What Happens If Your Supplier Delays Even Just a Single Delivery? Laundry Turnover And Ruined Reputation

It happened to General Dynamics, which recorded a quarter with fewer completed deliveries than expected.

We don’t know the extent of the financial and reputational damage, but if CEO Phebe Novakovic publicly attacked Honeywell, one of the company’s main partners, it is clear that it is something serious.

On the other hand, General Dynamics, an American company specializing in military supplies, is a global giant: this is certified by the 39.41 billion turnover in 2022.

Perhaps this is precisely the reason why Novakovic did not send them to Honeywell executives, guilty of having “missed” a few too many deadlines in the delivery of what was foreseen in the stipulated contracts.

Given the high standards, finding a hole in the balance sheet is not contemplated in the philosophy of General Dynamics, above all because it is not just an economic factor.

It is the reputation that must be preserved, because if you operate in the military field the margins for error are very low, as a customer’s needs are even more pressing than normal.

Even if this seems like a problem only for companies like General Dynamics, in reality, this way of interpreting and doing business should be the basis of any commercial activity that aspires to become a sector leader.

The difference between those who dominate their market and those who are content with crumbs can be seen precisely in these details.

And the fact that Honeywell delayed some deliveries, causing a blockage in the supply chain, was a detail of no small importance for General Dynamics.

Not just immediate damage (with fewer planes delivered by the American company compared to 2022), but the projection of greater damage in terms of turnover and, above all, in terms of reputation.

What would happen to General Dynamics, like any other company, if it no longer had the trust of its customers?

It would begin to lose one and then continue to lose others in a cascade, at least until it is possible to patch up the problem and give concrete guarantees.

If a customer cannot trust you and your service to be on time, then they will inevitably choose someone else.

This is why General Dynamics was keen to release the name of the culprit. According to what the CEO stated in the press conference if it were not for Honeywell’s errors the company would be able to meet deliveries and satisfy customers as usual.

Instead, supplier delays have made production less efficient than it needs to be, allowing the defense giant to always aim for the best and maintain its leadership.

This is unacceptable for General Dynamics.

It should be the same for any other company because if the objective is to grow and ward off the competition, the first thing to do is to ensure business continuity so as not to leave even a glimmer of possibility for competitors to insinuate themselves into one’s market share and steal customers.

The secret of success, therefore, lies here. Consequently, therefore, it depends on the partner with whom you decide to collaborate and to whom you entrust your shipments.

If the delivery times of the supply are not respected, you have two options:

  • delays the production chain and, as a result, the entire sales planning changes;
  • you turn to another partner, hoping that they will be able to meet your and your customers’ expectations quickly.

Being able to count on a partner who doesn’t cheat on you and protects you is not easy.

This is why it is crucial to choose the right one, to keep your company’s productivity safe and, consequently, your turnover and reputation.

It is no coincidence that the most important link in a Supply Chain is shipments because they are crucial both for the supply of materials and for the delivery of the finished product.

If even one delivery misses or arrives late, it’s a concern. And it is always the company the one who is responsible for it, the supplier doesn’t care (like Honeywell).

For this reason, you must aim for the maximum and choose the best partner, capable of making your production chain even faster than today, while at the same time protecting you from possible delays.

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