SAP Innovation Awards 2024 – 4469 - Honeywell
Business Innovator Winner: With inflation, rising raw materials and logistics costs, and the risk of supply chain disruptions, Honeywell’s leadership wanted a better approach to manage predictably. They needed better collaboration between 1000+ buyers/planners and 4600+ suppliers. Honeywell selected SAP Business Network Supply Chain Collaboration to improve supplier collaboration in operational procurement, invoicing/payments, inbound logistics, and supplier quality. Honeywell onboarded these suppliers with a $13 billion spend (end of ‘23) to simplify orders, confirmations, shipping notices, and multi-order e-invoicing. Изтегли документаPUBLIC
Entry Pitch Deck
Honeywell International Inc.
Anthony Long
High Tech + Manufacturing
Reimaging Supply Chain Visibility
to Boost Supplier Collaboration
and Performance
Entry Pitch Deck
Honeywell International Inc.
Anthony Long
High Tech + Manufacturing
Reimaging Supply Chain Visibility
to Boost Supplier Collaboration
and Performance
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
2
Honeywell International Inc
Charlotte, North Carolina, USA
High Tech + Manufacturing
https://www.honeywell.com
103,000
Founded in 1885, Honeywell International is an American publicly traded, multinational conglomerate
corporation headquartered in Charlotte, North Carolina with business in 80+ countries. They primarily
operates in four areas of business: aerospace, commercial building technologies, performance
materials and technologies, and safety and productivity solutions.
Suppliers and trading partners represent an integral part of the supply chain for this core business:
• BUILDING AUTOMATION - Over 100 years ago, Honeywell defined energy efficiency by making
indoor comfort automatic. Today, Honeywell redefines it in 10 million buildings using technology,
capabilities, and expertise.
• ENERGY AND SUSTAINABLE SOLUTIONS - Honeywell pioneered automation control in complex
industrial facilities and how to create high-quality and high-performance chemicals and materials.
• INDUSTRIAL AUTOMATION - Each year, Honeywell keeps over half a billion workers safer and
more productive with voice-enabled software, barcode scanners, mobile computers and protective
equipment.
• AEROSPACE TECHNOLOGIES - More fuel-efficient aircraft. More direct and on-time flights. Safer
skies and airports. Honeywell impacts virtually every commercial, defense, and space aircraft.
Honeywell makes the world more sustainable with an array of solutions ranging from sustainable
aviation fuels to low global warming potential refrigerants. They are dedicated to driving the
transformation to a sustainable future and are well on their way to delivering on a commitment to
make all our facilities and operations carbon neutral by 2035.
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company Information
2
Honeywell International Inc
Charlotte, North Carolina, USA
High Tech + Manufacturing
https://www.honeywell.com
103,000
Founded in 1885, Honeywell International is an American publicly traded, multinational conglomerate
corporation headquartered in Charlotte, North Carolina with business in 80+ countries. They primarily
operates in four areas of business: aerospace, commercial building technologies, performance
materials and technologies, and safety and productivity solutions.
Suppliers and trading partners represent an integral part of the supply chain for this core business:
• BUILDING AUTOMATION - Over 100 years ago, Honeywell defined energy efficiency by making
indoor comfort automatic. Today, Honeywell redefines it in 10 million buildings using technology,
capabilities, and expertise.
• ENERGY AND SUSTAINABLE SOLUTIONS - Honeywell pioneered automation control in complex
industrial facilities and how to create high-quality and high-performance chemicals and materials.
• INDUSTRIAL AUTOMATION - Each year, Honeywell keeps over half a billion workers safer and
more productive with voice-enabled software, barcode scanners, mobile computers and protective
equipment.
• AEROSPACE TECHNOLOGIES - More fuel-efficient aircraft. More direct and on-time flights. Safer
skies and airports. Honeywell impacts virtually every commercial, defense, and space aircraft.
Honeywell makes the world more sustainable with an array of solutions ranging from sustainable
aviation fuels to low global warming potential refrigerants. They are dedicated to driving the
transformation to a sustainable future and are well on their way to delivering on a commitment to
make all our facilities and operations carbon neutral by 2035.
CHALLENGE: SOLUTION: OUTCOME:
Reimaging Supply Chain Visibility to Boost
Supplier Collaboration and Performance
3
6.4K suppliers onboarded through the SAP
Business Network with a team of 8 (Dec 2023)
$6.6 billion in total spend through the
system covering 80+ countries (Dec 2023).
6.52 million pieces of paper saved per year
with electronic transactions.
6.4K
Honeywell International Inc.
