Welcome to the UTC Aerospace Systems Supplier web page. Our supply chain is focused on fulfilling customer requirements either directly or indirectly. The supply chain not only includes the OEM manufacturers and suppliers, but also transporters, warehouses, retailers, and customers. Overall, our supply chain aspires to deliver world class products and services. For more information about UTC Aerospace’s supply chain, please read the Frequently Asked Questions.
Who is in charge of supply chain? Do our past interfaces change as a result of the acquisition?
The structure of our new organization, UTC Aerospace Systems (UTAS), will include two segments: Aircraft Systems (AS) and Power, Controls & Sensing Systems (PC&SS) which both report into UTC Propulsion Aerospace Systems (PAS). Within AS and PCSS, the VP’s of Operations, Paolo Dal Cin and Tony Wurmel will be responsible for driving Operational execution. Dan Ostrosky and Robert Murray constitute the Supply Chain leadership for this new enterprise to enable delivery performance to our customers.
Furthermore, nothing will change in our day-to-day transactions and the same Supply Chain Management team including our buyers and quality engineers will continue to work with you and answer any questions. Please continue to utilize the same supplier portals, ship to the same locations, and invoice the same entity as you did yesterday.
What is the expectation of Goodrich / Hamilton Sundstrand from the supply base; how will you measure our performance? (metrics: cost reduction, delivery, etc.)
Our customers expect a strong value proposition, innovative products and solutions, perfect quality, on-time delivery, and a focus on continuous improvement. As such, suppliers will be measured under the UTC Supplier Gold program based on their ability to meet and exceed requirements across, but not limited to: value, quality, delivery, customer satisfaction, and the UTC lean assessment.
What opportunities are available for suppliers for incremental business as a result of the deal?
Our combined annual sales of ~$12B (2011 pro forma) and future growth prospects provide tremendous upside opportunities for our suppliers. As part of our integration planning, we have also identified cost-saving opportunities and will be looking for supplier support to achieve these savings. Proactive suppliers are coming forth with opportunities for consideration. Those who are proactive with high quality and delivery performance have the best position for growth with UTC Aerospace Systems for the future.
What is the strategy of the enterprise?
Together, we will create value through a fully integrated UTC Aerospace Systems by delighting customers, developing superior technology, and creating a world-class workforce with an emphasis on safety, ethics, and high performance. Goodrich has strengths in many systems, including landing gear, braking systems, interiors, sensing systems, nacelles, and intelligence, surveillance and reconnaissance systems just to mention a few. Hamilton Sundstrand also has strengths that are complementary to Goodrich’s, including environmental controls, propellers, and fire protection systems. The combination of product portfolios will be complementary across the airframe with an ability to provide components for major platforms in large commercial planes, business/regional planes, defense/space, helicopters and engines.
What is the expected growth and forecast? (volume)
We have leading content on all major new programs making us poised for an expectation of significant growth.
What quality program will we follow? (e.g. Goodrich Operating System (GOS) or Supplier Gold)? Can you tell us about the going forward program at a high level?
UTC Aerospace Systems will follow the UTC Supplier Gold program – a program that facilitates and accelerates supplier performance improvements while recognizing suppliers who have achieved exceptional performance. The Supplier Gold Program establishes four levels of supplier achievement: Gold (the highest standard), Performing, Progressing, and Under-performing. Suppliers who achieve Supplier Gold status receive considerable benefits and recognition. First and most important, Gold suppliers realize substantial improvements in operating performance, which enables growth. The Supply Management Council, which consists of the Vice President of Supply Management at each Strategic Business Unit, is made aware of them. UTC features their top suppliers in industry publications. Ultimately, it’s UTC’s strategy to grow our business with Gold suppliers.
What are the focal areas of the new enterprise for supply chain synergies?
The integration planning teams at Hamilton Sundstrand and Goodrich are working extremely hard on identifying ways to increase efficiency by capitalizing on synergies. It is clear that the combined organization will have major spend and opportunities in all Product commodities including, but not limited to: Machining, Castings, Forgings, Distributed Hardware, Electronics, and Engineered Items. Additionally, there is focused activity in the Non Product commodities as well.
Can you share what centers of excellence that you are anticipating for LCC (Low Cost Country) centers / value streams?
We are in the process of finalizing the proposed structure and will make further announcements post closing and as the business evolves. Both UTC and Goodrich have shown their commitment to actively managing cost structure to ensure market competitiveness and shareholder return.
What happens with the supply chain contacts in the new enterprise, post closing?
Until further notice, nothing will change in our day-to-day transactions and the same Supply Chain Management team of buyers and quality engineers will continue to work with you and answer any questions. We will make further announcements for organizational changes, as necessary, as the business evolves.
What happens to our existing contracts already in place with either Goodrich or Hamilton Sundstrand?
Of course, we will honor our commitments just as we expect suppliers to honor their commitments to us. As a combined entity, we will be looking for ways to grow our business with suppliers that can provide incremental value to our enterprise.
Should I expect that long term contracts (such as services, spares or Product Support Agreements) will be changed / renegotiated?
For new agreements and/or negotiations we will use the UTC standard Terms and Conditions and will be implementing a standard LTA across UTC Aerospace Systems.