Both Australian subsidiaries of global primes BAE Systems and Northrop Grumman have renewed their Global Supply Chain (GSC) agreements with the Commonwealth for an additional three years.
The renewal of the GSC agreement enables them to continue working with the Commonwealth to facilitate military and commercial opportunities for Australian companies within their respective global supply chains. The agreements will also improve the competitiveness of Australian suppliers in the global aerospace and defence market for future projects.
“The agreement is of mutual benefit as it advances the government’s objectives outlined in the 2016 Defence White Paper and Defence Industrial Policy Statement, and helps Northrop Grumman to continue efforts to strengthen our supply chain with world-leading Australian suppliers and technology,” Ian Irving, chief executive, Northrop Grumman Australia said.
CEO BAE Systems Australia Glynn Phillips said the company has one of the nation’s largest defence supply chains and a long and successful history of working closely with Australian suppliers, to open up both local and international opportunities.
“Since its inception in 2012, our Global Access Program has recorded a number of export successes for Australian businesses including military vehicle restraint systems, ship evacuation equipment, precision components for the aerospace sector, armored steel and various software analysis tools.
“15 Australian businesses have directly benefitted from the Global Access Program by securing export contracts and over 100 companies have taken advantage of various training programs, overseas trade missions, and international networking events facilitated by the program.
Phillips confirmed the company's commitment to the Australian Small Business Supplier Payment Code launched by the Business Council of Australia. This is a voluntary, industry-led initiative that recognises the importance of prompt and on-time payment for suppliers and the need for a set of best practice standards.
“Prompt and on-time of payment is particularly important for small business suppliers, as it means better cash flow and working capital which strengthens their viability and ability to grow and create jobs,” he said. “It is in the long-term interest of everyone, including purchasing businesses and governments, to have a viable and productive small business supplier base.”