The Defence Enterprise Resource Planning (ERP) Program is a Defence-wide priority and a key part of the Defence transformation agenda.
ERP is enabling Defence to better adapt and evolve to meet strategic challenges, and Defence industry continue to play a key role in supporting the successful implementation of ERP capability.
On 12 May 2025, Defence delivered its fifth and largest ERP Capability release to date, the Tranche 1B Main (T1B Main) release, which brought finance, procurement, supply chain management, transport management, land maintenance and engineering within ERP. This release significantly expanded the number of users accessing ERP in the course of their day-to-day activities within Defence.
Defence is now focused on delivering the remaining ERP capability for Tranche 3, which builds on the capability delivered in Tranches 1 and 2.
Benefits
ERP has introduced the latest SAP solution (SAP S/4HANA), and new and enhanced capability will continue to be delivered over a number of years, in a series of phases called 'tranches'.
The Defence ERP solution seeks to:
- drive alignment and standardisation
- implement fit for purpose IT systems
- encourage better ways of working
- develop and integrated force structure view with measurable inputs to capability.
Change effects
Business operation changes will have varying effects on Defence personnel and Defence Industry.
Defence value the ongoing partnership with industry and is committed to ensuring industry is informed, engaged and supported throughout this transformation as Defence continues to expand ERP capability.
When changes affecting Defence industry are identified, Defence will work collaboratively with industry partners and suppliers to communicate the updates through their designated Defence Key Contact or Contract Manager.
For industry partners in ERP facing roles, training will be provided to those with minimum baseline clearance and Defence login credentials. Note that Defence does not intend to provide ERP training to industry partners who are not directly engaged in ERP facing roles within Defence. For prospective suppliers, pre-SAP training is not a pre-requisite or discriminator for future engagements with Defence.
Features
Timeline
Each tranche includes a discover, prepare, explore, realise, deploy and run phase, and are scheduled to deploy in a staggered approach.
Defence will continue to release Tranche 3 ERP capability in staggered releases until 2030.
| Tranche | Activity | Status |
|---|---|---|
| Tranche 1 Release 1A | An early release of Finance foundations providing an enhanced reporting capability. | Delivered: January 2020 – July 2021 |
| Tranche 3 Release 1A | Introduction of Force Element and Performance and Goals. | Delivered: November 2023 |
| Tranche 2 Case Management | Introduced a simplified, integrated and standardised case management system. | Delivered: May 2024 |
| Tranche 3 Performance and Goals | Introduction of a One Defence end-to-end performance management system. | Delivered: May and October 2024 |
| Tranche 1B Main |
Establishment of the foundations for the Defence ERP transformation including:
|
Delivered: May 2025 |
| Tranche 3 – Capability Enhancement Project 1 (T3EP1) | Enhancements to the Performance and Goals and Case Management ERP solutions, as well as adjustments to the Force Element structure and Job Architecture to align with broader enterprise requirements. | Planned delivery: December 2025 to early 2026 |
| Tranche 3 – Foundation Capability Extension Project 2 (T3EP2) |
Delivering enhancements to the ERP Foundation and the Case Management solution, through a series of Work Packages, to deliver improvements that strengthen existing capabilities.
|
Planned delivery:
|
| Tranche 3 – Upgrade Release (T3UP) project | Uplift of the Defence ERP Solution to the latest S/4HANA software package. No new functionality will be introduced. | Planned delivery: April 2026 |
SAP Business Network Key Information
Contacts
Current industry partners
For questions or further support, reach out to the organisation's Defence key contact (Contract Officer or Commonwealth Representative).
Prospective industry partners
- Office of Defence Industry Support
- Defence Industry Security Program
- Defence ERP Industry Support via defenceerp.programindustry@defence.gov.au