Supporting Our Suppliers through COVID-19

As an essential business, Northrop Grumman is continuing to deliver for our customers throughout this crisis, and taking measures to support our supply chain ecosystem of thousands of suppliers across 50 states and 51 countries.

“Our supply chain partners are critical to our success, enabling us to satisfy the needs of our customers and ensuring warfighters get what they need,” said Pat McMahon, vice president and head of Northrop Grumman’s Global Supply Chain.

Northrop Grumman started by surveying suppliers to better understand their pain points and needs. Suppliers are working hard to deliver on their commitments, but as time goes on, some may become financially stressed.

After the U.S. Department of Defense changed guidance on progress payments, Northrop Grumman shifted quickly to expedite funding to the supply base to help suppliers with their cash flow through the pandemic.

“In addition to the progress payment accelerations that Northrop Grumman is flowing through to its supplier base, we are accelerating approximately $30 million per week of payments to particularly critical small and mid-sized suppliers,” said McMahon.

These accelerated payments and orders help suppliers keep their doors open and make payroll for their employees.

“We are committed to the financial health of our supply base, and small businesses are a critical part of our supply chain and represents approximately 38 percent of our domestic spend,” said McMahon. “We are also providing a steady flow of demand for their products.”

“Captor truly appreciates having a customer like Northrop who values the relationship between our companies and is willing to go beyond the norm to support small business,” said Scott Timms, president of Captor Corporation.

Northrop Grumman has also stood up information on a supplier website to help suppliers interpret government regulations surrounding critical infrastructure, in an effort to help them stay open.

Northrop Grumman will continue to pulse the supply base throughout the crisis to address issues where we can and find new opportunities to help.

“Our mission is critical to our national defense,” said McMahon. “Our suppliers are an extension of us, and we will support them to ensure they get through this and come out the other side successful.”

April 21, 2020