Main export issue

With the economic crisis, tariffs and trade influencing the global market, much of the
conversation centered on the trade of goods and services. However, exporters must
consider the threats that may exist when seeking to leverage the trade potential of
international customers and clients. Moving goods throughout international boundaries
requires different rules, corporate conditions and organizational cultures than businesses
whose marketplace is primarily domestic. The problems and the subsequent measures used
by companies to export vary widely, in most instances, from which are used in regional
economy. This put Honeywell in the bracket of company that would face challenges as it
exports internationally.

Legal Norms

Whenever it comes to potential problems with the export of goods, the legal systems are
relevant. It also includes the protection framework of a country in which you choose to trade.
You should remain informed about government regulations on the safety of products,
particularly when exporting food. Many policies can slow the export-import process and raise
issues for either you or the regional distributor. Some economies have a complicated red
tape structure that involves a number of paperwork and certificates. You may need to obtain
such authorizations whenever you export to such countries.

Honeywell’s future operating results may be negatively impacted by variations in the

effective tax rate as a due to a change within income mix in countries with varying statutory
tax rates, changes in the tax legislation, guidelines and judicial decisions (or changes in
perception), possible taxes of digital services, adjustments in widely accepted accounting
standards, changes in the valuation of delayed tax assets and liabilities, modifications in the
volume of profits indefinitely reinvested overseas, the outcomes of audits and analyses of
previously filed tax returns and ongoing evaluations of our tax risks and numerous other
government compliance measures. Implementation of new laws or regulations, including
more legislative developments emanating from U.S. tax reform legislation, as well as multi-
jurisdictional changes introduced in response to policy recommendations presented by the
Organization for Economic Co-operation and Development (OECD), would raise tax
insecurity and affect our income tax policy (Honeywell, HONEYWELL 2019 ANNUAL
REPORT, 2019).

Revenues and margins of every one of our divisions are significantly influenced by
government restrictions, including safety, efficiency and product certification
regulations. Within Honeywell Building Technology and Protection and Production Solutions,
the need for and cost of delivering goods, services and solutions could be influenced by fire,
safety, health care, environmental and energy efficiency requirements and regulations.

Fluctuating exchange rate or cost

At the very same time as financial markets encountered an uncontrollable shock, core
products experienced rapid price rises. Although the price of imported goods could be more
stable, there are adverse exchange rate uncertainties which could result in a loss of profits
or revenue. Normally, while exports from a country with more stable companies are likely to
have much more secure or predictable economic systems, there will still be a high degree of
risk to consider. Manufacturers must take into consideration the dynamics of the currency
exchange rate, which can be volatile on the basis of financial and trade shifts. Suddenly, a
1% change in foreign exchange markets may leave you short. In previous years, such
protests were rare. Nowadays, though, the planet is full of confusion. Nations breaking away
from political unions, unpredictable election results, and epidemics are now happening on a
daily basis (Thomas, 2020).

Honeywell has the potential of facing such an issue considering the vast export product it
engages in. the company may have different exchange rate for different product be it even in
the same country, most Asian countries their currency is adversely affected by that of the
U.S or Europe market or even the China influence.

Quality/technical control

Several researchers have suggested that local product requirements, consumer

expectations and purchase patterns may be undesirable for international sales and may
involve adaptation. In most research, effective companies are adapting their goods to global
markets.

Solution model

Export strategies model

As far as industrial development is concerned, the last 40 or so years were being driven by
what has become known as export-led growth or export promotional strategy for
industrialisation. Export-led growth occurs when a company or sector seeks economic
development through foreign trade. A secure availability of raw materials and good and easy
navigation are also important to ensure the success of an export-oriented strategy. In our
activities, the main raw materials are often readily accessible (Hong, 2012). While we often
encounter uncertainty in the supply of raw materials, we encountered no major problems in
2019 with the purchasing of critical raw materials or resources. For the quantity of our raw
materials, we do not rely on one specific distributor. We compensate for the rise in raw
material prices by means of model or long-term supply deals, increased prices and hedging
activities where possible. At present, we don't really expect that a shortfall of raw materials
would have any negative material effects during 2020. Through implementation of the
export-led strategy they were able to engage in ways that helps them maintain fewer
restrictions and emphasize on production of export. There constant innovation to meet
international market makes them not to rely on past accomplishment to see them past future
success.

Logistic and globalization

Rising shortage

Labor problems and shortages just add to the challenges that DCs need to navigate. The
exponential rise of e-commerce is currently generating demand for more than 400,000
fulfillment center jobs in 2018–19, which is unavoidable in the already labor-stricken industry.
Skills shortages have several causes, but by far the most prominent is the aging DC
population, although millennials show less enthusiasm in T&L jobs. DC staff are also working
part-time or remain in DCs for shorter periods of time due to competition, thereby raising the
cost of training. In addition to evolving demographics of the population and growing labor
costs, industrial growth outperforms the labor force by a ratio of six to one (Ewell, 2020).

Time versatility in delivery

Every importing and exporting company aims to keep optimum production and decreased
costs. Both factors are directly related to the form of transport, the cost of fuel, etc. Although
businesses have begun to think more about ultimate mode of transport, several other
problems are having their noses up and demanding urgent attention. With the company
handling so much time delivery is a concern to them. As more and more of the customers
expecting ‘now delivery’ its had not to experience such problems in export of their product.