$6.6B 6.52M
With inflation, rising raw materials and logistics costs, and the risk
of supply chain disruptions, Honeywell’s leadership wanted a
better approach to manage predictably.
• Lacked collaboration between 1000+ buyers/planners and
16,000+ suppliers to managed direct material replenishment.
• Limited visibility into their supply chain processes, making it
difficult to track and monitor, which resulted in inefficiencies,
delays, and increased costs.
• Large customer order backlog due to purchase material
shortages.
• Operating in regulated industries with complex compliance
and regulatory requirements.
A Honeywell project team of just 8 team members took on the
challenge with a clear mission: “To do more with less.”
Honeywell selected SAP Business Network Supply Chain
Collaboration to improve supplier collaboration in operational
procurement, invoicing/payments, inbound logistics, and
supplier quality to address:
• Managing the supplier network and relationships
including onboarding, performance monitoring, risk
assessment, and compliance management.
• Ensuring real-time visibility into the entire supply chain
supplier network
• Centralizing collaboration with suppliers, logistics and
transportation partners, and other stakeholders
• Improving demand planning and forecasting to optimize
materials movement and inventory levels
With better data accuracy and execution, Honeywell’s
operations could be transformed.
Honeywell onboarded 6,600+ suppliers with a $6.6 billion
spend to simplify orders, confirmations, shipping notices, and
multi-order e-invoicing. Outcomes realized (end of ‘23):
• 96% of the first pass yield on invoice matching, while
reducing the effort needed for invoice reconciliation
• 100% of P.O.s integrated to the network (once onboarded);
emails are no longer used for P.O. communications.
• 89% of the order confirmation saved time based on
eliminating manual confirmations
• 94% on time payments; (up from 74% in ‘22)
• 100% of shipping terms correct
• 99% of all P.O.’s will, as a goal, flow through the SAP
Business Network; up from the current 63%.
Honeywell focused on impacting value drivers and KPIs.
Reimaging Supply Chain Visibility to Boost
Supplier Collaboration and Performance
3
6.4K suppliers onboarded through the SAP
Business Network with a team of 8 (Dec 2023)
$6.6 billion in total spend through the
system covering 80+ countries (Dec 2023).
6.52 million pieces of paper saved per year
with electronic transactions.
6.4K
Honeywell International Inc.
$6.6B 6.52M
With inflation, rising raw materials and logistics costs, and the risk
of supply chain disruptions, Honeywell’s leadership wanted a
better approach to manage predictably.
• Lacked collaboration between 1000+ buyers/planners and
16,000+ suppliers to managed direct material replenishment.
• Limited visibility into their supply chain processes, making it
difficult to track and monitor, which resulted in inefficiencies,
delays, and increased costs.
• Large customer order backlog due to purchase material
shortages.
• Operating in regulated industries with complex compliance
and regulatory requirements.
A Honeywell project team of just 8 team members took on the
challenge with a clear mission: “To do more with less.”
Honeywell selected SAP Business Network Supply Chain
Collaboration to improve supplier collaboration in operational
procurement, invoicing/payments, inbound logistics, and
supplier quality to address:
• Managing the supplier network and relationships
including onboarding, performance monitoring, risk
assessment, and compliance management.
• Ensuring real-time visibility into the entire supply chain
supplier network
• Centralizing collaboration with suppliers, logistics and
transportation partners, and other stakeholders
• Improving demand planning and forecasting to optimize
materials movement and inventory levels
With better data accuracy and execution, Honeywell’s
operations could be transformed.
Honeywell onboarded 6,600+ suppliers with a $6.6 billion
spend to simplify orders, confirmations, shipping notices, and
multi-order e-invoicing. Outcomes realized (end of ‘23):
• 96% of the first pass yield on invoice matching, while
reducing the effort needed for invoice reconciliation
• 100% of P.O.s integrated to the network (once onboarded);
emails are no longer used for P.O. communications.
• 89% of the order confirmation saved time based on
eliminating manual confirmations
• 94% on time payments; (up from 74% in ‘22)
• 100% of shipping terms correct
• 99% of all P.O.’s will, as a goal, flow through the SAP
Business Network; up from the current 63%.
Honeywell focused on impacting value drivers and KPIs.
4
Future-proofing for what’s down the road is based on
what we do today. The ‘One Honeywell Portal’
powered by SAP Business Network Supply Chain
Collaboration helps us withstand the forces of change
in the short and longer-term, to positively impact all
stakeholders including buyers, planners, suppliers, and
most importantly, customers.
Anthony Long
Chief Procurement Officer, Honeywell
Future-proofing for what’s down the road is based on
what we do today. The ‘One Honeywell Portal’
powered by SAP Business Network Supply Chain
Collaboration helps us withstand the forces of change
in the short and longer-term, to positively impact all
stakeholders including buyers, planners, suppliers, and
most importantly, customers.
