COVID-19
Firms manage through supply chain, cash flow disruptions
Disruptions to supply chains and cash flow for supply chain firms have been top concerns that the Defense Department and contractors have spoken of since the coronavirus pandemic froze society.
DOD has raised the progress payment rates contractors receive and worked to speed up many award decisions, while at least some of the large hardware firms we reached out to or heard in recent earnings calls specifically said they are passing those added funds down to their partners.
Here is a roundup of what that group of companies is doing.
BAE Systems Inc.
“From the outset, we’ve recognized that our supply chain would play a vital role in our ability to operate through this global pandemic. As we receive accelerated cash payments from our customers, we are directly flowing that cash to our suppliers,” a spokeswoman for the British defense giant’s U.S. subsidiary told us via email.
“Based on the actions we’ve taken so far, approximately $100 million of incremental cash is reaching our supply chain. We will continue engaging with our suppliers to understand their situation and how we can help to minimize any disruption.”
|
Register to access this item.
Enter your email address. New users, select “I don’t have a password” and click submit. A short registration form will follow. Returning user, enter your password (or click on “forgot your password”). WT Insiders, use your login credentials to access this item.
Can’t register? Check out the answers to our Frequently Asked Questions.
|
|
About the Author
Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at [email protected]. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.
