Textron companies are working together in new ways to maximize our approach to the supply chain. One example: Bell Helicopter and Cessna Aircraft Company are negotiating jointly with vendors to help cut costs on raw materials.

The supply chain received significant attention this year as Textron accelerated its efforts to drive down costs while improving customer satisfaction. In one case at Bell Helicopter, that meant combining buying power with Cessna Aircraft Company to help enhance their cost position with top suppliers. When Bell faced a significant price increase from a raw materials supplier who was also doing business with Cessna, the two Textron units joined forces and presented a united negotiating front. Not only did Bell avoid the increase, but the two businesses successfully applied this strategy to realize savings from other suppliers as well. Practices like joint negotiation, coupled with new strategic global sourcing centers in Poland and those planned for Asia and Mexico, will enable Textron to access lower-cost sources of supply around the globe. And as we continue to drive cost-saving processes across the supply chain, we are using Textron Six Sigma tools to uncover additional opportunities. Led by Textron’s Supply Chain Council, a group of senior manufacturing and sourcing leaders representing each segment, this effort is engaging people at every level of the organization. From sourcing to manufacturing, distribution to field service and support, our businesses are leveraging opportunities as never before.