Procurement optimisation defence industry
Kloepfel Consulting enhances the operational effectiveness and economic resilience of your procurement through specialised strategies for the defence industry. In light of the current geopolitical turning point, we secure your supply chains against volatility while simultaneously realising significant cost advantages. We transform your procurement from a purely administrative function into a strategic value driver, combining supply security and budget efficiency under the strictest compliance requirements.
Your strategic partner for procurement and supply chain management in the defence industry
Production capacity bottlenecks, a broken industrial base, and sharply rising costs are putting immense pressure on companies. Manufacturing is running at its limits, new plants require up to 24 months, suppliers cannot scale – and this in the face of increasing BAAINBw requirements. At the same time, costs are exploding, projects are becoming 30–50% more expensive %, and delivery times are being delayed by years, often without consequences for the suppliers.
Uncertainty in demand planning and a lack of investment security are exacerbating the situation. Annual budget debates, stop-go procurement, and the absence of long-term contracts are preventing companies from investing in much-needed capacity.
Furthermore, there is an acute shortage of skilled workers along the entire value chain: around 40 % of employees are over 50 years old, engineers are lacking, and experienced purchasing professionals with defence compliance expertise are scarcely available.
Companies that want to remain capable of delivery, predictable, and resilient today need more than isolated measures – they need a structural, holistic ramp-up of their supply chain.
Your production has ground to a halt, supply contracts are falling through, and you're lacking skilled workers?
KLOEPFEL by EPSA returns you to operational capability.
We will contact you within 24 hours!
Purchasing & Supply Chain: tailored strategies for the defence industry
complex industrial purchases
also in NATO partner countries
for our customers
19 years of experience in industrial purchasing
For over 17 years, we have been optimising complex industrial procurement, including demanding metal-processing suppliers. This deep industry understanding makes us a reliable partner for sustainable results.
Defence-related expertise
We already advise suppliers to the defence industry, high-tech companies, and mechanical engineering firms. We understand ITAR/EAR, BAAINBw processes, and the logic of long-term contracts.
Pan-European Network for Critical Parts
Through the EPSA GROUP, we have access to an international network of around 5,000 purchasing experts – including specialists in politically „friendly“ countries. This allows us to develop alternative procurement strategies, such as nearshoring critical components, to make your supply chains more resilient and independent.
Builders' culture instead of consultants' theory
We don't talk. We implement. Our interim managers act as „Temporary colleagues“ directly in your teams, take responsibility, negotiate independently and implement measures without delay. They thereby provide noticeable relief for your organisation and ensure rapid, measurable progress.
We'll turn your purchasing and supply chain into a strategic weapon
For companies that need to secure their operational performance despite a shortage of skilled workers, supply bottlenecks, and investment uncertainty.
We possess comprehensive expertise in optimising procurement and supply chains for companies in the defence industry, offering a wide spectrum of specialised solutions. We can also develop tailor-made strategies for your company that precisely match your challenges.
- Sustainable reduction of all direct material costs: We identify potential savings across the entire value chain and implement measures that have a lasting effect.
- Increase material and process efficiency We are checking committee and cut-off, standardising products and thereby reducing the variety of articles and suppliers.
- Optimise supplier terms: We analyse pricing structures, discounts and volume agreements and implement measures to reduce direct material costs.
- Focus In the analysis, we focus on components, semi-finished products, and drawn parts in order to specifically identify potential savings.
- Cost optimisation We achieve direct savings, develop product group strategies, consolidate purchasing volumes, and manage suppliers and risks.
- Digitalisation We are digitising your procurement processes, implementing modern eProcurement tools, reviewing internal approval processes, and utilising existing framework agreement conditions.
- Classic purchasing levers We conduct direct negotiations with suppliers, consolidate requirements, create market analyses, structured tenders, and implement global sourcing.
- Focus When analysing, we focus on facilities, tools, services and IT to identify specific savings potentials.
- Logistics optimisation Through a comprehensive logistical health check, we identify potential for strategic freight cost procurement, optimise your network and the utilisation of your transport capacities, and create meaningful carbon footprint reporting.
- Logistics controlWe design your logistics processes individually and examine how our solutions can be seamlessly integrated into your existing organisational structure. At the same time, we analyse your global transport flows to efficiently optimise freight expenditure.
- Customs and Foreign Trade We examine your customs and foreign trade processes, check the correct classification of your goods, analyse import procedures and the handling of shipments, and ensure the proper documentation of export and proof of movement.
- Intralogistics We carry out a comprehensive health check of your intralogistics, analyse existing warehouse concepts and optimise your processes. In doing so, we support you in selecting optimal packaging and system solutions, create transparency over workflows and key figures, and provide a clear dashboard for continuous monitoring.
- Focus In the analysis, we focus on transport, storage, and handling.
- 100 % Focus: Our executive search experts understand the specific challenges of your industry and specialise in filling positions in procurement, supply chain, and logistics.
- 50,000 suppliers We have 50,000 suppliers on our network. We offer you access to a first-class network of specialists.
- 10,000 experts in the database: With our exclusive database of over 10,000 qualified specialists and managers, we precisely identify the right talent for your company.
- > 50 % Response Rates: High success rate with direct approaches: Thanks to the strong KLOEPFEL brand, we usually achieve response rates of over 50%%.
- Procurement procedures: We use game theory to scientifically improve negotiation outcomes and develop a procurement design tailored to your situation to maximise savings. At the same time, we consider the total cost of ownership perspective and examine the competitive situation – both for tenders and for existing business with multi-sourcing and suitable competitive clauses.
