How ERP Solutions Make a Difference with CMMC Compliance

With the Cybersecurity Maturity Model Certification (CMMC) plan now set for the aerospace and defense sectors, the Department of Defense (DoD) requires contractors to adopt stronger cybersecurity measures to safeguard sensitive data. As job shops and discrete manufacturers work to align with these new standards, ERP solutions are proving essential—they’re helping manufacturers simplify compliance and strengthen their operations.

Understanding CMMC and Its Importance for Aerospace and Defense

The DoD introduced CMMC to respond to growing cybersecurity concerns within its supply chain. The framework defines three levels of compliance for CMMC 2.0. For manufacturers handling Controlled Unclassified Information (CUI), Level 2 or Level 3 will be required. Most will need Level 2 unless the manufacturer is handling high CUI priority programs with data critical to national security (in which Level 3 is required).

Here is an overview of the levels: Level 1 Compliance: entry level/basic cybersecurity, 17 practices, FCI data only, includes self-assessment. Level 2 Compliance: advanced cybersecurity, 14 domains, and 110 controls. It handles CUI, including triennial third-party assessment and annual self-assessment. Level 3 Compliance: the highest level of cybersecurity, 14 domains and 110 controls plus another subset of controls, includes triennial third-party assessment and annual self-assessment.

Adhering to CMMC is important for aerospace and defense contractors and potentially a new profitable revenue stream. Compliance safeguards sensitive data, builds trust with government partners, and keeps companies eligible for various contracts.

How ERP solutions support CMMC compliance

ERP solutions help aerospace and defense contractors streamline operations, manage capacity, and help with ISO 9001 or AS9100 certifications. Some ERPs are now taking it a step further and aligning with CMMC and NIST requirements to help with CMMC compliance, making them even more useful tools for contractors in aerospace and defense.

Centralized data management and access control

A major challenge in reaching CMMC compliance is making sure sensitive data is well-managed and only accessible to the right people. ERP systems can help by providing a centralized place to store data, with role-based access controls to specify who can view, edit, or share information. This not only protects sensitive data but also makes it easier to monitor and report—both crucial for CMMC compliance.

Example of role-based access permissions

An ERP system lets companies set access permissions based on each employee’s role, so only the right people can view controlled unclassified information (CUI). This setup lowers the chance of data breaches and helps meet CMMC requirements for access control and data management.

Enhanced cybersecurity features and risk management

Modern ERP systems now have built-in cybersecurity features like data encryption, multifactor authentication, and intrusion detection, all designed to meet essential CMMC requirements. These integrated protections reduce the need for separate cybersecurity tools, offering a streamlined business management and compliance approach.

Example of data encryption and user authentication

Many ERP solutions keep data safe by encrypting it both while it’s being sent and when it’s stored, which meets CMMC requirements for protecting sensitive information. On top of that, multifactor authentication makes sure only authorized users can access the system, cutting down the risk of unauthorized access.

Streamlined auditing and reporting

Managing continuous documentation and evidence of cybersecurity practices for CMMC can be tough without the right tools. ERP systems make this easier by tracking and recording activities, generating audit trails, and keeping records organized and accessible for audits. With this built-in traceability, companies can meet CMMC documentation requirements and stay ready for compliance audits at any time.

Example of automated audit trails

ERP systems automatically create and store audit logs that keep track of user actions, data access, and system changes. This provides a straightforward record of compliance activities, helping aerospace and defense companies more easily show that they meet CMMC standards.

Key benefits of using ERP for CMMC

By leveraging an ERP solution for CMMC compliance, aerospace and defense companies can realize several key benefits:

• Efficiency: Centralizing compliance-related tasks in an ERP saves time, reduces administrative burden, and ensures a more organized approach to managing security requirements.
• Cost savings: Using an ERP system with built-in cybersecurity features reduces the need for separate security solutions, leading to cost savings while ensuring comprehensive protection.
• Scalability: As CMMC requirements evolve, ERP systems can be updated or customized to accommodate new standards, making them a future-proof solution for compliance.
• Competitive advantage: Achieving CMMC compliance through an ERP keeps companies eligible for contracts and enhances their reputation as trusted partners, potentially increasing business opportunities.

Implementing an ERP solution for CMMC compliance

To fully leverage an ERP system for CMMC compliance, aerospace and defense companies should consider the following best practices:

1. Talk with customers to assess what level of compliance they need. If a customer has not already told the business what level to be at, the business most likely needs Level 2 compliance. Some of this information can be in existing contracts.
2. Weigh out the pros and cons of compliance: Verify which systems and processes outside your ERP may need compliance.
3. Educate their teams: CMMC is a hefty topic and will take more than a few hours to learn and get used to. Businesses should set the right expectations that their teams are all learning together.
4. Self-assess and get started: When the business is confident that the pros outweigh the cons, it should immediately tackle the remediation efforts. Compliance is a marathon, not a sprint.

Conclusion

CMMC might be the next step for aerospace and defense contractors looking to boost revenue and profitability. With the right ERP solution, companies can streamline compliance efforts, protect sensitive data, and stay eligible for key government contracts. Integrating cybersecurity into daily operations through ERP not only helps meet today’s standards but also keeps them ready for future regulations, setting up a strong foundation for long-term success in a competitive industry.