EDA, 5 March 2014 European Synergies & Innovation Directorate MIP. EDA Supply Chain Action Plan - Concept

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1 EDA, 5 March 2014 European Synergies & Innovation Directorate MIP EDA Supply Chain Action Plan - Concept

2 Background (1/2) Code of Best Practice in the Supply Chain - Approved in 2006, limited used of (EBB2) - SB March 2013 : Abolish EBB2 Commence review of the Code of Best Practice in the Supply Chain (including analysing other options of improving supply chain conditions) - in close cooperation with participating Member States and other stakeholders Review of the Code of Best Practice in the Supply Chain: - November 2013 workshop with pms before EDA to draft something, it should discuss with Industry Meeting: - With Industry (ASD/ELC) on 05/09/2013 No need for a Code Need to develop a pragmatic approach Examples of UK practices were given SC21 initiative: goal is to improve the trust between primes and suppliers Accreditation registry: register of Defence industry based on specific and identified criteria (under development) Use the Defence Procurement Gateway 2

3 Background (2/2) Meeting (con t): - With Industry (ASD/SME Secretariat) on 13/01/2014 Need to be closer to the needs and constraints of the Supply Chain - With industrial clusters (CENSEC & EDEN) on 22 & 28/01/2014 Need to come with pragmatic and concrete actions/solutions Need to enhance the flow of information - With Industry (ASD/SC-SME Committee) on 29/01/2014 Need to help SME to grow Need to reflect the transatlantic issues - With NDIAs/ASD in EDA on 05/03/2014 Presentation of the EDA Supply Chain Action Plan for discussion 3

4 EDA Supply Chain Action Plan - Rationale Defence Supply Chain Significant EDTIB Strategy (2007) Directive 2009/81/EC EC Communication (2013) HR/HoA Report (2013) December Council conclusions (2013) Critical Cut of the defence budgets/lack of new programmes Difficult access in the established supply chain Erosion of the engineering skills in EDTIB 4

5 EDA Supply Chain Action Plan - Objective To address supply chain related issues in a comprehensive manner to promote the creation of a globally competitive EDEM and to strengthen the EDTIB through following actions: - Establishing a common understanding of the key elements surrounding the European Defence Supply Chain - Improving information sharing within the European Defence Supply Chain - Supporting the depth and diversity of European Defence supply chain - Enhancing the effectiveness of the European Defence Supply Chain - Evaluating and monitoring the evolution of the European Defence Supply Chain 5

6 EDA Supply Chain Action Plan - Details Establishing a common understanding of the key elements surrounding the European Defence Supply Chain - Analyse/define the European Defence Supply Chain and its key elements (including SWOT analysis) through the EDA relevant activities E.g. Key Industrial Capabilities, Market Monitoring and Security of Supply - Identify and understand other stakeholders roles in the supply chain E.g. Contracting authorities, EDA, EC, NDIAs/ASD, RTOs 6

7 EDA Supply Chain Action Plan - Details Improving information sharing within the European Defence Supply Chain - Further development of the Defence Procurement Gateway to improve the access to information and business opportunities to promote matchmaking, clustering and best practices along the whole Supply Chain - Create and develop Defence Supply Chain Networks (DSCN) NDIAs, ASD, SMEs Associations, defence-related clusters and other relevant participants - Explore other means to improve access to information and business opportunities - Consider organising an annual European Defence Industry Symposium (EDIS) 7

8 EDA Supply Chain Action Plan - Details Supporting the depth and diversity of European Defence Supply Chain - Explore the synergies with wider EU policies in view of promoting access to the various EU funding mechanisms - Identify and promote the practices on other specific funding mechanisms along the supply chain - Explore means to improve cross-border cooperation on innovative research and technologies - Identify pilot cases in specific areas with impact to the supply chain and develop concrete actions to support the European Defence Supply Chain - Reinforce the NDIAs Best practices by providing recommendations to supporting the development of the Supply Chain at European level 8

9 EDA Supply Chain Action Plan - Details Enhancing the effectiveness of the European Defence Supply Chain (1/2) - Seek means to alleviate the defence procurement related administrative requirements - Identify pms practices in registration/certification of the economic operators at national level and promote mutual recognition principles at European level - Support the efficient use of the subcontracting provisions of Directive 2009/81/EC (at pms and Industry levels) by sharing lessons learnt and best practices and by developing concrete models for applying them - Develop other tools and measures to promote the European defence industry s access to cross-border subcontracting opportunities - Work on key skills and competencies and support education and training to enhance Industry s effectiveness 9

10 EDA Supply Chain Action Plan - Details Enhancing the effectiveness of the European Defence Supply Chain (2/2) - Address IPRs issues along the Supply Chain - Identify the impact of SoS/SoI requirements on Supply Chain - Contribute to the creation and development of the networks between defencerelated clusters - Open some of the measures currently focused on the SMEs, as well as including additional ones, to the entire supply chain (also to companies that are bigger than SMEs but that are not prime contractors), with a particular focus on dual-use activities and cross-border cooperation 10

11 EDA Supply Chain Action Plan - Details Evaluating and monitoring the evolution of the European Defence Supply Chain - Undertake regular targeted meetings/information sessions with stakeholders at bilateral, regional and European level - Monitor the impact of Directive 2009/81/EC to the supply chain as part of the EDTIB (part of Market Monitoring workstrand) - Monitor the evolution of European defence supply chain and initiate targeted actions in order to maintain and develop the defence industrial and technological capabilities necessary to meet future military needs - Assess every year the impact of the SCAP and its actions and adapt them as when necessary 11

12 EDA Supply Chain Action Plan Next steps Discuss the details and way ahead with pms experts in March 2014 Present the EDA SCAP to pms for their approval, planned for Spring/Summer 2014 To develop first actions - Identify pms practices in registration/certification of the economic operators at national level and promote mutual recognition principles at European level - Support the efficient use of the subcontracting provisions of Directive 2009/81/EC (at pms and Industry levels) by sharing lessons learnt and best practices and by developing concrete models for applying them 12

13 Discussion & Information Discussion Information - Marian Savu marian.savu@eda.europa.eu - Isabelle Desjeux isabelle.desjeux@eda.europa.eu 13