In the domain of aerospace procurement, the industry's intricate and regulated processes demand efficient supply chain management. To meet the industry's stringent requirements for superior components and materials, on-time delivery, and effective supplier management, aerospace companies rely on a diverse array of procurement tools. Explore the different types of procurement tools employed within aerospace procurement and learn about the notable benefits they have brought to companies operating in this sector.

What procurement tools are most effective for the aerospace industry?

• Electronic Request for Proposal (e-RFP): An e-RFP tool allows aerospace companies to create, send, and manage RFPs electronically. This tool streamlines the procurement process, allowing suppliers to respond quickly and efficiently. Companies like Boeing and Airbus use e-RFP tools like SAP Ariba to manage their procurement processes. According to a report by Everest Group, companies using e-RFP tools can reduce their procurement cycle times by up to 50%.
• Supplier Relationship Management (SRM) Software: SRM software helps aerospace companies manage their supplier relationships by centralizing supplier data, tracking supplier performance, identifying opportunities for improvement, and mitigating supplier risk. Lockheed Martin has implemented a supplier management platform called iSupplier that enables the company to manage its supplier relationships and monitor their performance. The platform allows suppliers to submit invoices electronically, view purchase orders, and communicate with the company in real-time. According to a report by Gartner, companies using SRM software can achieve cost savings of up to 8% through improved supplier performance.
• Automated Purchase Order Management (APOM) Software: APOM software automates the purchase order management process, reducing the manual effort required to create and manage purchase orders. This tool improves order accuracy and efficiency, enabling companies like Honeywell and Pratt & Whitney to streamline their procurement processes.
• Spend Analytics Software: Spend analytics software provides insights into procurement spend by analyzing spend data and enables companies to optimize their procurement strategy, as used by Raytheon. Northrop Grumman uses spend analytics software to manage their procurement spend and identify cost-saving opportunities. According to a report by McKinsey, companies using spend analytics for procurement can achieve cost savings of up to 5% through improved spend visibility and management.

In conclusion, the aerospace industry relies on advanced procurement tools to manage their complex procurement processes. By leveraging a range of procurement tools, companies operating in this sector can optimize their operations, minimize risks, and achieve significant cost savings. As the industry continues to evolve, it is likely that we will see new and innovative aerospace procurement tools emerge, enabling companies to further streamline their operations and gain a competitive advantage in the marketplace.

FactWise is a unified E-procurement platform with a fully integrated suite of procurement products, offered at a fraction of the cost of competitors. Our modular, extensible source-to-pay solution is flexible: it is applicable across industries and can be adapted to diverse procurement organizational setups. The platform is used by global product manufacturing companies to transform their procurement organization via analytics and automation to reduce costs, improve supplier diversity and strengthen supplier relationships, mitigate risk, meet ESG goals and standards, and increase compliance and efficiency. 

At FactWise, we are committed to building truly distinctive procurement software solutions that delight users and provide sustainable positive impact to the organizations we serve. We do this by providing transparency and insights to leaders (31% increase in governance), streamlining and automating processes to improve efficiency (20% increase in efficiency), and driving bottom-line impact by unlocking savings potential (25% cost reduction for direct spend).