Why Honeywell is Integrating SAP for Supply Chain

Manufacturing giant Honeywell is the latest Fortune 500 company to deploy SAP S/4HANA for billing and revenue innovation management.

It is also using SAP Configure Price Quote and SAP Entitlement Management, in a move that streamlines its software supply chain operations and customer delivery processes.

The integrated technology suite consolidates Honeywell's software sales and commercialisation workflows, creating a unified supply chain framework for software distribution across the global organisation.

Streamlining software distribution workflows

Honeywell is a global integrated operating company, serving diverse industries across multiple regions with complex supply chain requirements.

The company's portfolio is built on the Honeywell Accelerator operating system and Honeywell Forge platform.

It partners with organisations to tackle their most challenging and complex problems, delivering practical solutions and innovations across aerospace, building automation, industrial automation, process automation and process technology.

Through its work, the organisation aims to contribute to creating a smarter, safer, more secure and sustainable world.

Addressing fragmented operational processes

Honeywell acknowledges it is facing significant process fragmentation issues, creating bottlenecks in its software supply chain.

Stephen Schott, Senior Director, Software Global Design Model at Honeywell, explains: "We had over 1,000 processes for the organisation and the processes were just very scattered and disorganised."

These disconnected processes created inefficiencies across Honeywell's software provisioning supply chain, from initial quote generation through to final product delivery.

Honeywell turned to SAP, a worldwide leader in enterprise applications and business AI.

For more than five decades, organisations have relied on SAP to optimise their performance by integrating essential business operations including finance, procurement, human resources, supply chain management and customer experience.

Rajesh Ramakrishnan, Director IT, ERP Transformation Programme at Honeywell, says: "We chose SAP because SAP provided products and solutions that integrated our end-to-end software sales and commercialisation process.

"We are talking about SAP BRIM, SAP CPQ and SAP Entitlement Management System, which enabled us to integrate the end-to-end processes."

Integrated solutions for distribution

Honeywell implemented the following solutions to create a seamless software supply chain:

• SAP S/4HANA for billing and revenue innovation management
• SAP Configure Price Quote
• SAP Entitlement Management
• Signed CPQ quotes.

These signed CPQ quotes are automatically connected to SAP BRIM for subscription management and its entitlement management system, creating an unbroken chain from order to delivery.

Accelerating provisioning cycle times

According to Rajesh, SAP enables Honeywell to connect its end-to-end software supply chain processes across the organisation, eliminating traditional handoff delays.

Rajesh says: "BRIM enabled us to automate the subscription order management processes and also downstream in terms of the financial processes and integration.

"The partnership with SAP enabled us to improve the customer experience by reducing the cycle time from quote to provisioning to a few seconds."

This dramatic reduction in provisioning time transforms Honeywell's software supply chain from a multi-stage, time-intensive process into a near-instantaneous delivery mechanism.

The automation of previously manual workflows eliminates traditional supply chain friction points, allows Honeywell to deliver software products to customers more efficiently whilst maintaining accuracy across billing, entitlement and subscription management systems.

Rajesh adds: "SAP has provided us products and solutions that support our software transformation journey at Honeywell."

The implementation demonstrates how digital supply chain integration reshapes software distribution models, particularly for global organisations managing complex product portfolios across multiple regions and customer segments.