KnowledgePath Blog

Aerospace and Defense ERP Systems | Best ERP Strategies

Written by David Warford Sr. | Sep 23, 2025 8:43:02 PM

Missed deadlines, audit findings, vendor failures—if you're in aerospace or defense manufacturing, you’ve seen how quickly small errors turn into massive liabilities.

Gartner reports that by 2027, over 70% of ERP initiatives will fail to meet their original business goals. That number should alarm anyone managing long-lifecycle programs, regulatory compliance, and global supply chains.

If your ERP can’t support AS9100 workflows or track revisions over decades, it’s a strategic risk. This guide provides aerospace decision-makers with clear, proven strategies for selecting, implementing, and optimizing ERP systems designed for operational control, measurable ROI, and long-term compliance.

 

Why ERP Success Matters in Aerospace Manufacturing

In aerospace and defense, the ERP system is the control tower. It manages precision parts, governs supply chain visibility, and ensures audit readiness. Without the right ERP foundation, even top-tier manufacturers risk costly missteps.

In this sector, ERP anchors configuration management, supplier quality, manufacturing execution, and compliance reporting. When done right, it delivers traceability, real-time data, and control across every program and process.

However, ERP misalignment is a common and costly issue. Too many aerospace ERP systems fail because the implementation strategy doesn’t reflect the complexity of the industry.

High Stakes of Aerospace Compliance and Traceability

AS9100, ITAR, and FAA regulations demand full traceability across every part and process. ERP software must capture and link the lifecycle from raw material certificates to installation. Without it, you're risking failed audits, lost contracts, or grounded assets.

Complex Supply Chains Demand Unified Systems

Aerospace programs rely on global, multi-tiered supply chains with thousands of parts and strict tolerances. Disconnected tools and siloed teams breed risk and delay. A unified ERP platform for aerospace and defense integrates engineering, procurement, quality, and manufacturing. It gives teams a shared, real-time view of supplier status, production schedules, and compliance gaps. That visibility isn’t a luxury. It’s survival.

The Cost of Failed Implementations in Aerospace Manufacturing

ERP failures in aerospace cost 2–3x more than in other industries due to compliance overhead, long program cycles, and strict contract terms.

Whether it’s selecting the wrong ERP system, customizing a generic solution beyond recognition, or skipping process alignment, the results are the same: delays, rework, missed SLAs, and blown budgets. Successful ERP implementation is about building an ERP solution that scales with your programs, meets audit requirements, and supports the full product lifecycle.

 

Common ERP Challenges in Aerospace Manufacturing

Before you can implement the right ERP system, you need to understand the wrong ones. Aerospace and defense manufacturers face unique ERP challenges that generic systems or rushed deployments can’t handle. These challenges stall ERP implementation projects, inflate costs, and increase compliance risk.

Here are the top failure points you need to plan around:

1. Legacy systems block real-time visibility.
Most aerospace companies still rely on outdated MRP platforms or heavily customized tools that lack modern ERP capabilities. These legacy systems trap critical data in silos such as spreadsheets, isolated quality modules, or unsupported software.

Modern ERP systems designed for aerospace and defense must support API connectivity, cloud deployment, and real-time data sharing. Without that, operational efficiency suffers, and regulatory compliance becomes a guessing game.

2. Complex product lifecycles overwhelm generic ERP.
Aircraft and defense programs span decades. Your ERP software must manage intricate BOMs, engineering change orders (ECOs), serial and lot traceability, and MRO support—all without degrading system performance over time.

Most ERP solutions, not purpose-built for aerospace, fail under the weight of this complexity. To support full lifecycle traceability, the right ERP must include native configuration management tools aligned to the requirements of the aerospace industry.

3. Compliance features are often bolted on—not built in.
AS9100, ITAR, and aerospace export controls demand built-in compliance workflows, not patchwork solutions. Yet many ERP vendors lack features for aerospace and defense, such as version-controlled quality records, user-based access, and audit-ready logs.

