Supplier News

2013 Virtual Supplier Conference

Lockheed Martin held its annual Virtual Supplier Conference on June 19th 2013, and brought together thousands of representatives from suppliers to Lockheed Martin via live webcast. The virtual conference format increases affordability, decreases travel and allows a wide range of businesses to participate. Eighty local supplier representatives attended the conference live with the Lockheed Martin leadership team in Fort Worth.

“With two thirds of our costs residing in the supply base, suppliers play a key role in the overall mission success”, said Dan Pleshko, vice president, Global Supply Chain Operations for Lockheed Martin. “We can only achieve PEAQ performance if the whole supply web below LM is aligned to the same vision of bringing value to our customers through program execution, affordability and quality products and services.  We want to assure we are collaborating and innovating ideas and solutions that our customers expect.”

A replay of the conference has been made available by accessing the following link: 2013 Virtual Supplier Conference. The replay is divided into chapters; please select the ‘slide view’ (grid) button in the top middle of the screen to move to that section of the Conference. The charts that were presented by our leadership team are available here.

We hope that you enjoy the replay of our 2013 Virtual Supplier Conference and we hope that you can join us in 2014.

Supplier Diversity Contributes to Corporate Sustainability

The Lockheed Martin 2012 Corporate Sustainability Report includes recognition of the many contributions of our diverse supply chain providers to the sustainability of the corporation.  Small and diverse suppliers are an integral part of our supply chain, adding to corporate innovation and flexibility.

Supplier Recognition

Lockheed Martin Missiles and Fire Control in Dallas and Orlando, and Lockheed Martin’s Training and Logistics Solutions business in Orlando recognized thirteen small businesses from across the United States as outstanding suppliers.  While thousands of suppliers provide goods and services, these suppliers were top performers. 

Supplier Wire

The Lockheed Martin web page for Supplier Diversity has changed to Supplier Wire!  We have enhanced the information offered to suppliers with more content including videos, Webinars, and soon will have a live chat offering.  Read the news article on Supplier Wire, then check out the Supplier Wire page.

Electronic Invoice System

Lockheed Martin Corporation is moving to an electronic invoice system to facilitate more accurate invoices and more timely payment to suppliers.  This will replace all paper invoices, and no paper invoices will be accepted.  Training is available to learn how to use the new tool.  Suppliers can check the status of their invoices and payments. 

Frequently Asked Questions on the electronic invoicing system are available.  Click here


The changing dynamics of the economic environment and defense industry have made it critically important for Lockheed Martin to continue to look for ways to more effectively integrate and optimize the supply chain. To this end, we are in the process of implementing several best practices and approaches to ensure that we deliver the highest value of innovation, quality and program performance to our customers.

Supplier Collaboration and Development

Lockheed Martin's Supplier Collaboration and Development (SC&D) methodologies have been designed to assess, reconfigure, implement, and sustain a global supply chain network of suppliers for Lockheed Martin programs. The SC&D teams work directly with suppliers to analyze and transform manufacturing operations in order to reduce lead times and risk, improve affordability and ensure a seamless manufacturing flow in order to deliver maximum value and affordability in today's "new reality".

During an SC&D project, specific processes are analyzed to ensure the right materials are provided at the right location, on-time, and at the best possible price, with a strategic focus on reducing or eliminating non-value added processing.  This is completed by conducting process mapping events to identify risk reduction opportunities, developing business cases which project financial savings, conducting data analysis to ensure the greatest return on investment, as well as assisting with the actual implementation of solutions that have been identified by the team.

It is important to note that for SC&D projects, Lockheed Martin strives to align the Takt time between the delivery of subassemblies with business unit manufacturing needs. This creates a pull-based supply chain model, where materials get consumed and refreshed at the actual point of consumption. This in turn optimizes inventory management and streamlines material flow, thus creating collaborative 'win-win' savings opportunities for both Lockheed Martin and the supplier.

Category Management

Category Management is a supply chain management approach in which a range of products (i.e. information technology, connectors, etc) are strategically grouped by related products, each referred to as its own category. The goal of category management is to synchronize expenditures and supplier performance measurement on items with similar properties at a level where sourcing strategies are defined and planned. In order to implement this approach, Lockheed Martin is in the process of forming centralized and coordinated multi-functional teams in order to develop sourcing strategies, rationalize the supply base, enhance part standardization, improve purchasing efficiencies, streamline costs and provide consistent service.

These teams are comprised of representatives from each business area, and together they create the overarching strategy for the team moving forward. This may include the development of Category Management Plans (CMPs), Concept of Operations, organizational design, negotiations or contractual strategy, budgeting approach, or the communication of these changes to key stakeholders and team members.

