Carrier moves to strengthen and optimise supply chain

USA: Carrier has announced a new programme to optimise its supply chain and drive cost savings of $600m.

Carrier says that its Carrier Alliance programme will both strengthen and lengthen strategic relationships with suppliers and provide certainty, security and growth opportunities for Carrier and its key suppliers.

Dave Gitlin, Carrier’s president and CEO insisted that the Carrier Alliance would be “a win-win-win” for its customers, suppliers and shareholders.

“Longer and broader supplier engagements are expected to provide greater confidence in uncertain times while delivering cost savings to drive investment in R&D, services and digital to benefit our customers and ultimately grow the business,” he said.

It is said that the new programme will directly support the Carrier 600 programme, which targets $600m in cost savings over three years. This previously announced initiative will fund strategic initiatives, described by Carrier as strengthening and growing Carrier’s core businesses, expanding into targeted product and geographical adjacencies, and enhancing its services and digital solutions.

Carrier says it will work with its business advisor, Deloitte Consulting, to assess and implement supply chain improvement opportunities including material cost productivity, supply base optimisation, alternative sources and new supplier partnerships.

“With this programme, we will be able to offer our suppliers the opportunity for more strategic, meaningful, long-term relationships,” said Rishi Grover, Carrier’s senior vice president, operations. “The programme will facilitate a reduction in the overall number of suppliers and tactical relationships while providing the opportunity for our strategic suppliers to grow with Carrier. We will achieve this objective while minimising any single point of failure in the supply chain.”