Choosing an ERP system for aerospace means prioritizing these core features—not viewing them as optional add-ons. Many aerospace and defense companies turn to RubinBrown's ERP Advisory Services to ensure compliance is built into ERP selection from the start. This is non-negotiable if you want to ensure compliance without relying on spreadsheets or costly manual processes.

4. Cross-department resistance can kill adoption.
Even the best ERP system will fail if engineering, operations, and quality teams don’t use it. Resistance to change, especially from staff tied to legacy workflows, is a common blocker in aerospace ERP implementation.

Successful ERP rollouts require more than training. Aerospace manufacturers must involve cross-functional teams from day one. That means hands-on pilots, feedback loops, and dashboards tailored to the specific needs of aerospace roles, from quality managers to program leads.

 

Core Strategies for ERP Success in Aerospace

Aerospace and defense manufacturers can’t afford ERP misfires. Whether modernizing outdated systems or expanding across programs, ERP implementation must reflect the strict compliance, lifecycle complexity, and supply chain demands of this industry.

Below are five proven strategies to guide a successful ERP journey.

Conduct a Cross-Functional Needs Assessment

ERP implementation starts with understanding aerospace. Engage stakeholders across engineering, quality, procurement, and compliance to surface pain points, risks, and integration gaps.

This step helps define ERP needs clearly: AS9100 alignment, traceability, supplier scorecarding, and ECO management. A well-run assessment ensures ERP selection aligns with real-world manufacturing processes.

Prioritize Aerospace-Specific Modules and Workflows

Generic ERP software rarely fits the complexity of aerospace operations. Look for ERP solutions specifically designed for aerospace and defense companies. These include modules for program cost tracking, contract deliverables, export control compliance, and FAA certification workflows.

Aerospace-ready platforms minimize custom work and accelerate time-to-value. They’re engineered to meet the unique requirements of the aerospace industry without relying on workarounds.

Align ERP with QMS and Regulatory Requirements

Enterprise Resource Planning must work hand-in-hand with your Quality Management System. AS9100, ITAR, and FAA standards require documented, enforceable quality processes. Your aerospace ERP system should support non-conformance reports (NCRs), corrective actions (CARs), and audit logs linked to production and supplier records. This integration reduces audit exposure and supports aerospace regulatory compliance from day one.

Build a Phased Rollout Plan with Performance Checkpoints

Avoid big-bang ERP launches in complex aerospace environments. Roll out ERP in stages: start with traceability, BOM control, and supplier data, then expand. Each phase should include hard KPIs: for example, 100% part traceability or 95% supplier on-time delivery. These checkpoints help align teams, reduce disruption, and keep the ERP implementation project on track.

Focus on System Integration—Not Siloed Software

ERP must integrate seamlessly with PLM, MES, MRP, and cloud systems. Siloed ERP only adds problems in a data-intensive, compliance-driven industry.

Use middleware or open APIs to connect your ERP with upstream design tools and downstream execution systems. Full system integration is what empowers aerospace companies to achieve operational efficiency, analytics, and supply chain management at scale.

 

Selecting the Right ERP for Aerospace Operations

Getting ERP implementation right starts long before rollout. The biggest success factor is whether aerospace and defense companies choose an ERP system that fits the industry’s requirements from the start. Selecting the wrong platform leads to costly customization, failed projects, and compliance gaps that no amount of training can fix. This section is your due diligence checklist for ERP selection.

Must-Have Features for Aerospace ERP

Aerospace ERP must go beyond generic enterprise resource planning. Look for features specifically designed for the aerospace and defense industries:

  • Lot and serial traceability: Required for AS9100 and aerospace regulatory compliance.
  • Engineering change management: Supports complex manufacturing with frequent ECOs and long lifecycles.
  • Program-based costing: Tracks true costs across multi-year aerospace projects and contracts.
  • Export compliance and ITAR controls: Essential for defense contractors handling restricted data.
  • Integrated QMS workflows: Links supplier quality, CARs, and NCRs to enterprise planning.

Without these, aerospace manufacturers face expensive workarounds or risky manual processes.