Anthony Long
Chief Procurement Officer, Honeywell
GLOBAL CHALLENGES BUSINESS CHALLENGES
Challenges and Objectives 1 of 2
5
Honeywell faced persistent global supply chain disruptions, along with rising cost
inflationary pressures, which directly impacted customers’ expectations around
delivery.
Operating in 80+ countries, they faced many global, regional and local challenges
including:
• End-to-end supply chain visibility, which they need to track and monitor
from buyer/planner to supplier to the customer(s).
• Ensure that suppliers adhere to Honeywell guidelines and perform
• On time payment to suppliers with faster, more efficient cycle times
• Keeping top quality suppliers and on-boarding new ones; diversify the
suppler base for parts and raw materials replenishment
• Geographies are in constant change due to seen and unseen geoeconomic
factors
• Regulatory compliance is ever changing around the world
The challenge was to have a central portal for faster responses to market
conditions.
As a result, Honeywell took on the challenge to prevent (and/or minimize)
disruptions, improve planning collaboration around materials and goods including
minimum levels on hand, ensure accurate commitments, grow the overall supply
chain visibility, and enable traceability around quality issues.
Honeywell faced business challenges to improve supplier collaboration in
operational procurement, invoice/payments, inbound logistics, supplier quality,
and delivery performance. Top priorities included:
• Delivering ‘One Honeywell Portal’ versus multiple supplier portals
for end-to-end supply chain visibility.
• Enabling 1000+ buyers/planners and many other internal/external
stakeholders to manage their part of the end-to-end procurement process.
• Onboarding and engaging suppliers ensuring that they understand how the
system works, and have the capabilities to collaborate effectively.
• Ensure supplier payments are on time and eliminate the need for escalations.
• Reducing manual tasks processing invoices, eliminating manual confirmations.
• No paper invoices; all POs and invoices through the supplier portal.
• Achieving On Time In Full Delivery (OTIF) deliveries, optimizing compliance
and growing network usage.
• Handling increased volumes of data, scalability, and transactions to maintain
optimal performance between different SAP and 3rd party systems.
• Addressing smooth adoption by all internal/external stakeholders including
training, communications, and identifying resistance to change.
For Honeywell, these challenges required a foundational central platform to
maintaining accurate and high-quality data which is consistently updated, validated,
and synchronized across different SAP and 3rd party systems.
Challenges and Objectives 1 of 2
5
Honeywell faced persistent global supply chain disruptions, along with rising cost
inflationary pressures, which directly impacted customers’ expectations around
delivery.
Operating in 80+ countries, they faced many global, regional and local challenges
including:
• End-to-end supply chain visibility, which they need to track and monitor
from buyer/planner to supplier to the customer(s).
• Ensure that suppliers adhere to Honeywell guidelines and perform
• On time payment to suppliers with faster, more efficient cycle times
• Keeping top quality suppliers and on-boarding new ones; diversify the
suppler base for parts and raw materials replenishment
• Geographies are in constant change due to seen and unseen geoeconomic
factors
• Regulatory compliance is ever changing around the world
The challenge was to have a central portal for faster responses to market
conditions.
As a result, Honeywell took on the challenge to prevent (and/or minimize)
disruptions, improve planning collaboration around materials and goods including
minimum levels on hand, ensure accurate commitments, grow the overall supply
chain visibility, and enable traceability around quality issues.
Honeywell faced business challenges to improve supplier collaboration in
operational procurement, invoice/payments, inbound logistics, supplier quality,
and delivery performance. Top priorities included:
• Delivering ‘One Honeywell Portal’ versus multiple supplier portals
for end-to-end supply chain visibility.
• Enabling 1000+ buyers/planners and many other internal/external
stakeholders to manage their part of the end-to-end procurement process.
• Onboarding and engaging suppliers ensuring that they understand how the
system works, and have the capabilities to collaborate effectively.
• Ensure supplier payments are on time and eliminate the need for escalations.
• Reducing manual tasks processing invoices, eliminating manual confirmations.
• No paper invoices; all POs and invoices through the supplier portal.
• Achieving On Time In Full Delivery (OTIF) deliveries, optimizing compliance
and growing network usage.
• Handling increased volumes of data, scalability, and transactions to maintain
optimal performance between different SAP and 3rd party systems.
• Addressing smooth adoption by all internal/external stakeholders including
training, communications, and identifying resistance to change.
