Case Study | 25 August 2025
How an Aerospace Manufacturer Revamped Its Global Supply Chain to Eliminate Bottlenecks and Achieve Sustainable Growth
Posted by : Sanya Mehra
A prominent European aerospace manufacturer faced mounting difficulties with unpredictable supply chains, rising costs, and fluctuating customer demand. Although it had a strong presence in both defense and commercial aviation, the company struggled with production delays, cost overruns, and lost orders due to poor coordination between supply and demand. To overcome these setbacks, the firm contacted Research Nester Private Ltd for strategic assistance in supply chain management, demand forecasting, and threat minimization. By combining advanced demand planning and supplier diversification strategies, the aerospace company not only stabilized its operations but also returned to profitable and sustainable growth.
An overview:
1. The aerospace manufacturer was founded in Germany during the early 1980s, specializing mainly in precision-engineered components for military aircraft.
2. By the late 1990s, the company expanded into commercial aviation parts, especially in wing assemblies and landing gear systems, where global demand was on the rise due to increasing airline fleets and defense modernization.
3. By 2018, however, the company was struggling to meet commitments. Its dependence on a limited number of suppliers, combined with weak demand forecasting, created production challenges.
4. High penalties from missed delivery timelines, surging raw material costs, and stricter compliance requirements further hampered profitability.
5. After consistent years of decline, leadership realized the need for an expert partner to restructure its demand-supply ecosystem. The firm turned to Research Nester, which deployed a comprehensive framework for aligning production, supplier networks, and demand signals to market realities.
The Story
The company had established itself as one of the most reputable aerospace parts suppliers in Europe by the mid-2000s. It was highly known for its ability to design durable, lightweight, and high-performing components used in aircraft fuselage, engines, and landing systems. Its products were key to both commercial airlines and defense forces across Europe, Asia, and North America.
The firm’s plan to expand production and enter into new markets seemed thought provoking given the steady growth of air passenger traffic and defense budgets worldwide. However, the company underestimated the complexity of scaling its supply chain to match fluctuating customer requirements. By 2018, the following problems had become apparent:
- Supply Chain Vulnerability: The firm relied on only a few raw material suppliers in Eastern Europe. When these suppliers experienced disruptions, production at the aerospace company ground to a halt.
- Weak Demand Forecasting: Instead of relying on advanced data-driven methods, forecasts were largely based on historical patterns and sales assumptions. This resulted in a mismatch, oversupply of low-demand items, and a supply shortage of important components.
- Compliance Challenges: Stringent European Union regulations forced detailed material traceability, but the company’s manual tracking system often led to errors and delayed approvals.
- Financial Losses: Revenue, which was USD 8.9 billion in 2017, dropped to USD 7.1 billion in 2019. Profitability decreased further as late-delivery penalties piled up.
It became apparent that unless the company realigned its supply-demand system, long-term competitiveness was in jeopardy. This realization pushed the leadership team to collaborate with Research Nester for a detailed overhaul.
Our Solution:
Research Nester analysts started with a thorough evaluation of the company's existing supply chain, procurement systems, and demand planning practices. The consultants felt that solving the issue was not just about finding new suppliers, but about developing a stable and adaptive supply-demand environment. The measures introduced included:
Supply Chain Mapping and Diversification
- Identified critical dependencies on single suppliers and recommended multiple vendor options across Europe, Asia, and North America.
- Established secondary partnerships with raw material providers in India and Japan to assure backup in case of regional disruptions.
- Initiated partnerships with raw material suppliers in India and Japan to serve as backup sources during disruptions.
- Strengthened supplier contracts to ensure price stability and timely deliveries.
Advanced Demand Forecasting Models
- Used predictive analytics tools that factored in live market data such as airline fleet expansion, defense budgets, and geopolitical events.
- Made industry-specific demand segments such as commercial airlines, defense forces, and private aviation for more targeted production planning.
Production and Inventory Alignment
- Adopted lean manufacturing principles to reduce waste and concentrate resources on high-demand parts.
- Shifted to a rolling production schedule, updated continuously with new market intelligence, allowing flexible adjustments.
Compliance Modernization
- Used digital traceability systems to track raw materials across the whole chain, from procurement to delivery.
- Automated compliance documentation for European Aviation Safety Agency (EASA) requirements, cutting down manual effort and reducing approval delays.
Risk Assessment and Scenario Planning
- Conducted simulations to test resilience against potential disruptions such as pandemics, political conflicts, and trade restrictions.
- Designed contingency approaches, including rerouting supplies and adjusting output in response to sudden market shifts.
These measures emphasized gave the company improved visibility into its supply chain, better precision in forecasting, and enhanced agility in responding to market changes.
Results
Within three years of following Research Nester’s recommendations, the aerospace firm witnessed a sharp turnaround:
- Revenue Recovery: Sales that had declined to USD 7.1 billion in 2019 recovered to USD 9.6 billion by 2022 and reached USD 11.2 billion in 2023.
- Profitability Growth: Operating margins got better by 14% in two years, backed by smarter inventory management and lower penalty costs.
- Stronger Supply Network: By forming suppliers across three continents, the company lowered reliance on single sources by 40%, lowering exposure to risks.
- Customer Trust: On-time delivery rates improved significantly from 68% in 2018 to 94% in 2023, securing longer-term contracts with major airlines and defense clients.
- Compliance Efficiency: The adoption of digital systems cut compliance-related delays by 35%, allowing faster clearances and timely deliveries.
The company not only regained financial strength but also developed the agility to anticipate and respond to uncertainties in the aerospace sector. Rather than reacting to disruptions, it became capable of predicting trends, adjusting its supply chain, and maintaining profitability in volatile conditions.
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