BAE Systems streamlines source-to-pay processes to bolster operational excellence

Leading aerospace and defense manufacturer BAE Systems is streamlining its source-to-pay (S2P) processes to enhance operational excellence (OPEX).

In partnership with Ivalua, a provider of AI-powered spend management software, BAE Systems aims to consolidate disparate supplier management as well as direct and indirect procurement systems into a single platform.

BAE Systems is one of the largest defense, aerospace and security companies in the world. It delivers a full range of products and services for air, land, space and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. 

BAE systems is future-proofing operations amid strict compliance requirements

The aerospace and defense industry is highly regulated and organizations operate under strict compliance guidelines. To meet its complex supply chain needs and simplify procurement operations, the company sought a platform capable of delivering seamless experience for its users and with the highest levels of data security, according to the announcement.

BAE Systems believes Ivalua meets these requirements. “We selected Ivalua due to its robust technical capabilities and proven success in the aerospace and defense sector,” said Brad Pelachyk, VP of supply chain at BAE Systems, Inc. “Ivalua enables us to future-proof our operations by consolidating multiple systems into a single, secure and agile platform.”

This will enhance user experience, foster stronger collaboration with suppliers and equip BAE Systems with the tools it needs to support growth, Pelachyk added.

“Ivalua GovCloud brings our analyst-recognized leading S2P platform to organizations operating in highly regulated environments enabling them to modernize and scale operations with the required levels of security,” commented Franck Lheureux, CEO of Ivalua. “We are thrilled to partner with BAE Systems, Inc. to power its new era of digital transformation.”

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Businesses are increasingly focused on process enhancements

Process improvement is a key focus and investment area for businesses seeking to enhance OPEX and transformation, according to the PEX Report 2025, which examines the results of a survey of almost 200 professionals. 

More than a third of respondents (34 percent) said they are prioritizing end-to-end process architecture to support initiatives, with process modeling/documentation (34 percent) and customer-centric process management (30 percent) on the agenda too.

This correlates with spending ambitions; 22 percent of companies are looking to invest in business process management (BPM), followed by process excellence consultancy options and process modeling/mapping tools, both cited by 20 percent of respondents.

As organizations invest in transformation and technologies such as AI, it’s key that they consider their process foundations and how they build on them, says Stephen Donne, director of transformation at The Nottingham. “Optimizing processes for colleagues and customers before embarking on a digital transformation will always ensure a smooth delivery and the very best outcomes for all.”

Watch Pradheep Kileti, director at National Grid, discuss balancing operations with innovation

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