Category: Defense Manufacturing, Government Contract Manufacturing, Job Costing Accounting
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The Easy Way Defense Contractors Win in Manufacturing
The vast majority of defense contractors around the world call government entities their customers. This means precision is critical to every area of their manufacturing. Any manufacturer that is a supplier to a government (and for this article we will focus on the government of the United States of America) has to be compliant with DCAA (Defense Contract Audit Agency) regulations. These regulations require a different way to handle costing which impacts the way all employees, from the President to the custodial crew, report their time in order to fulfill the compliance requirements.
In addition to the costing compliance, the traceability of raw materials and components has to be traced back to their source. With a robust and fully-integrated ERP system like Global Shop Solutions this traceability is efficient, simple, and automated. Without a robust, and most importantly, fully-integrated ERP system this traceability is inefficient, manual, and complex. Instead of automatic calculations the defense contractor will be responsible for hiring and paying extra accounting and costing resources or delay the reporting to a point where the data is only meant to be compliant with a deadline instead of being utilized to make business decisions. This lack of costing and traceability compliance for defense contractors often means stiff penalties and eventual loss of business with that government entity.
Learn more about how Global Shop Solutions supports defense contractors and read about some of our most successful customers in the space at the following webpages:
Daniel Carranco is a Consulting Lead at Global Shop Solutions whose main focus is simplifying manufacturing for our customers.