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Industry Capability Network

Avalon 2017

Opportunities in Defence

1st March 2017

Warwick Strachan

Vice President OperationsThales Group

www.thalesgroup.com.auOPEN

WARWICK STRACHANVP OPERATIONS

Thales Australia

1st March 2017

4OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Thales - Global leadership

N°1worldwide

Payloads for telecom satellites

Air Traffic Management Sonars Security for interbanktransactions

N°2worldwide

Rail signalling systems In-flight entertainmentand connectivity

Military tactical radiocommunications

N°3worldwide

Commercial avionics Civil satellites Military surface radars

€14billion

in revenues

50% from

its supply chain

50% in

France

5OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Thales in Australia

▌A nationwide company3,500 employees Long-term investment in AustraliaLocal research and development priorityCreating a supply chain enterpriseExports of over A$1.6 billion in the past 10 years

Bushmaster image © Australian Department of Defence

6OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

The supply chain enterprise

7OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

The Purchasing Organisation at Thales – A shared service model

33 people Geographically distributed and mobile

Consistent governance across businesses

Cross-fertilisation of best practises

Commodity expertise

Better alignment with Corporate

Coordinated supplier engagement model

Purchasing Director

Michelle Richard

Segment Alignment

Process Improvement Transactional

Integrated Soldier Systems

CBU Alignment

Avionics

Protected Vehicles

Ground Transportation

Systems

Air Traffic Management

Armament Services

Munitions

Maritime

Secure Communications

& Information Systems

Corporate Functions

Segment 1General Expenses

Segment 2 IT Solutions

Segment 5 System & SW Engineering

Segment 4 Industrial

Purchases

Segment 3 Systems and Equipment

Purchasing KPIs

Supplier Improvement Programme

Audits

Supplier Relationship

Management

8OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Purchasing Governance

▌Enterprise Risk mitigation

▌Segregation of Duties

▌Effective competition

▌ Independence of Suppliers

▌Supply selection, standardisation, export control status

▌Coordinate the final Selection with all stakeholders

9OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Supplier Selection criteria

▌Customer focus

▌Cost Competitiveness

▌Continuous Improvement

▌ Innovation

▌ Flexibility

▌Health and Safety

▌Demonstrate willingness to work in partnership with Thales

10OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Thales – the Purchasing Process - worldwide

Technical Requirements

DFMA IssuesTo be

addressed

Scope ofSupply

Terms & Conditions

Request forProposal

or

Requestfor

Information

PVET 1

Request for

TenderBid CostInput PVET 3

Contract ED

Work Package Inputs

PVET 2Negotiation mandate/BAFO

11OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Export market opportunities - Thales Industry Engagement Unit (IEU)

▌ Thales IEU has team members based in Australia, France, UK and North America to:

Identify opportunities for Australian SME’s within Thales global organisationIdentify and engage with Australian SME’s suited to the requirements and facilitate engagement with key decision makers Encourage diversification in SME’s by seeking opportunities in both the Thales Civil and Defence market segmentsSeek out niche companies with new emerging technologies which can be embedded in Thales Group products/offerings to marketWork with Thales Australia procurement and engineering to provide in country opportunities as an enabler to industry gaining export opportunitiesProvide/facilitate training, mentoring and support to SME’s as required

12OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Performance

▌ To date the IEU has:

Engaged with more than 160 Australian SME’sIdentified opportunities for 70 SME’s Resulting in 80 contract wins for 30 SME’s, examples include Laser rangefinders to Thales Netherlands Vehicle training simulators to Thales UK Satellite communication systems to Thales France High tech Security systems to Thales in the Middle East High tech Paging infrastructure (for Emergency Comms Service) to Thales Belgium Supercapacitor technology as an alternative power source (in partnership with TRT France)

Several SME’s are now embedded in Thales solutions leading to repeat contracts over long term

13OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Projects have consequences

14OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

The Hawkei story…

15OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Munitions

16OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

World leading air traffic management

17OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Current areas of interest

▌ SME’s with products/capabilities in the below areas are currently of interest, however new opportunities are emerging regularly – to find out more contact Thales IEU

Video analytic/surveillance capabilitiesUAV/ISR capabilities and toolsCyber security and cryptography hardware and softwareSecure voice, data and commsIntegrated Comms SystemsInnovative battery and power managementSubmarine systems and technology

18OPEN

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Ref number- 23 May 2016Thales Australia Template : 87204467-DOC-AUS-EN-002

Thank you

Adam Watson

Land 400 Project Manager –IndustrialisationBAE Systems

Please contact ICN Vic for info on BAE Systems Presentation

Gary Stewart

Chief Operations OfficerRheinmetall Defence ANZ

Please see PDF of Presentation

Don Matthews

Executive DirectorICN Victoria  

www.icngateway.com.au

Thank You

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