Why SIOP matters in aerospace and defense—and how to build a process that works 

Supply chain challenges aren’t going away anytime soon. Here’s how leading aerospace and defense (A&D) companies are using Sales, Inventory, and Operations Planning (SIOP) to increase resilience, improve forecasting, and align operations. 

Key takeaways 

• SIOP helps A&D companies stay ahead of disruption by aligning supply, demand, and operations. 

• The four pillars of any successful SIOP implementation include technology and tools, processes, people, and data. 

• You don’t have to overhaul everything at once—start small, find quick wins, and scale what works. 

Amid today’s uncertainty, the A&D industry is facing unprecedented supply chain challenges. From shifting demand to global disruptions, companies are navigating constant volatility and complexity. But in the midst of all the chaos, one thing’s become clear: success is going to those aligning their operations and resources to keep up with the rapid pace of change.  

That’s where SIOP can help. It’s a process that integrates plans across key business functions to align supply and demand, optimize inventory levels, improve customer service, and boost profitability. With the right tools, processes, people, and data, SIOP isn’t just a safety net—it’s a strategy that turns disruption into opportunity and supports long-term growth.  

Let’s take a closer look at what goes into building an effective SIOP strategy—and why it matters now more than ever. 

Why traditional planning isn’t cutting it anymore 

The A&D industry is facing challenges that traditional planning processes just weren’t designed to handle. In fact, Highspring’s Agility Index Report found that a staggering 56% of organizations can’t move teams to a new initiative within three weeks. Shifting demand, economic uncertainty, military spending cuts, and global supply chain issues—from tariffs to labor shortages—are disrupting operations at every level. These challenges make it harder to manage inventory, coordinate suppliers, and plan effectively across teams. That’s why more A&D organizations are investing in advanced SIOP capabilities. When done right, SIOP provides a framework that connects departments, aligns goals, and improves decision-making across the business. 

But success doesn’t come easy. Inconsistent processes, siloed data, outdated systems, and limited cross-functional buy-in can all stall progress. That’s why aligning your technology, processes, people, and data is the first—and most important—step. 

The four pillars of an effective SIOP strategy 

SIOP works best when four key pieces are accounted for. Here’s what they are, why they’re important, and best practices to put them into action. 

1. Technology and tools 

For any SIOP strategy to succeed, the technology behind it needs to scale with the business, integrate seamlessly, and be easy for teams to use. Too often, outdated tools and a heavy reliance on spreadsheets make it difficult to drive adoption across the organization. 

Best practices: 

• Choose scalable platforms that can grow with your organization. 

• Use advanced artificial intelligence (AI) to analyze data and uncover trends that manual analysis might miss. 

• Adopt digital twin technology to simulate operations and optimize planning. 

The right tools don’t just support SIOP—they lead to smarter, faster, and more proactive decisions. 

2. Processes 

Without clearly defined and well-documented processes, SIOP can quickly become a chaotic exercise marked by inefficiencies and conflicting priorities. 

Best practices: 

• Assess and map current processes: Evaluate existing workflows, identify inefficiencies, and benchmark against best practices to uncover opportunities for improvement. 

• Establish clear governance and cadence: Define ownership, meeting schedules, and decision rights across sales, operations, finance, and supply chain to ensure consistent execution and accountability. 

• Enable the right technology and data infrastructure: Implement or optimize planning tools like Kinaxis, Blue Yonder, or Anaplan and integrate data sources to automate workflows, improve visibility, and eliminate manual work. 

• Build a KPI-driven planning framework: Embed performance metrics—such as forecast accuracy, service levels, and inventory turns—directly into the SIOP process to guide decisions and track progress. 

• Align teams and drive adoption: Foster cross-functional collaboration through training, change management, and playbooks so teams operate from a shared plan and common goals. 

Standardization doesn’t have to come at the expense of agility. When workflows are consistent but adaptable, teams can operate efficiently without becoming rigid. 

What happens without established processes: 

When SIOP processes aren’t aligned, it can lead to duplicated work, missed deadlines, and inconsistent results. Over time, that erodes trust in the broader strategy and slows down adoption across the organization. 

3. People 

Even the best tools and processes won’t succeed without the right people leading adoption and execution. Cross-functional alignment and strong leadership support are essential to turning SIOP from a theoretical concept into a strategic advantage. 

Best practices: 

• Secure executive buy-in to make SIOP a clear organizational priority. 

• Establish ownership by appointing a dedicated SIOP leader. 

• Involve all key functions—including operations, supply chain, sales, finance, and IT—in the planning process. 

• Empower teams by hiring or upskilling talent with strong digital capabilities. 

4. Data 

Data lies at the heart of SIOP. Without accurate, timely, and relevant inputs, the entire process can break down under the weight of misinformation or outdated insights. 

Best practices: 

• Implement a robust data governance framework to protect data integrity and quality. 

• Ensure seamless integration between enterprise resource planning (ERP) systems, production tools, and other key platforms. 

• Generate actionable insights that directly support leadership priorities. 

What happens with poor data: 

When data is unreliable or fragmented, SIOP can’t deliver on its promise. That leads to inventory mismatches, poor goal alignment, and declining stakeholder confidence. 

How technology is improving SIOP data: 

Emerging technologies like machine learning are transforming how companies manage and apply data. AI tools can now regularly scan historical trends and external variables in real time, providing faster insights and more accurate inventory forecasts than ever before. By harmonizing data across functions, enabling scenario modeling, and building real-time dashboards, Highspring helps clients turn raw data into reliable, actionable insights that improve decision-making and drive performance. 

How SIOP builds resilience in aerospace and defense 

With a strong SIOP process in place, organizations can improve their ability to prepare for supply chain disruptions and respond quickly when they happen. It helps optimize working capital, manage inventory levels and costs, align cross-functional goals, and boost profitability—even in unpredictable market conditions.  

A&D companies without an effective SIOP strategy risk falling behind during times of uncertainty. But the ones getting it right are turning that uncertainty into a competitive advantage. 

Start building your SIOP strategy today 

The best way to begin—or improve—your SIOP strategy is by taking small, focused steps. Ask yourself: Where do we stand across our tools, processes, people, and data? What quick wins can we deliver in the next 3-6 months to drive long-term success? If you’re having trouble answering those questions, Highspring provides current state assessments across business functions and helps define and implement future state efficiencies. With deep industry expertise, our award-winning supply chain team helps A&D companies implement and scale SIOP strategies that deliver real results.  

Let’s talk about how to future-proof your operations with a tailored SIOP strategy built for aerospace and defense. Don’t just react to change—lead through it. Contact us today. 

FAQ: Why SIOP matters in aerospace and defense—and how to build a process that works