Honeywell Inventory Management Program Reduces Instrumentation Costs, Strengthens Supply Chain Efficiency
"The Inventory Management Program has been in place at our site for about 16 months now, and we are extremely pleased with the service and Honeywell 's responsiveness to our needs," said Bill Mason, Refining and Chemical Warehouse Supervisor with BP Amoco Texas City. "The program has improved our plant margins by reducing cost and by creating a much simpler supply chain for instrumentation. It's an excellent model for buying instrumentation — a definite winner that was the right decision for our site."
The Inventory Management Program provides immediate cost savings because Honeywell is able to leverage its transmitter rangeability advantages and high turn-down ratios to reduce inventory-stocking levels.
The program ensures that customers have reliable instrumentation equipment, when and where they need it. Honeywell conducts a thorough analysis of a transmitter usage and recommends a standardization matrix. If a customer qualifies, Honeywell will buy-back or provide a rebate on the customer's existing inventory and in turn, provide Honeywell-owned and managed transmitters to meet their needs. Property taxes, carrying costs, and maintenance costs are reduced, while shipping and expediting charges are eliminated.
The Inventory Management Program enhances transmitter supply chain efficiency, reducing the associated infrastructure cost at customers' sites. Employees spend less time training on different transmitter models and more time contributing to business results.
Honeywell Automation and Control Solutions (ACS) is a US$8 billion global leader in providing product and service solutions to create efficient, safe and comfortable environments and help business and industry improve productivity and profitability. ACS offers heating, ventilation, humidification and air-conditioning equipment controls, security and fire alarm systems, home automation systems, energy-efficient lighting controls and building management systems and services. It also provides automation systems, advanced software solutions and value-added services used in a variety of industries. ACS is a global supplier of sensors, switches and control products for industrial applications. It comprises four businesses: Industry Solutions, Service, Security and Fire, and Control Products. For more information, access www.iac.honeywell.com.
Honeywell is a US$25-billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; power generation systems; specialty chemicals; fibers; plastics; and electronic and advanced materials. Honeywell employs approximately 120,000 people in 95 countries and is traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. Additional information on the company is available on the Internet at www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.
Honeywell Industry Solutions
16404 N. Black Canyon Highway
Phoenix, AZ 85053
1-800-288-7491