BAE Systems has set out a practical route for small firms hoping to win defence work, with a senior executive urging would-be suppliers to stop cold-calling and instead build a targeted, compliant approach.
Speaking at the Scottish Defence Procurement and Supply Chain Summit in Glasgow, Stuart Justice, engineering director at BAE Systems Naval Ships, said smaller businesses were essential to the resilience of the group’s supply network. He argued that SMEs bring flexibility, ...
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imagination and specialist knowledge at a time when defence programmes are under pressure to move faster without weakening standards.
Justice said the company’s naval business works with more than 3,000 SMEs in its tier one supply chain, with the number rising further down the chain. BAE Systems has also said on its supplier pages that it recognises the role of smaller firms in keeping supply chains healthy, agile and vibrant, and that it works to remove barriers to trade wherever possible.
The first lesson for firms interested in defence, he said, was simple: use the proper supplier channels. He warned that approaching senior managers directly was rarely effective and said companies that are not already approved cannot be contracted, however strong their product may be. He added that repeated unsolicited calls were common, but that the formal route gave firms the best chance of being assessed fairly.
Justice also stressed that first impressions matter. Businesses should be specific about what they offer, understand the part of the company they want to work with and explain why their capability fits. In his view, defence opportunities run from basic components such as fasteners through to complex systems including turbines and gearboxes, so suppliers need to know exactly where they sit in that landscape.
He set out a series of baseline requirements for prospective suppliers, including ISO 9001 quality accreditation, public and product liability insurance, counter-feight prevention controls, cyber security compliance, business continuity planning and adherence to health and safety law. Export controls, he said, are also critical because of the nature of defence work.
Among the areas where BAE Systems Naval Ships is actively seeking support are marine autonomy, modularity, DevOps, platform evaluation, process analysis, commodities, advanced tools and coatings. Justice said those requirements reflected the pace of change across defence procurement, where lead times that once ran to months or years now need to be measured in weeks.
The backdrop is a major shipbuilding programme on the Clyde. BAE Systems Naval Ships employs about 6,000 people there and is building five Type 26 frigates, with work on a sixth expected later this year. The company says it has invested more than £500 million in modernising UK shipbuilding capability and has more than 850 graduates and apprentices in the business, with the intake growing by over 200 each year.
In its supplier guidance, BAE Systems also says it is committed to prompt payment, supplier development and the protection of intellectual property, and that it invites firms to join its CIPS Aerospace & Defence academy training programme. For SMEs, the message from Glasgow was clear: there is room in defence supply chains, but only for those willing to do the groundwork first.
Source: Noah Wire Services
