Johnson Controls Manages Supply Chain
4 August 1998
Johnson Controls Manages Supply Chain by Creating Private Web Site to Track and Enhance Performance
Interactive web site, a 'first' for industry,
supports company's product introduction process
PLYMOUTH, Mich., Aug. 4 -- Automotive interior company
Johnson Controls has launched a private web site on the Internet
to manage seating programs and enhance communication with its key (tier-one)
suppliers. The web site enables the suppliers to furnish regular updates as
they create materials or components for integration into interior systems
under development at Johnson Controls. Launched earlier this year, the web
site is an industry "first" among suppliers to original equipment
manufacturers (OEMs) and is modeled after Advanced Product Quality Planning
(APQP) systems in use by General Motors, Ford and Chrysler.
Johnson Controls is a leading, global supplier of automotive interior
systems, including vehicle seating, headliners, instrument panels,
electronics, door panels, and overhead and floor consoles. The company has
approximately 750 direct suppliers, and a worldwide supplier network --
including tier-two and tier-three suppliers -- comprised of more than 5,000
companies.
"We're proud to be an industry leader in effective supplier management,"
said Larry Alles, vice president of worldwide purchasing for the Automotive
Systems Group of Johnson Controls. "It's essential for sustaining our success
and growth."
Tactical purchasing staff and launch team members at Johnson Controls have
direct access to the web site so they can quickly check on the status of
various programs, identify and solve possible problems, and generate progress
reports.
"In order to meet the quality, timing and cost requirements of our
customers, we rely heavily on our key suppliers," said Alles. "Our web-based
support system for Advanced Product Quality Planning will enable us to track
and significantly enhance supplier and Johnson Controls' program performance."
For each assigned task in Johnson Controls' Product Introduction Process
(PIP), suppliers are required to enter vital information at the web site --
including the status of the task, its completion date and comments. The data
is managed and reported in several formats, depending on user requirements.
"To bring any new product to market efficiently requires tremendous
communication and coordination," said Mike Holzhauer, director of supplier
development. "Using an interactive web site is an excellent way to conserve
time, minimize open issues, and communicate among team members, including our
key suppliers that help us to meet our customers' expectations."
The web site was launched in January 1998 in support of future seating
programs in North America. Currently, it's being piloted in Europe, and
eventually will be used among Johnson Controls' key suppliers worldwide.
Johnson Controls, Inc., with headquarters in Milwaukee, Wisconsin, USA, is
a global market leader in automotive systems and building controls. Founded in
1885, Johnson Controls had sales of US$11.1 billion in 1997 and operates in
more than 500 locations around the world. See http://www.johnsoncontrols.com for more
information.
The Plymouth, Michigan-based Automotive Systems Group of Johnson Controls
is one of the world's largest suppliers of vehicle interior systems, and is a
major supplier of batteries. In 1998, the company's worldwide operations will
supply interior products for more than 22 million vehicles. The Automotive
Systems Group employs more than 53,500 people at 208 facilities worldwide and
achieved $8 billion in sales for the 1997 fiscal year.
/CONTACT: Dave Roznowski of Johnson Controls, 734-254-5632/
/Company News On-Call: http://www.prnewswire.com or fax, 800-758-5804,
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/Web site: http://www.johnsoncontrols.com/