Complexity in supply

The complexity of the supply chain keeps growing in a variety of ways. Companies
outsource further parts of their business to internationally dispersed supplier networks. The
production process is becoming infinitely more complicated than a straight assembly line.
Today, manufacturers need to handle several product categories, each of which is
manufactured from separate suppliers. And those parts which involve the sub-assembly of
other suppliers. In addition to this as well, producers need to handle logistics, to recognize
where and when goods have to meet global demand. The vast number of global areas in
which goods are currently sold continues to grow. This increase has resulted in a growing
amount of regulations which must now also be met with, particularly if you produce life
science or aerospace products.

New data

As Honeywell continues to grow internationally, tactical decisions must be taken regardless

of if all the right data is given. Unfortunately, if effective communication and coordination
mechanisms are not introduced, the lack of information directly correlates with an increase in
risk. If companies do not have the right knowledge to make informed choices, there is a
greater degree of danger that an adverse result may occur.

As a result of globalisation, there seems to be a higher risk that businesses will be subjected
to and affected by many more adverse events, such as natural disasters, political and
financial uncertainty, supply disturbances, economic uncertainty and more. If they trade in
more countries with more investors, the chances are that you'll be more likely to encounter
several of these challenges (Honeywell, Delivering on Transportation & Logistics Operations,
2014).

Persistent barrier policy

The development of value chains throughout the logistics sector has led to a level of regional
and international convergence of trade logistics sectors. However, in several countries,
major policy barriers still exist. Moreover, the reality that logistics is a group of support
services instead of a single, well-defined, observable sector makes it hard, at the policy
level, to undertake the requisite steps to further integrate. These guidelines can end up
being delayed at a certain stage, and each authority concerned requires to generate unique
licenses as well as permissions to improve the process steady. The issue would be that the
political conditions continue to shift drastically. Up to this point, there seems to be no
consistent, and the delivery mechanisms have also been held up by imbibing whatever the
system provides.

Custom and culture

Abroad, people are doing trade & life differently. Mostly in West, we anticipate
communications to be prompt and timely. In certain nations, however, meeting times are
really a standard. Instead of a fast visit to the plant, 2-hour meals and late-night social
engagements are part of the process. The duty of the management, including the employees
of the company, is the greatest. Valuable workers at all levels – vendors, management,
different levels of leadership – need, above all, a positive attitude and stress-free job.

Solution to mitigate the problems

Innovation through automation

Process enhancement is not just about identifying where procedures could be managed
efficiently. For T&L activities, in general, it is crucial to understand how automation could
minimize the human effort and interaction needed, and thus to reduce the amount of 'man
hours' required to undertake processes between start to finish. Not shockingly, automation is
usually delivered by the addition of technology. Speeding up extremely repetitive workflow
procedures by only a few seconds and reducing human error opportunities can have a huge
effect on overall operating performance and costs. T&L activities have to be as flexible as
possible to leverage on consumer demands for Saturday delivery services, in order to offer
consumers more power and convenience over their deliveries. T&L activities have some
appreciation of the need to rejuvenate their procedures. This year, service quality was listed
as the number one field that needs improvement, and 44 percent of businesses agree that
the most efficient way to do this is to evaluate existing workflows and technologies (process
re-engineering) (Honeywell, 2014).

Custom, automated reports

Standard reports by Crystal Reports provide such a straightforward description of the

outcomes, such as fines and the total quantity of resources transported by each mode. MS
Access or some other reports from third parties could be used to generate status updates.
Output from Crystal Reports could be exported to a number of other media, including MS-
EXCEL or Lotus spreadsheets, Word papers, other text formats, any other ODBC compliant
database, and HTML formats (Solutions, 2013).

Labour management

As there are many different stakeholders, it is difficult to sustain transport services without a
task assignment and monitoring tool. Labor management systems have arisen to reduce
human error, minimize paperwork and improve overall performance. Mobile apps may also
minimize the number of tiresome manual acts, for example by allowing the sharing of
documents or by offering a log for drivers and warehouse staff. Instead of physically
performing a task, individuals have an automatic method to do it for them.
References
Ewell, B. J. (2020, February 20). What are the Common Problems Facing Today’s
Distribution Center? Retrieved from honeywell:
https://sps.honeywell.com/us/en/support/blog/productivity/what-are-the-common-
problems-facing-todays-distribution-center
Honeywell. (2014). Delivering on Transportation & Logistics Operations. Fort Mill,: Honeywell
Scanning & Mobility.
Honeywell. (2019). HONEYWELL 2019 ANNUAL REPORT. Charlotte, NC 28202: Honeywell
International Inc.
Hong, S. (2012). New Challenges to the Export Oriented Growth Model. Moving Toward a
New Development Model for East AsiaThe Role of Domestic Policy and Regional
Cooperation, 27-54.
Solutions, H. P. (2013). Process Solutions. Houston: Honeywell International Inc.
Thomas, T. (2020, June 29). 6 Risks Of Exporting Manufactured Goods — And How To
Avoid Them. Retrieved from thomasnet: https://blog.thomasnet.com/risks-in-
exporting-manufactured-goods-and-how-to-avoid-them