Procurement in
Aerospace & Defense
Aerospace & Defense is driven by engineering, reliability, and long-term program continuity. It is characterized by multi-decade programs, highly specialized suppliers, and stringent regulatory requirements. Procurement and sourcing decisions are conservative, with a strong focus on risk management, traceability, and compliance. Pricing is determined by cost justification and contract logic rather than scale, and once established, it tends to remain stable due to technical qualifications, switching barriers, and contractual complexity.
Discover how ivoflow’s spend analytics platform creates value for procurement teams in aerospace and defense.
Typical Procurement Situation
in the Aerospace & Defense Industry
Production Setup
Program-based manufacturing across sites, with long ramp-up and sustainment phases
BOM Structure
Deep, complex BOMs with many engineered, low-volume, high-criticality parts
Supplier Landscape
Highly concentrated, specialized suppliers with strong bargaining power
Pricing Behaviour
Cost-plus, negotiated, or contract-driven pricing, rarely re-benchmarked
Decision Pressure
Extreme focus on supply continuity, compliance, and lifecycle cost over unit price
How ivoflow Creates Value
In Aerospace and Defense Procurement
We automate Saving Levers
for Procurement Organizations
Dual & Multiple Sourcing
The dual and multiple sourcing feature helps diversify your suppliers and identify alternatives to secure your supply chains. This way, you cannot only minimize risks but also make price-optimized decisions for your procurement.
Currency Clawback & Risk
Our tool allows you to keep track of exchange rate fluctuations. It supports you in hedging exchange rate risks in framework agreements with suppliers or in reclaiming currency gains from suppliers.
Localization Opportunity
The tool shows you opportunities to reduce delivery, freight, and customs costs, as well as risks through local sourcing and shorter delivery routes.
Data Security & Hosting
in Aerospace & Defense
Aerospace & Defense organizations operate in environments where data security, sovereignty, and infrastructure control are non-negotiable. Digital solutions must align with strict internal IT policies, regulatory requirements, and long-term program stability.
ivoflow provides flexible, enterprise-grade hosting options designed to meet these expectations:
✓ Multi-environment deployment (public cloud, private cloud, hybrid architectures)
✓ Dedicated enterprise instances with strict access control and encryption standards
✓ On-premise deployment option for organizations requiring full infrastructure control
✓ Data residency configurations aligned with national and organizational compliance requirements
This multi-approach hosting strategy ensures that organizations with elevated security requirements — including those in aerospace and defense ecosystems — can deploy ivoflow within their existing governance and IT frameworks.
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Want to know more
about our procurement solution?
Let us show you how ivoflow can support your business. We are ready to showcase our procurement management system. Together we will find the perfect solution for your company. Feel free to give us a call or e-mail us today!
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