Gartner Research

Aerospace and Defense Supply Chain Outlook, 2013

Published: 24 January 2013

ID: G00245401

Analyst(s): Jane Feitler

Summary

A&D suppliers must use collaboration and innovation with U.S. Department of Defense, given the continued reduction of supply chain and logistics O&M dollars in DoD budgets. Gartner reviews the impacts and provides recommendations for how to deal with the cost cutting expected this year.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Suppliers will be hurt the most with cuts in defense spending due to demand changes, causing ripple effects of supplier downsizing and possible exits from the market
  • A&D prime contractors and subcontractors/suppliers will continue doing supply chain and logistics support operations with the same or "more with less" dollars, due to reduced, fiscal-year DoD budgets
  • Ending overseas operations will further strain DoD as well as its contracted storage and disposal burden, with current storage locations and staff already overburdened

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