Supply issues - the seemingly never-ending issues. I often listen to discussions about the lack of parts and it’s clear to me that we’re going downhill. What is your opinion on supply issues and the ways in which HW is trying to overcome them?
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I worked for Honeywell Aero Supply Chain for decades and unfortunately would have to agree that a large part of the supply issues reside within Honeywell and were only exacerbated by COVID. Supply Chain Management has always been a blind spot for Honeywell with short term objectives prohibiting real long term strategy and sustainable supply chain health. This is a very complex problem...and requires truly brilliant thinkers and leaders to set a new direction. Tactical practitioners are excellent for the near term reactive defense, but this blind spot will remain until the right vision and strategy leadership is put in place. The Aero CEO missed a number of opportunities over the past year to look outside for game changing leadership…recognized industry brilliance …consequential upgrades to ISC and Sourcing leadership roles. Until this happens, Honeywell Aero ISC will continue to underperform to the CEO’s expectations.
HON had supply chain issues way before COVID became an excuse.
HON treats it’s suppliers worse than it treats it’s employees.
Going to take some digging to get out of this mess this time.
Instead of paying your bills every six months, pay your bills on time you might get your supplies.
Honeywell IS the supply issue for our customers. We are chronically late and rarely make commit dates. That is especially true when it comes to paying our vendors.
Honeywell has no parts because we are horrible customers that fails to pay bills in a timely manner. I wouldnt do business with honeywell either. Bad neighbors get no sugar when times are tough.
Lame excuses. By an even more lame company
Honeywell's supply issues cannot simply be blamed on the current global supply problems. Honeywell has shot itself in the foot for all the reasons listed below. Five years in Aero Materials Management and I have seen the way the sausage is made here.
Just in time inventory works great when times are good. Not so good when there are problems and disruptions. A little bit foolish to think supplies will always be available when you expect them to be.
The old 3-legged stool playbook
Pay summplies 30 days late on Net 90 Terms.
Change metrics from on to to delivery to on time to promise.
Lower every 3 years after new Mangers arrive after previous ones were RIF to show improvement.
Charlotte's #1 priority is cash. Means constantly try to get lower prices from vendors, push out terms, vendor managed inventory, zero inventory, off shoring buyers and hiring folks there w/o any knowledge, disruptions from site consolidations /moves to lower cost regions - like Phoenix gears moving to Mexico. None of the priorities help with deliveries (or Quality). I guess they think parts grow on trees.
So Honeywell pays suppliers in 120-180 days, versus others who pay upon receipt or Net 30 days. Who Do YOU think is gonna get their parts faster? ANSWER = Not Us!
Totally agreed @4NA!
That’s a global issue related to supplies from multiple countries like Asia and such. Even if we had the factories here there would be still an issue as we all know how tight the labor market is for factories.
Depending on how much you purchase you move up the list of any vendor.
Apple managed to have almost no issues getting parts but look at how much they purchase . Money and volume talk louder than anything. No magic. It should resolve itself for overseas within 2022. Usa factories may take longer as we have politics interfering with health. This affect the labor as you can’t replace people when they are sick or spread and make more people sick. So I expect more jobs to move overseas simply because we can’t get our sh-t together and stop the politics.