Similar techniques to those identified above have been done and are currently being done throughout Lockheed Martin.  The difference with Category Management is that instead of duplicating efforts for each category at a localized and site level, the intent moving forward is to collaborate at the enterprise level. Simply stated, Category Management is not introducing a new behavior, it is introducing enterprise-wide collaboration. This realignment will further enable Lockheed Martin Global Supply Chain Operations to tackle challenges quickly and efficiently, while providing exceptional contracting and procurement services to the enterprise. The benefits of this approach include the ability to provide enhanced supplier management and strategic supplier relationships, establish fewer agreements in order to leverage spend, build on and leverage business area and enterprise strengths, support standardization, ensure supplier diversity consideration in major enterprise spend, and to establish standardization in policy, process and supplier measurement.  (September 2011)


Corporation of the Year for Supplier Diversity-Lockheed Martin Aeronautics

Lockheed Martin Aeronautics has been awarded the Corporation of the Year Award by the U.S. Department of Commerce’s Minority Business Development Agency (MBDA), Atlanta National Enterprise Center and the Minority Enterprise Development (MED) Week Public-Private Sector Council, with recognition given at an awards banquet on August 11, 2011, in Atlanta, GA. 

Regionally, our partnerships with small and minority owned businesses in Georgia enables us to develop a supply base to meet industry demands well into the 21st century. Lockheed Martin conducts an extensive Small Business Outreach Program that includes partnerships with Georgia based small business agencies. We offer a host of programs, tools and best practices to help small businesses grow and thrive.  (August 2011)

Lockheed Martin recognized by the National Veteran Small Business Coalition 

Lockheed Martin was recognized by the National Veteran Small Business Coalition (NVSBC) for “exceptional support” of Veteran and Service-Disabled Veteran Small Businesses during their training symposium awards luncheon held in Reno, Nevada, June 28th.

Lockheed Martin Information Systems & Global Solutions, IS&GS, was recognized for exceeding the federally mandated 3% SDVOSB subcontracting goal and presented the “Champion of Veteran Enterprise Award” for exceptional support of Veteran and Service-Disabled Veteran Small Business in FY 2010.  Mr. John Zuccaro, IS&GS Senior Purchasing Manager, accepted the award on behalf of Lockheed Martin IS&GS.

Lockheed Martin Missiles & Fire Control, M&FC, was presented an award for “significant improvements” in Veteran and Service-Disabled Veteran Small Business subcontracting.  Mr. Robert (Bob) Costello, M&FC Procurement Vice President, accepted the award of behalf of Lockheed Martin M&FC.  (June 2011)

Lockheed Martin and ISYS Technologies Win U.S. Defense Department's Nunn-Perry Award

Lockheed Martin earned national recognition on March 2 for mentoring a small woman-owned business supplier performing for the Department of Defense (DOD) and other U.S. Government agencies.

The Mentor-Protégé agreement between Lockheed Martin Information Systems & Global Solutions and ISYS Technologies of Littleton, CO, received a DOD Nunn-Perry Award, which honors outstanding and successful Mentor-Protégé relationships.  It was the Corporation’s  tenth award since its inception by the DoD Office of Small Business Programs (OSBP) in 1995.

“A chief objective of the Corporation is to maintain a world-class supply base, one that enables program excellence and enhances shareholder value,” says Nancy Deskins, Director of Category Management & Supplier Diversity for Lockheed Martin.  “Using diverse suppliers makes good business sense and contributes to mission success.”

Under the agreement, Lockheed Martin has assisted ISYS Technologies in developing its Business Infrastructure and Engineering and Information Technology capabilities to perform as a premier small woman-owned business supplier to the DOD, Missile Defense Agency and NASA.  ISYS Technologies is a Small Business Administration award-winning Small Woman Owned Business (WOSB) headquartered in Colorado with a satellite office in the National Capital Region. Lockheed Martin provides knowledge, experience and best practices to help ISYS Technologies develop as a premier small business and serve defense, aerospace and commercial markets.

Working through the U.S. Missile Defense Agency Mentor-Protégé office and DCMA over a three-year period, the two companies combined efforts to perform work on and bid more than 20 government programs.  ISYS leverages its engineering and technology capabilities in many areas critical such as systems engineering, software engineering, cyber security, military analysis, network operations and mechancial engineering.  

As part of the Mentor-Protégé initiative, Lockheed Martin teamed with the Alabama A&M, a Historically Black College/University (HBCU) in Huntsville, AL, to provide marketing assistance to ISYS Technologies.

"The mentoring assistance provided by Lockheed Martin and Alabama A&M has proven to be invaluable to ISYS.  It has allowed us to progress our infrastructure and business practices and mature our past performance, both critical areas which will allow us to support the mission; to serve and protect those who serve and protect us," said Teresa Porter, CEO of ISYS Technologies. 