For Honeywell, these challenges required a foundational central platform to
maintaining accurate and high-quality data which is consistently updated, validated,
and synchronized across different SAP and 3rd party systems.
PROJECT OBJECTIVES WHY SAP
Challenges and Objectives 2 of 2
6
The core project team objectives included: improving supplier collaboration,
operational procurement, invoicing/payments, inbound logistics, supplier quality,
and reducing costs. Priorities included:
• Streamlining procurement processes by optimizing spend management,
automating workflows, reducing manual intervention and improving order
accuracy.
• Enhancing supply chain visibility by increasing transparency including
real-time tracking of orders, shipments, and inventory levels from the
buyer/planners to the suppliers.
• Improve supplier collaboration by enabling access to “One Honeywell
Portal” with access to relevant information, submitting bids, and respond to
purchase orders to replenish materials and delivery orders on time.
• Accelerate invoice processing and payment by automating the processes,
minimizing errors, and expediting payment cycles with a focus on electronic
invoicing, approval workflows, and integration with the financial system.
• Enhance data analytics and reporting to generate meaningful insights to
monitor key performance indicators (KPIs) and identify areas for
improvement.
Honeywell and SAP have a close partnership and a well-defined project
governance with full executive sponsorship.
The team used the SAP Activate Methodology to accelerate the implementation
and rollout while maintaining quality.
There was a lot riding on this initiative.
Honeywell had important customer requirements and marketplace conditions to
address such as inflation, increases in materials costs, and supply shortages,
which could only be addressed with a single, platform solution by way of the SAP
Business Network Supply Chain Collaboration.
The senior leadership team identified this project as a top strategic priority.
Honeywell saw a win-win advantage in moving forward.
• They could achieve their requirements in the short-run, and also benefit from
the product roadmap, which would continue to optimize the solution including:
o Clear direction for the roadmap with planned features, enhancements, and
improvements, and how it aligned to their own objectives.
o A feedback loop so that their suggestions and requirements were heard.
o Strong user experience capabilities and the ability to integrate with other
SAP and third-party products.
SAP also saw many advantages
• With Honeywell's spend goal and the velocity of maintaining and onboarding a
large group of suppliers, there could be a sharing of insights. Thankfully,
Honeywell had a series of best practices for onboard suppliers for supply chain
collaboration which were adopted by SAP to benefit other customers.
Overall, Honeywell valued the roadmap and SAPs agility to help them achieve
aggressive, and achievable goals in the short and long-term.
Challenges and Objectives 2 of 2
6
The core project team objectives included: improving supplier collaboration,
operational procurement, invoicing/payments, inbound logistics, supplier quality,
and reducing costs. Priorities included:
• Streamlining procurement processes by optimizing spend management,
automating workflows, reducing manual intervention and improving order
accuracy.
• Enhancing supply chain visibility by increasing transparency including
real-time tracking of orders, shipments, and inventory levels from the
buyer/planners to the suppliers.
• Improve supplier collaboration by enabling access to “One Honeywell
Portal” with access to relevant information, submitting bids, and respond to
purchase orders to replenish materials and delivery orders on time.
• Accelerate invoice processing and payment by automating the processes,
minimizing errors, and expediting payment cycles with a focus on electronic
invoicing, approval workflows, and integration with the financial system.
• Enhance data analytics and reporting to generate meaningful insights to
monitor key performance indicators (KPIs) and identify areas for
improvement.
Honeywell and SAP have a close partnership and a well-defined project
governance with full executive sponsorship.
The team used the SAP Activate Methodology to accelerate the implementation
and rollout while maintaining quality.
There was a lot riding on this initiative.
Honeywell had important customer requirements and marketplace conditions to
address such as inflation, increases in materials costs, and supply shortages,
which could only be addressed with a single, platform solution by way of the SAP
Business Network Supply Chain Collaboration.
The senior leadership team identified this project as a top strategic priority.
Honeywell saw a win-win advantage in moving forward.
• They could achieve their requirements in the short-run, and also benefit from
the product roadmap, which would continue to optimize the solution including:
o Clear direction for the roadmap with planned features, enhancements, and
improvements, and how it aligned to their own objectives.
o A feedback loop so that their suggestions and requirements were heard.
o Strong user experience capabilities and the ability to integrate with other
SAP and third-party products.
SAP also saw many advantages
• With Honeywell's spend goal and the velocity of maintaining and onboarding a
large group of suppliers, there could be a sharing of insights. Thankfully,
Honeywell had a series of best practices for onboard suppliers for supply chain
collaboration which were adopted by SAP to benefit other customers.
Overall, Honeywell valued the roadmap and SAPs agility to help them achieve
aggressive, and achievable goals in the short and long-term.