Lockheed Martin COO Says Sees Reluctance Of Supply Chain To Engage In Long-Term Agreements

Lockheed Martin Chief Operations Officer Frank St. John said on Tuesday that the company is seeing a reluctance on the part of the supply chain to engage in long-term agreements as has been the case in the past

WASHINGTON (UrduPoint News / Sputnik - 20th September, 2022) Lockheed Martin Chief Operations Officer Frank St. John said on Tuesday that the company is seeing a reluctance on the part of the supply chain to engage in long-term agreements as has been the case in the past.

"We're seeing a reluctance on the part of our supply chain to engage in long-term agreements. Historically, one of the ways that we've driven stability and encouraged investment within the supply chain, and delivered value for the customer, is by striking long-term agreements, where we felt like we had visibility into demand," St.

John said during a Center for Strategic and International Studies (CSIS) panel discussion.

In the past, Lockheed Martin was able to sign three- or four-year agreements with the supply chain, and then those savings would get passed on to the customer as subsequent buys played their way out, St. John said.

What Lockheed Martin and other companies in the United States are getting back from the supply chain is that there is so much uncertainty regarding costs and the availability of material that they are unwilling to become a part of long-term agreements.