Supply Chain's Deep DiveSupply Chain's Deep Dive

Construction of one of the U.S. Navy's most important next-generation weapons systems, the Virginia-class nuclear submarine, will be helped along by new supply-chain software that IBM is delivering to one of the sub's primary contractors.

Under a multiyear contract, IBM will supply and operate its new Spars (Shipbuilding Partners and Suppliers) marine electronic supply-chain application for the Electric Boat division of defense contractor General Dynamics Corp. Financial terms of the deal weren't disclosed, but both IBM and General Dynamics are part of the Spars Consortium, which helped fund the software project.

The deal marks the first commercial implementation of Spars, which automates collaborative-business processes, including bidding, invoicing and payment, and document management. The software's development also was funded in part by the federal government under the National Shipbuilding Research Program, aimed at developing advanced technologies for the Navy.

Spars incorporates IBM business-integration and middleware applications, including WebSphere and DB2, and numerous custom applications to facilitate electronic business-process integration. The software has to adhere to tougher standards than commercial supply-chain applications. For instance, it must meet the International Traffic in Arms Regulation security standard, which protects data using certain combinations of existing encryption standards, says Richard Bolton, general manager of the Spars consortium.

It also must provide strong electronic document collaboration, because military weapons systems are subject to levels of review between private industry and the military "that can be somewhat excruciating," Bolton says.

General Dynamics officials say the software will enable them to speed up parts procurement and simplify manufacturing processes because they'll no longer have to rely on using a mix of faxes, mail, and E-mail to get things done.

It's too early to tell how much money General Dynamics could save by using the system, a company spokesman says. But in a pilot test with 52 suppliers, the contractor shortened its cycle time for parts procurement from 30 days to 10. Ultimately, hundreds of General Dynamics' partners are expected to link to Spars.

IBM is hosting the application for the defense contractor from its e-Business On-Demand center in Secaucus, N.J. A T1 (1.5-Mbps) line connects the system to Electric Boat's shipyard in Groton, Conn.

The Navy plans to launch its first Virginia-class submarine--the 377-foot nuclear-capable USS Virginia--next year, with three more rolling off the assembly line in the following three years. "Spars will likely be applied to their construction," the General Dynamics' spokesman says. Virginia-class submarines will be able to steam faster than 25 knots, launch Tomahawk cruise missiles, and dive to depths beyond 800 feet. General Dynamics' Electric Boat division is building the first four with Northrop Grumman Newport News, a division of Northrop Grumman Corp., under a $4.2 billion contract with the Navy.

Ultimately, the Navy plans to order 30 Virginia-class submarines. Contractor Northrop Grumman will use the Spars system, too.