developing a report to project costs to the U.S. government, as complex as optimizing inventory levels at distribution centers, or as detailed as implementing systems to achieve quality compliance, we truly enjoy working with aerospace and manufacturing companies to help them achieve their business objectives:

  • Efficiency
  • Profitability
  • Growth
  • Defense Federal Acquisition Regulation Supplement (DFARS) Compliance and Remediation
  • International Traffic in Arms Regulations (ITAR) Compliance

Skills
From Supply Chain Management (SCM) to Advanced Planning and Scheduling (APS), and from financial management to quality assurance and operations metrics, the Strategic Systems Group team has the skillset to address all of these requirements within a single, fully integrated ERP software solution.

Depending on your unique needs, we may suggest a Microsoft Dynamics ERP or an Infor ERP solution as the best fit for your manufacturing organization.

Take the next step

You will not find many (if any) partners with the depth, breadth, and longevity (nearly 30 years!) of our expertise in aerospace and defense manufacturing. Please call Strategic Systems Group (SSG) today at (310) 539-4645 or reach out via our contact form!

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