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Johnson Controls Launches Electronic Purchasing Program

10 November 2000

Johnson Controls Launches Electronic Purchasing Program; Company Sees Efficiency, Quality Gains From Online Supply Chain

    MILWAUKEE, Nov. 10 Johnson Controls, Inc. has
launched a new electronic procurement system for purchasing everything from
office supplies to computers throughout its Controls business offices and
plants.
    The system, called eCounterline(TM), is expected to eliminate 500,000
manual transactions annually while speeding up purchasing and approval
processes.  The eCounterline system marks the first step in what will be a
complete electronic supply chain at Johnson Controls.  The company anticipates
that all goods for its Controls business will be purchased online by the end
of 2001.
    "This system is a perfect example of how we're using Web-based technology
to improve productivity and reduce costs," said Brian Stark, president of the
Controls business at Johnson Controls.  "We're embracing e-business
initiatives to better serve our customers through enhancements in
communications, collaboration and customization."
    The new online process is a dramatic departure from traditional
procurement methods.  Instead of paging through paper catalogs, filling out
requisition forms and placing orders via telephone or fax, empowered Controls
Group employees select needed items from electronic catalogs maintained by
more than 100 key suppliers.  The orders are placed instantly via electronic
data interchange.
    "This greatly simplifies the supply chain because data enters the system
only once.  The entire transaction is electronic end-to-end," said John
Pierson, Johnson Controls director of procurement.  "Procurement becomes an
instantaneous 24 hour-a-day, seven-day-a-week operation.  There's nothing
stopping it."
    As goods are pulled through the supply chain on as-needed basis, Johnson
Controls key suppliers more easily manage inventories.  Exclusive contracts
give the suppliers preferred access to the company's purchasing dollars.
Commerce One, a leader in global e-commerce solutions for business, provided
the Johnson Controls system's user interface, catalogs search engine, shopping
tool and requisition process capabilities.