Here is a scenario that we seem to see all of the time. Honeywell 331 customers have run into
massive part delay issues. In a playbook taken from the not so smooth Boeing 787 Dreamliner project,
Honeywell has decided to start outsourcing its engine parts from various overseas suppliers. Reports state that the
331 parts are coming from possibly Mexico, the Czech Republic, and India. Hindustan Aeronautics has been license
building the TPE331 engines for some time, and started to supply Honeywell globally in 2008. It is no suprise that
these items are being outsourced. But if outsourcing is so muchmore profitable, then why cant they stock these more
profitable parts on the shelf? I seem to see a trend with outsourcing. That trend seems to include lower
customer service, higher customer acqusition costs (becuase of express freight), lower customer profitability
(becuase their aircraft an unable to fly) and a significantly higher level of customer disatisfaction.
This process doesnt seem to be working very well, does it?
