Australia’s Global Supply Chain Agreement to sustain defence industry

defence

BAE Systems Australia has welcomed the announcement of the renewal of Australia’s Global Supply Chain Agreement by Minister for Defence Industry, Christopher Pyne.

The agreement will allow BAE Systems to continue to provide Australian companies with access to commercial and defence opportunities within its international business.

In 2016, the company had contracts with over 24,000 suppliers and a global spend of almost £9b (AU$15b). In Australia, the company’s supply chain consists of over 1600 companies purchasing goods worth $360m, generating an additional GDP contribution of $210m.

“The diversity of our Australian business across air, land and sea means we are well placed to identify opportunities in the global business and match those with competitive local companies,” said Glynn Phillips, BAE Systems Australia chief executive.

“Opening the door to international opportunities supports the growth of and helps to sustain Australia’s defence industry. Success for Australia’s industry works to promote innovation, improve our ability as a nation to compete globally and generate exports and jobs.”

BAE Systems has also announced its 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 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,” according to BAE Systems.

“It is in the long-term interest of everyone, including purchasing businesses and governments, to have a viable and productive small business supplier base.”