Case Study: Kratos Defense & Security Solutions achieves lower material costs and faster deliveries through strategic parts availability with Smart Software

Engineering to Order at Kratos Space – Making Parts Availability a Strategic Advantage

Kratos Defense & Security Solutions’ Kratos Space group, which builds tailored satellite and ground-segment systems, struggled with engineering-to-order complexity: past sales gave no reliable forecast, long component lead times and many assembly variants left contract manufacturers unable to pre-order parts or bid competitively. To close that gap, Kratos turned to Smart Software for statistical forecasting to supplement its business development sales planning.

Smart Software’s forecasts were integrated into a hybrid planning process: a rolling 12‑month assembly-level forecast was produced and merged with Kratos’ opportunity forecast, then exploded through the ERP bill-of-material to create component-level demand for contract manufacturers. That visibility enabled CMs to buy ahead, capture price breaks, and reduce buy-back pressure, driving down material cost, lowering stockout risk and shortening delivery commitments. Over the past three years the Smart Software-enabled approach has cut material costs and allowed Kratos to confidently promise and meet customer delivery dates even with components that have up to six‑month lead times.

Kratos Defense & Security Solutions

Kirk Smith

Vice President of Business Systems Innovation