Johnson Controls: Customer Reference Video

Johnson Controls is a global leader in automotive experience, building efficiency, and power solutions. Discover how the organization is using SAP Supplier Relationship Manager (SAP SRM) to communicate electronically with suppliers and significantly reduce costs for procurement processes.

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    • Johnson Controls is a $21 billion supplier. We have predominant market share in interior products – seating, instrument panels, dashboards, overhead visors and supply most of the OEMs in the automotive market. We had about 65 different chart of accounts that we were trying to manage the business with in Europe, not as much in North America. So in 2003 we made a strategic decision to go with SAP to communize all financials and purchasing systems throughout the world of JCI. That was the big reason. The second reason was with the Sarbanes-Oxley, needing to get better controls around our systems, processes, and data. That was the secondary reason we chose SAP. With SRM we've implemented online requisitioning for current plants that we've taken live. We've also, for our electronics division in Europe, we’ve implemented the SRM bidding engine. So just in the last two weeks, in fact, we've used the bidding engine of SRM to qualify about 1,500 suppliers, about 10,000 components across Europe, through the electronic quest-quote process. So basically we send out the quote through the bidding engine, and they validate the cost, and so on. And then we run our supplier selection process through that. The advantage for us is we can communicate directly, electronically, with the suppliers. We can very quickly confirm pricing through the quoting and bidding process. And the estimated savings to the business in running this through SRM was about $10 million yearover year versus the manual way of sending paper quotes to the suppliers and managing the administration of that back and forth. Through the implementation of our supplier relationship management solution, and the process we're going through, the expected benefit there is around $10 million per year. The expected return on investment year over year is around $20 million a year. And that's through the centralization of finance in Europe and the implementation of a single instance of SAP globally for Johnson Controls.
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Company Profile

  • NameJohnson Controls, Inc.
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