The prestigious Nunn-Perry Award is named in honor of former U.S. Senator Sam Nunn, for his vision and insight in sponsoring legislation to create and fund the DoD Mentor-Protégé Program; and former U.S. Secretary of Defense William Perry, for his commitment to its implementation.  (March 2011)

Photo Caption:  Pictured above (from left):  Greg Budnick, Lockheed Martin IS&GS Project Engineering Manager; Kurt Hotto, ISYS Technologies Sr. Vice President, Teresa Porter, ISYS Technologies CEO; Colleen de Vries, Lockheed Martin IS&GS Global Supply Chain Senior Manager, Carin Elbert, Lockheed Martin IS&GS Program Management Senior Manager; Cheryl Dial, Lockheed Martin IS&GS Mentor/Protégé Coordinator.

Lockheed Martin Among 10 Best Corporations for Veteran-Owned Businesses 

Lockheed Martin was named by the National Veteran-Owned Business Association (NaVOBA) as one of the 10 Best Corporations for Veteran-Owned Businesses for 2010 today.

Vetrepreneur Magazine states, "earning the honor as one of the 10 Best Corporations for Veteran-Owned Businesses shows a company's dedication to veterans and demonstrates an understanding that doing business with veterans isn't just the right thing to do; it's simply a smart business decision."  NaVOBA specifically applauds Lockheed Martin for its commitment to veteran-owned businesses at the highest levels of the company's leadership. 

"We take great pride in having veteran-owned vendors as preferred suppliers, and it's a special privilege to extend business opportunities to those who have served our nation.  Our diverse supplier base enables us to provide agile and affordable global security solutions for our customers worldwide," said Robert Stevens, President & CEO.  Other areas that propelled Lockheed Martin to this top 10 status include the company's use of key initiatives such as mentor-protege agreements, enhanced training programs and focused, strategic efforts, as well as increased emphasis on technology use to reach out to small, diverse suppliers.  (April 2011)

Lockheed Martin's Outstanding Small Business Support Honored by U.S. Department of the Treasury

Lockheed Martin recently was honored by the U.S. Department of the Treasury for its work with small and disadvantage businesses. The Treasury presented Lockheed Martin with its esteemed 2010 Large Business Prime Contractor of the Year Award for exceptional liaison and mentoring protégé support with subcontractors working on the U.S. Mint's Information Technology Services (ITS) contract, a consolidated information technology and services program.

Once a year, the Office of Small and Disadvantaged Business Utilization in partnership with one of U.S. Treasury's bureaus honors a prime contractor for exceptional service with its subcontractors. This year the award was presented to Lockheed Martin for its outstanding contributions and service to the U. S. Mint on the ITS program, which includes 30 subcontractors from the 13 firms.

The award recognizes a prime contractor's positive mentoring, respect and partnership with its subcontractors. Lockheed Martin was nominated for the award by the Procurement and Support Services Division.  (January 2011)

Lockheed Martin named "Top Organization for Multicutural Business Opportunities"

Lockheed Martin has been selected as one of "America ’s Top Organizations for Multicultural Business Opportunities for 2011". Your commitment and continued support of multicultural companies have made a profound impact within the business community.

The Div50 represents a list of the Top 50 Corporations who are noted for their commitment to multicultural business opportunities. The award is based on factors such as volume, consistency and quality of business initiatives a company grants to multicultural suppliers. The list has become a leading and highly respected indicator of organizations that have truly differentiated themselves in the global market place; particularly in an era where diversity has been imperative for economic prosperity and future success.  (April 2011)

Lockheed Martin Subcontractor Awarded NASA's Agency Award for Small Business Subcontrator of the Year

For the second year in a row, a Lockheed Martin small business subcontractor has won NASA’s Agency Award for Small Business Subcontractor of the Year. Space System Company’s Orion program nominated veteran-owned small business Fiber Materials, Inc. (FMI), which ultimately was named the 2010 winner of the Johnson Space Center Small Business of the Year Award.

FMI earned the nomination for their support of the Orion Pad Abort 1 test that was performed earlier this year. Since its inception, the Orion program has focused on bringing on small businesses with niche skills onboard as subcontractors to perform work in critical roles.

Orion needed a high temperature structural material for the new Attitude Control Motor (ACM).  For the Launch Abort System (LAS), the ability to continuously control the ACM solid rocket motor thrust vector and magnitude is the key new function enabling never before achieved crew safety.   In developing this specific application for the LAS, FMI was able to adjust design, process and material cut plans based on development tests to meet all thermal and structural requirements. 

FMI delivered exceptional technical and subcontract performance enabling effective management of this risk and was successful in achieving the critical milestones necessary to allow the Orion Flight Test Program to stay on schedule.   FMI’s performance directly contributed to the ultimate success of the Pad Abort 1 (PA-1) flight test at White Sands Missile Range in May 2010. As NASA’s SR&QA Associate Administrator Brian O’Conner and NASA LAS Chief Engineer, Jeff Sheehy, put it following the test, “We would have saved a crew today.”  (November 2010)