Front page

Lockheed Martin reaches strategic supply chain agreement

Lockheed Martin [NYSE: LMT] signed a new strategic enterprise agreement with Arrow Electronics covering procurement of more than 22,000 electronic components used in advanced technology systems such as missiles, satellites, radar systems, tactical fighter aircraft and unmanned surveillance systems. It represents Lockheed Martin's largest agreement with any single supplier for these commodities, and concentrates procurement of parts covered under the agreement with a leading national franchised distributor, down from 240 suppliers in 2011.

The new agreement allows the company to improve product delivery performance, standardize parts selection and increase internal efficiency and productivity. Lockheed Martin will realize cost reductions based on historical pricing for most electronic components covered under the agreement. Additionally, more than one-third of the components will be delivered to Lockheed Martin with substantial lead time reductions.

The agreement includes a one-year term with an additional one-year option. This marks the first of multiple strategic agreements between Lockheed Martin and key suppliers intended to generate material cost savings and operational efficiencies for our programs and customers.

"We are adapting our supply chain strategy to further improve program execution, drive affordability and assure quality performance," said Dan Pleshko, vice president, Global Supply Chain Operations. "Arrow was selected in a competitive process, and we will use a similar approach to form strategic agreements for other categories of direct and indirect material."

"The changes in the aerospace and defense industry are accelerating, and this agreement illustrates our value proposition," said Michael J. Long, chairman, president and chief executive officer of Arrow Electronics. "As a supply channel partner, we are fully committed to delivering optimal value to a breadth of Lockheed Martin's innovative and sophisticated solutions."

Press release issued by Lockheed Martin Aeronautics Company on June 8, 2012

Enhanced listings:

ND Industries, Inc. - Western Fastener Processing Division ND Industries Ð your trusted supplier for AN, MS, and NAS parts, since 1987

General Plastics Manufacturing Co. For more than 50 years, General Plastics has provided top quality flyaway parts from Air Force One to the new Boeing 787

Mecmesin Limited Mecmesin, leading supplier of competitively priced tensile, compression, materials and torque testing systems for ensuring the quality of aerospace raw materials, sub systems and components

Fairmont Consulting Group Fairmont Consulting Group is pleased to offer a comparative analysis of Boeing and Airbus long-range forecasts. Visit our website to register and receive the full report. www.fairmontcg.com

See our advertising tariff.