- Bilateral negotiations We combine scientific insights from behavioural economics, classical negotiation theory, and game theory, develop bespoke strategies, and support in unlocking new levers. As shadow negotiators or lead negotiators, we thus secure the best possible outcomes for your company.
- Accelerated negotiations We also conduct successful negotiations under time pressure and manage a large number of negotiations to maximise short-term savings. In doing so, we provide live reporting on status and achieved savings for precise control.
- Focus In the area of Negotiations, we focus on contracts, BAAINBw, and suppliers.
- Strategic supplier selection We assess suppliers based on quality, cost, capacity, and innovation potential to create the best possible foundation for your procurement.
- Optimisation of procurement volumes and processes: Key figures make performance measurable, reveal potential for optimisation, and enable targeted management.
- Technical Sourcing A special offer is Technical Sourcing. Through tailor-made approaches to Technical Sourcing, cost transparency is ensured, supplier risks are managed, and quality and efficiency in purchasing are increased.
- Strategy & Network Design We are reviewing your supply chain strategy and analysing the entire network design. In doing so, we will optimise your supply chains, from site planning and transport routes to the selection of suitable suppliers.
- Operational Planning & Inventory ControlWe review your S&OP and capacity planning, analyse master data and optimise your inventory management.
- Operational Excellence Through targeted improvement measures, we increase efficiency, quality, and process stability across the entire value chain.
- Resilience & Stability: The Supply Chain We identify risks, strengthen critical interfaces and create robust structures for a permanently reliable supply. We achieve +30% delivery and supply reliability.
Your experts for procurement & supply chain in the defence sector
KLOEPFEL by EPSA – consulting is part of the international EPSA Group, one of the leading procurement and supply chain consultancies in Europe with over 3,500 experts.
We support over 16,000 customers worldwide, many with demanding security and compliance requirements. With more than 2,000 optimisation projects completed, including over 400 in mechanical engineering-related industries, our team brings the experience and expertise to support you effectively.
„For over 17 years, we've been optimising complex industrial procurement, including demanding metalworking suppliers. We understand the challenges of the defence industry intimately. Let's talk and uncover potential levers for your purchasing and supply chain.“
Our solutions for your challenges in the defence industry
Production capacity bottlenecks & broken industrial base
KLOEPFEL solution:
- S&OP/Lean Manufacturing Delivery security, capacity planning & bottleneck management for defence supply chains
- Direct cost optimisation: Accelerated procurement of manufacturing equipment, negotiations with machine manufacturers
- Executive Search: Recruitment of Manufacturing Directors, Production Managers with Security Clearance
- Sourcing Setting up alternative suppliers for critical components (Dual-sourcing strategies)
Uncertainty in demand planning & lack of investment security
KLOEPFEL solution:
- Sales and Operations Planning (S&OP) Flexible planning scenarios for fluctuating BAAINBw volumes
- Supply Chain Management Work with the supplier on their supply capability, initiate OpEx measures, develop a long-term stability plan
- NegotiationsFramework agreements with options, instead of fixed quantities – negotiated with BAAINBw & suppliers
Cost explosion & schedule delay
KLOEPFEL solution:
- Direct cost optimisation: Strategic sourcing of components, drawn parts, and semi-finished products
- Indirect cost optimisation Reduction of overhead in indirect material groups
(Spare parts, tools, IT) - Negotiations: Performance-based contracts with penalties for delays, bonuses for timely completion
- Sourcing Benchmarking via EPSA Alliance (5,000 experts in 40 countries) for better conditions
Shortage of skilled workers throughout the entire value creation network
KLOEPFEL solution:
- Executive Search: Direct search for purchasing managers, supply chain managers, compliance officers with security clearance
- Recruitment Interim Manager for Defence Projects (ITAR/EAR knowledge, BAAINbW experience)
- Talent Pool Access to 5,000 EPSA experts – also for short-term engagements
Transforming Procurement & Supply Chain Defence efficiently and sustainably.
„I am happy to be available for a no-obligation consultation."
FAQ: Important Questions about Procurement Optimisation in the Defence Industry
Why is specialised procurement optimisation necessary in the defence industry?
The defence industry is subject to extreme cycles, stringent regulatory requirements (such as ITAR or national security specifications), and a high dependence on specialised suppliers. General optimisation falls short here; in-depth knowledge of long-term project contracts, material specifications, and the particular risk profiles of this sector is required.
How does Kloepfel Consulting ensure security of supply in volatile times?
We focus on proactive risk management and diversifying our supplier base. Through global sourcing and identifying alternative suppliers for critical components, we minimise dependencies and secure material availability even with sharp increases in demand.
Can cost savings be reconciled with the industry's high quality standards?
Yes. Our focus is not on pure price pressure, but on optimising Total Cost of Ownership (TCO) and process costs. Through more efficient category management, technical value analyses and the optimisation of supplier contracts, we generate flexibility without jeopardising technical integrity or safety.
How do you handle sensitive security requirements?
Discretion and adherence to the strictest confidentiality requirements are a given for us. Our consultants are familiar with the specific compliance structures of the industry and seamlessly integrate security aspects into the optimisation process.
What role does digitalisation play in defence procurement?
Digitalisation is the key to transparency. We support you in implementing tools for spend management and digital risk monitoring. The aim is to make data available in real-time, enabling informed decisions and immediate responses to market changes.