The Key Role Automation Plays in Risk Management for Aerospace, Defense, and Government Contractors

Everyone who works in aerospace, defense, and government contracting knows that it’s a heavily regulated industry and that compliance is both a legal directive and a strategic imperative. Failure to meet compliance mandates can lead to all sorts of negative consequences including financial penalties, reputational damage, and more. Despite this, many aerospace, defense, and government contracting organizations are not doing all they can to avoid these preventable outcomes.

How Automated T&E and AP Solutions Improve Compliance and Reduce Risk

According to Wakefield Research, 37% of government contractors say their current T&E solution doesn’t provide real-time visibility for preventing budgetary overruns and errors, and even more (40%) say the same for their AP solution. If your organization falls into this category, you may not be getting a full picture of your finances. Without this insight, you’re essentially flying blind, unable to monitor compliance, control unclassified information, and mitigate risk. As a government contractor, you might sit on both a national and global stage. One seemingly simple mistake can cause your company to make headlines.

Automation doesn’t just give you the full picture of your finances. It also gives you the granular oversight you need to track cash flow, ensure accurate expense reporting, and detect errors. This visibility is important for keeping controlled unclassified information safe, which ultimately keeps your company name and reputation out of the news. Plus, with a cloud-based solution, you can access information from anywhere, giving you added flexibility and control.

Automation and Data Visibility: Solving Invoice Challenges in Aerospace, Defense, and Government Contracting

Because 71% of aerospace, defense, and government contracting organizations use an AP solution that requires manual data entry and/or scanning of paper invoices, processing and remitting payment takes an average of 54 days – that’s 37 days slower than the overall manual processing average according to SAP Concur data.

Automation reduces the number of manual tasks and errors – two things the fast-paced aerospace, defense, and government contracting industry doesn’t have room for. Payments are made on time, strengthening vendor relationships, and automatic compliance checks keep the organization safe from penalties. All the while, employees have more time to focus on strategic work, rather than paperwork.

Automated T&E Solutions That Strengthen Compliance and Financial Reporting

Almost all (99%) of leaders in a recent survey cite security mandates and regulations their T&E solution must comply with either now or in the future. Yet 29% admit their current solution doesn’t meet these regulatory requirements. As alarming as this is, the number and variety of these regulations can make compliance complicated. Organizations must comply with financial reporting requirements like SOC 1-Type 2, as well as cybersecurity frameworks like NIST 800-53. The diversity alone can be difficult to keep up with, not to mention any changes that arise as result of policy updates or emerging threats.

An automated system, however, can help your organization adapt to any changes as they come. Built-in safeguards like data masking and encryption protect sensitive information, while a single sign-on (SSO) or a username and password with two-factor authentication limit access to authorized users. A cloud-based solution can also integrate with existing enterprise resource planning (ERP) software, so you can scale operations while remaining compliant.

Why Sustainability Data and Reporting Matters for Aerospace, Defense, and Government Contractors

On top of regulations like SOC 1-Type 2 and NIST 800-53, some aerospace, defense, and government contracting organizations must comply with sustainability guidelines like the Global Reporting Initiative or the Carbon Disclosure Project. However, more than a quarter of contractors (28%) told Wakefield Research they lack the systems they need to capture sustainability data. With solutions like Concur Travel and Intelligence, you can track your emissions based on your organization’s travel habits and analyze the data using sustainability dashboards. And with a user-friendly interface and mobile apps, you can easily enforce travel policies and empower users, no matter where they are.

Automated Spend Management Solutions for Compliance and Flexibility

Automated spend management is more than just a way for aerospace, defense, and government contractors to stay compliant. It’s a way to stay competitive. An integrated, cloud-based solution can give your organization the efficiency it lacks from manual systems and the flexibility it needs to adapt to future challenges. Most importantly, it can protect your business from noncompliance so it can continue for years to come.

Discover how SAP Concur helps aerospace, defense, and government contractors navigate complex regulations, enhance security, and minimize risk while streamlining operations and maximizing savings. Explore smarter solutions for compliance and control.