Tier 1 vs. Aerospace-Specific ERP Vendors

Choosing between Tier 1 ERP platforms and industry-specific solutions isn’t just about features. It’s mainly about fit. Tier 1 systems like SAP or Oracle ERP Cloud bring scale and advanced analytics, but often require heavy customization to meet aerospace requirements. Aerospace-focused solutions such as IFS or Infor A&D offer prebuilt compliance and manufacturing tools, but may not scale for every organization.

This is where independent ERP advisors like RubinBrown provide value. Instead of pushing one vendor, RubinBrown helps aerospace and defense companies evaluate options objectively, validate capabilities against business goals, and ensure the ERP solution chosen is the right fit for long-term growth. The role of ERP is too critical to leave to guesswork. Vendor-neutral guidance reduces risk and increases confidence.

Key Questions for Vendor Evaluation

When issuing RFPs, aerospace companies should probe vendors on real-world fit:

  1. Can the system support AS9100 documentation workflows without customization?

  2. How are ECOs and revision histories managed across complex aerospace operations?

  3. What is the average time-to-deploy for aerospace and defense manufacturers of our size?

  4. Is ITAR supported natively or dependent on third-party solutions?

  5. How does the ERP system handle lifecycle requirements in discrete manufacturing programs?

These questions cut through vendor marketing and focus on what matters most: compliance, traceability, and lifecycle support. Aerospace ERP systems are designed to manage complexity, but only if you choose the right one.

 

Best Practices for ERP Implementation Success

Execution is where most ERP implementation projects succeed or fail. Even with the right ERP system in place, aerospace and defense manufacturers often stumble without disciplined rollout practices. These best practices are proven to reduce risk and maximize long-term value.

Assign Internal Champions and Executive Sponsors

ERP implementation is an enterprise resource planning transformation. Aerospace companies must appoint functional champions from operations, engineering, and compliance. Pair them with an executive sponsor who has the authority to remove roadblocks. This leadership structure ensures ERP strategies are supported at every level of the aerospace organization.

Use a Qualified Aerospace Implementation Partner

Not all ERP partners understand the specific needs of the aerospace industry. Choose a partner with proven aerospace ERP expertise, references from defense contractors, and familiarity with regulatory compliance standards such as AS9100 and ITAR. A qualified partner reduces the risk of misaligned configurations and accelerates the delivery of a new ERP system tailored to aerospace and defense manufacturing.

Make Training and Adoption a Core Deliverable

ERP software only delivers ROI if people use it effectively. Treat training as a central part of the ERP implementation project. Build role-based training paths supported by live sandbox environments where teams can practice without fear of disrupting production. Track adoption metrics such as logins, data entry accuracy, and support requests to measure user engagement. For aerospace organizations with complex manufacturing processes, adoption is the single biggest driver of ERP success.

Monitor KPIs Throughout the Implementation

Aerospace ERP systems provide powerful analytics and dashboards that should be used to track both leading and lagging indicators. Monitor cycle time reduction, data accuracy, and system uptime during rollout phases. Over time, track outcomes such as on-time delivery, supplier quality, and audit readiness. This continuous feedback loop ensures ERP delivers measurable improvements in operational efficiency across the aerospace and defense industries.

Create a Post-Go-Live Optimization Plan

Going live is just the start of a long-term ERP journey. Aerospace and defense ERP systems must be continuously optimized to meet evolving requirements of aerospace programs, suppliers, and compliance mandates. Conduct quarterly reviews of system performance, user feedback, and audit results. Prioritize enhancements that improve data quality, close compliance gaps, or support lean manufacturing practices. Post-go-live optimization ensures ERP continues to empower aerospace business growth.

 

Final Thoughts: Long-Term ERP Strategy for Aerospace Leaders

ERP is not a one-time project. It’s a long-term asset that delivers compliance and efficiency across aerospace and defense programs.

The future of ERP in aerospace will be driven by cloud adoption, real-time analytics, and continuous optimization. Leaders who treat ERP as a living system will be better prepared for regulatory shifts, complex manufacturing, and supply chain challenges.

Ready to modernize your aerospace operations? Explore RubinBrown's ERP Advisory Services and start building an ERP roadmap designed for lasting success.