Robust supply chain governance is essential to winning large-scale, highly profitable government projects—particularly in the military and defence industries.

In the US, President Biden recently issued the Executive Order on Improving the Nation’s Cyber Security. The Order acknowledges the increasing volume of cyber and software security risks within the US Federal Government’s supply chain. Federal Government departments and agencies are increasingly at risk as a result of the software and services they acquire from, and use as a result of interacting with, members of their supply chain.

According to Biden’s Executive Order, the entire government supply chain needs to be compliant with the Cybersecurity Supply Chain Risk Management Practices for Systems and Organizations, as published by the National Institute of Standards and Technology (NIST).

This means that companies of all shapes and sizes—from defence industry contractors, through to human resources consultants—will need to invest in cyber security compliance.

But, the knock-on effect doesn’t stop there.

That same defence industry contractor will need to ensure that their supply chain is compliant—from the companies that supply them with raw materials, through to manufacturers of their componentry. And so, and so forth, like one big game of dominos.

Many industries in Australia are following suit. Australian Government departments are increasingly calling for demonstration of cyber security compliance as part of their tender process for major contracts.

In fact, any company that enters into a contract with an Australian Government agency is subject to the Privacy Act, Notifiable Data Breach Scheme and the Australian Privacy Principles. This requirement extends beyond government contractors, to encompass their subcontractors.

Similarly, the Australian Defence Force (ADF) mandates Defence Industry Security Program membership in some circumstances. Under DISP membership, there are four cybersecurity standards that contractors can choose to adhere to, including ISO 27001. Regardless of which standard selected, any systems or networks involved in storing, processing or communicating ADF information must comply. While DISP membership may not be mandated in all circumstances it is highly recommended when working on any Defence project.

Cyber security and information security management compliance are quickly becoming a licence to operate. Robust supply chain governance is essential if you want to participate in national tenders and win the opportunity to work on large-scale, highly profitable government projects—particularly in the military and defence industries.

How to Ensure Robust Governance Throughout Your Supply Chain

If you are a government contractor, managing the governance of your supply chain can seem almost impossible. There are so many moving parts, countless boxes to tick, and exceptionally high standards with which you’re expected to adhere.

Luckily, a platform like de.iterate can help.

Essentially, de.iterate can manage the end-to-end supply chain governance process for you.

It works like this. de.iterate onboards the head contractor. Let’s call them Defence Contractor X—DCX for short. de.iterate configures the platform according to the needs of DCX, ensuring that all government compliance requirements are adhered to. de.iterate provides DCX with training and documentation on how to use the platform.

DCX then makes use of the de.iterate platform a condition of doing business with them. The members of their supply chain are equipped with simple, auditable policies, user training and risk management processes via the platform.

Once their suppliers are using the platform, DCX can run standardised reports featuring consistent metrics and monitor automated compliance calendars to keep their suppliers on track. DCX can run reports on individual suppliers to monitor their performance, and then help steer them in the right direction if remediation action is needed. DCX can even create an aggregate report for their entire supply chain to determine the highest and lowest performers, and to satisfy government reporting requirements.

The de.iterate platform gives government contractors stress-free visibility and assurance of robust governance across their entire supply chain.

Need Help?

Questions? Queries? Keen for further information? Contact de.iterate today.