Honeywell Aerospace Tackles Supply Chain Bottlenecks

Honeywell Aerospace is working to address bottlenecks in its supply chain that have hindered output growth. Despite an 8% year-over-year increase in orders, the company's President and CEO James Currier said only about 2% of its 3,000 suppliers underperformed in the first half of this year.

The laggards prevented Honeywell Aerospace from matching its expected output growth rate. However, Currier noted that a single underperforming supplier can have a significant impact on revenue and profitability.

Honeywell Aerospace is taking corrective measures to improve planning with suppliers and give them better visibility into future demand. The company is also tightening control over its supply base by adding sources for constrained parts and investing in insourcing and multisourcing.