1. Northrop Grumman Supply Chain Working with our Suppliers
Michael Forbes
Northrop Grumman Supply Chain Working with our Suppliers
Defense Industry Initiative (DII) Best Practices Forum
June 6, 2013
Michael Forbes, CPSM, MCIPS
Corporate Director Supply Chain

2. Northrop Grumman Today
Leading global security company
$25.2 billion sales in 2012
$40.8 billion total backlog at the end of 2012
Leading capabilities in:
Unmanned Systems
Cybersecurity
C4ISR
Logistics
Focus on Performance

3. Four Operating Sectors at a Glance
Aerospace Systems
Electronic Systems
Information Systems
Technical Services
Airborne Ground Surveillance / C2
C4ISR
Directed Energy Systems
Electronic Combat Operations
Environmental & Space Science Satellite Systems
Global / Theater Strike Systems
ISR Satellite Systems
Large Scale Systems Integration
MILSATCOM Systems
Missile Defense Satellite Systems
Naval BMC2
Strategic Space Systems
Unmanned Systems
Air Defense Systems
C4ISR Networked Systems
EO/IR Targeting & Surveillance
Marine & Undersea Systems
Navigation & Positioning Systems
Propulsion & Power Generation
Radar Sensors & Systems
RF/IR Countermeasures
Space Sensors
Command & Control Systems
Communications
Cybersecurity
Enterprise Systems and Security
Federal, State/Local & Commercial
Health IT
Homeland Security
Intelligence
Intelligence, Surveillance & Reconnaissance Systems
IT/Network Outsourcing
Aircraft Subsystem/Component Sustainment & Modernization
Aircraft System/Platform Sustainment & Modernization
Defense and Government Services
Ground Vehicle Reconstitution
Integrated Logistics and Modernization
Irregular Warfare/Quick Reaction Capability
Live, Virtual and Constructive Domains
Nuclear Security Services
Technical and Operational Training Support
Training Solutions

4. Northrop Grumman Vision
Be the most trusted provider of systems and technologies that ensure the security of our nation and its allies

5. Northrop Grumman Products

6. How to Become a Northrop Grumman Supplier
Become Familiar With Northrop Grumman Products & Reqts.
Potential Supplier
Input Company Information into Northrop Grumman Potential Supplier Database
Submit Letter of Introduction and Company Literature to Socio-Economic Business Office
Northrop
Grumman
Socio-Economic
Business
Office
Advise Supplier on
Potential Subcontract
Opportunities
Forward Materials
to Purchasing/
Engineering/Other
Using Organizations
Evaluation
Direct Any Questions to and Keep In Contact With:
Northrop Grumman Socio-Economic Business Office or Specific Procurement or Technical Department

7. Basic Marketing Research
Do Your Homework
Basic Marketing Research
How is the Company Structured?
What are the Principal Products?
Does This Company Buy What I Sell?
How Does the Purchasing Process Work?
Could my company’s capabilities fit a special niche within this company?
Logistics / Timing
Proximity of Supplier to Company?
Who is My Competition?
Has the Company Received New Business Contracts?
When Will Materials / Services be Needed?

8. Supplier Information Required
Type of Business
Number of Employees
Financial Profile
Past Performance
Principal Product or Service
Areas of Product Interest
Description of Facilities/Equipment/Technical Capabilities
Quality Assurance Standards (ISO Certification, Lean Principles, Six Sigma)
NAICS Codes
Certifications (HUBZone, Service-Disabled Veteran)

9. How Do We Locate Suppliers?
Outreach Events
Prospective Supplier Database
Recommendations from:
Company Protégés
Existing Suppliers
Commodity-Specific
Program-specific
Small Business Category-Specific, i.e., SDB, Vets
Customers
Other Aerospace Counterparts
Technical and Program Management
From Various Ethnic Trade Associations
16 Current Protégés
Leveraged Across the Enterprise
Capabilities, Timing, Past Performance, Relationship Building Are Key Considerations

10. How Do We Grow Our Suppliers?
Identify potential suppliers and cultivate current suppliers that possess the following characteristics:
Outstanding performance
Competitive prices
On time delivery
Financial Stability
Focused on customer satisfaction
Employs continuous improvement practices
Products and services complement NGC’s long term business model
Products and services can be utilized at multiple business units
Effective supplier growth strategies
Mentor-Protégé Program
Provides Incentives For Prime Contractors To Team With Small, Disadvantaged Businesses
Develop Infrastructure and Business Development Skills Through Mentoring
Obtain The Skills Necessary To Compete More Effectively For Government Prime And Subcontracts
Small Business Innovation Research Program
Funds early-stage R&D at small technology companies and is designed to:
Stimulate technological Innovation
Increase Private Sector commercialization of Federal R&D
Increase Small and Minority Business participation in Federally funded R&D
Building Positive, Long Term Relationships
Are Key To Success

11. Selection Criteria Engineering Or Technical Capability
Supplier Capacity
Diversity of Manufacturing, Product or Services
Previous Experience - Like Companies or Other Northrop Grumman Sites
Past Performance – Quality, Delivery And Cost
Supplier Location – Proximity to One or More Northrop Grumman Sites
Small Business Relationship

12. Developing the Prime/ Subcontractor Relationship
What Works
Credibility
Quality Products / On-time Delivery / Cost Affordability
Proven Performance
Conferences / Trade Fairs
Perseverance
Knowing the System
What Doesn’t
Contacting High Level Execs
Demanding Business
Being Unprepared
Not Doing Your Homework
Building a positive relationship with potential customers
is key to a successful outcome

13. Tips For Success
Team with other small businesses in order to offer expanded capabilities
Provide added value by offering additional complementary products and services
Develop / nurture customer relationships
Allows the supplier to better understand its customer requirements
Develop strategic alliances
Join industry organizations in order to stay current on new technology and trends
Position Yourself in your target industry
Understand the Marketplace
Create your Niche - Identify what makes you unique in the Marketplace
Maintain a strong financial history
Length of time in business
Strong financial statements
 Maintain funding resources
Financial resources to sustain the company during aggressive growth as well as a market downturn

14. Where to Get Help Resource Website
Socio-Economic Business Program Offices
- Can Provide Information and Materials to Potential Suppliers
Small Business Administration (SBA)
Procurement Technical Assistance Centers (PTACs)
Minority Business Development Agency (MBDA)
National Contract Management Association
Industry Associations i.e., Aerospace Industries Association (AIA)
Business Associations i.e., National Minority Supplier Development Council (NMSDC)

15. Contact Information
For Background Information About Northrop Grumman Corporation:
Follow us on:
Small Business Program Contacts
Social Media
Website
Twitter
Facebook
Tumblr

16. Summary
Northrop Grumman’s Procurement Strategy Is Designed to Insure That Capable Small Businesses Receive The Maximum Practicable Subcontracting Opportunities On Our Programs

17. Scorecards/Ratings - Generated in support of Subcontracts.
Reporting Supplier Performance Formal Communication to Supplier with Senior Corporate Visibility
Supplier Performance
OASIS
Scorecards/Ratings - Generated in support of Subcontracts.
Red Recovery /Return to Green
Source Selection
Corp Data Call
Platinum & Preferred