Source-to-Pay and the Aerospace & Defense Challenge

Posted by: Do Lee May 17, 2017 Supply Chain Management

The full procurement lifecycle is complex. Across industries, decision-makers see that improvements to their supply chain processes can lead to reduced costs and improved efficiency. Many have turned to Source-to-Pay solutions to reach business goals including:

  • Global spend visibility
  • 360-view of purchasing activities
  • Improved process efficiency
  • Reduced costs
  • Improved supplier performance
  • Faster, better-informed decisions

Industries from retail to hospitality have enjoyed these benefits of automated, cloud-based Source-to-Pay solutions for years. But the Aerospace & Defense industry (A&D) has largely been clinging to traditional procurement methods, in which information is siloed. It is difficult to manage compliance, analyze spend, or realize sourced savings.

So what’s stopping the A&D industry from adopting a cloud-based Source-to-Pay solution and achieving these business goals?

The answer: Compliance and security requirements.

Cloud-based Source-to-Pay products typically do not comply with the regulations that the A&D industry demands. In the A&D space, identity and data security are top priorities. This is particularly true for controlled unclassified information (CUI) and covered defense information (CDI) as described in NIST SP 800-171 and required in Network Penetration DFAR 252.204-7012.

In addition, Aerospace & Defense providers are subject to data export controls and must adhere to strict International Traffic in Arms Regulations (ITAR). These regulations, plus general security concerns around transmitting intellectual property in the cloud, have hindered adoption of Source-to-Pay solutions.

Unfortunately, this means that A&D has been missing out on the advantages of cloud-based Source-to-Pay. For example, Source-to-Pay allows a company to bridge the silos of traditional procurement. It also handles multiple supply chain activities from one solution: compliance management, spend analysis, and more. So companies can gain spend visibility across the organization, improve cash flow, and manage the purchase order lifecycle from end to end.

There hasn’t been an option that coupled best-in-breed Source-to-Pay functionality with stringent A&D requirements—until now. Exostar has leveraged its position as a trusted partner with deep experience in the A&D marketplace to bring “Secure Source-to-Pay” to this strictly regulated and security-conscious sector. How? By understanding where data resides, how it’s protected, and who can gain access.

The solution delivers:

  • Direct and indirect spend consolidation for complete visibility
  • Seamless integration into backend systems
  • Regulatory compliant data and identity security (i.e. NIST SP 800-171)
  • Flexible and modular deployment to meet your business needs

Exostar provides A&D manufacturers a new option to consider when thinking about adding efficiency, visibility, cost savings, and business value to the supply chain. And with NIST SP 800-171 DFAR deadlines fast approaching, the time to consider Secure Source-to-Pay options is now.

Learn more about how Exostar’s Secure S2P solution is changing the way A&D companies conduct their sourcing and procurement activities. Download our on-demand webinar: “Best Practices in A&D Sourcing and Procurement: Achieving Maximum ROI with 800-171 Compliance.” Alternatively, please contact us at