Aviation, Aerospace, Defense & Security

S7Clear Aerospace and Defense Consulting and Procrument have been involved with players in the Aeronautics and Defense sector with strong and recognized contributions by addressing major challenges such as reducing the sector’s ecological impact, improving industrial agility, and reducing costs to gain competitiveness.

17 years in business
1k+ products launched
53% remote employees

Global Defense Procurement.

S7Clear cooperate with governments and defense companies leverage performance based logistics

S7Clear approach to the design of procurement and maintenance contracts that is already being used by the public sector and private industry, mainly outside of the United States. Most governments and many of the region’s defense companies have struggled to implement Performance-based logistics (PBL), even though it has been proven to help to address the four core challenges that all armed forces in the West confront: military personnel shortages, increasingly complex weapon systems, and innovation and cost pressures. None of these challenges appears to be solvable using conventional procurement and maintenance approaches.

S7Clear PBL involves long-term collaboration that includes planning for all associated requirements, a clearly specified set of services to be provided and transfer to the contractor of responsibility for the operational readiness of complex systems. These goals are achieved by establishing and monitoring key performance indicators (KPI) and by transparent communication between both parties.

For the armed forces, PBL contracts reduce staff workload and release personnel for core military tasks. PBL contracts also ensure predictable long-term budget outflows. For the defense industry, PBL increases contractual flexibility, improves efficiency, and generates long-term, consistent cash inflows, supporting investments in infrastructure, personnel, and IT.

However, there is no one-size-fits-all PBL solution. Contracts must be specifically adapted to the client’s operational objectives, the contractor’s market position, and the weapon system being procured. Drawing on our extensive project experience, S7Clear has developed a framework for supporting the set-up of PBL contracts which enables both clients and contractors to achieve maximum mutual benefits.

Sector Dynamics

Macroeconomic conditions are tough in aviation. Over the past two decades, a number of well-known brands have disappeared from the skies and on the ground. Some due to mergers and some simply by being unable to keep pace with fierce competition, regulation, volatility, and rising costs. Although passenger numbers are on the rise, airline ticket prices continue to fall, as do carrier margins. The race is on to differentiate, finding new ways to attract customers and inspire loyalty in airports, online and on-board. Procurement is emerging as a key enabler. By looking beyond traditional, core procurement categories, organizations are able to find new ways to innovate and deliver margin improvement.

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