Case Study | Johnson Controls
About Johnson Controls
Johnson Controls (JCI) is a world leader in creating safe, healthy, and sustainable spaces with the world’s largest portfolio of building technology, software, and services. Johnson Controls delivers the blueprint of the future for healthcare, schools, data centers, airports, stadiums, manufacturing, and beyond.
The Challenge: Manual Task Overload and Siloed Data
With over 5,000 global suppliers, Johnson Controls understood that efficient supplier collaboration was critical to manufacturing excellence. Yet, their massive scale presented a challenge: how to improve supplier performance and visibility without overwhelming internal teams.
Before their strategic shift, JCI’s supply chain teams were caught in a cycle of manual, time-consuming work. Buyers were spending excessive time chasing supplier updates, manually entering supplier commit dates into ERP systems, and struggling with outdated, fragmented data dispersed across spreadsheets. On the other side, suppliers lacked forecast visibility to plan appropriately.
This lack of centralized visibility and hindered collaboration impacted the business. Shortages driven by inaccurate or late supplier information led to production delays and schedule changes. Ultimately leading to customer dissatisfaction.
Scaling supplier collaboration across their global network presented several common roadblocks that the Johnson Controls team had to navigate:
- Supplier diversity: Suppliers vary widely in size, maturity, systems, and processes, making it hard to apply a one-size-fits-all solution.
- Resource constraints: Scaling requires significant time and effort from internal teams to support and train suppliers, which isn’t sustainable long-term.
- Change management resistance: Suppliers were often too slow to adopt new tools or processes without clear incentives or support.
- Lack of centralized governance: Without a unified strategy or ownership, improvement efforts were fragmented and difficult.
The Solution: Strategic Partnership and Digital Integration
Recognizing that collaboration could not be a one-size-fits-all effort, Johnson Controls developed a vision for collaboration at scale. This required a unified strategy, top-down leadership support (including the Chief Procurement Officer and VP of Materials), and a digitally integrated platform.
JCI partnered with LeanDNA to implement APEX, a centralized supply planning platform with a write-back solution. This strategic shift transformed their operations by:
- Automating Commit Dates: Eliminating the manual step of having buyers update the ERP. The APEX write-back capability automatically synced supplier-provided commit dates directly into JCI’s ERP systems, increasing data accuracy and saving time.
- Centralizing Visibility: Connecting over 700 strategic suppliers across 36 global sites, providing materials, procurement, and manufacturing teams with real-time, accurate insights into supplier commit percentages and Clear-to-Build (CTB) status.
- Standardizing Processes: Implementing clear roles and standardized engagement models for suppliers, buyers, and category managers to ensure consistent, compliant performance tracking across regions.
The implementation included a gradual, phased rollout, starting with SAP sites, followed by a meticulous process to address feedback and ensure internal and external adoption.
What it Takes to Be Successful: Navigating Change Management
Johnson Controls identified that successful collaboration at scale required more than just technology; it demanded a holistic approach encompassing tools, standardized processes, and a fundamental cultural shift. These elements enabled them to overcome the scaling roadblocks:
Tools & Technology
To address data fragmentation and manual overhead, Johnson Controls prioritized three key technological components. First, they implemented a centralized analytics platform like APEX by LeanDNA to provide real-time visibility into supplier performance and inventory health, effectively moving teams away from reliance on spreadsheets. Second, the development of integrated data systems was crucial, using the write-back capability to connect JCI's various ERPs, supplier portals, and planning tools, which eliminated manual data entry and ensured accuracy. Finally, automation tools were leveraged to handle repetitive administrative tasks such as shortage tracking, PO follow-ups, and commit date updates.
Processes
Standardization was the bedrock of successful scaling. Johnson Controls implemented standardized supplier engagement models to ensure that onboarding, training, and performance tracking were uniform and clear across all global suppliers. This was supported by establishing clear governance and escalation paths and structures, allowing teams to efficiently manage exceptions and drive accountability throughout the organization.
Cultural Shifts
Beyond systems and processes, lasting success required a change in mindset. JCI fostered a strategic partnership approach, shifting the relationship with suppliers from purely transactional to a more strategic one that emphasizes partnership and shared goals. Internally, there was an empowerment of frontline teams, giving them access to real-time data and the authority to make faster, more effective decisions. This was all underpinned by a commitment to transparency and collaboration, both internally and externally, which built trust and drove alignment toward common objectives.
Quantifiable Results: Reclaiming Time and Driving Performance
The focus on strategic alignment and digital integration delivered measurable results for Johnson Controls, cementing the transformation into a true success story.
Key metrics highlight the operational impact:
- 700,000+ Manual ERP Updates Eliminated Annually, representing a massive gain in efficiency.
- 13 Hours of Staff Time Saved Per Site, Weekly on average, boosting productivity significantly.
- Supplier Added Commit % improved by 20%, rising from 55% to 75%.
- Clear-to-Build (CTB) % improved by 20%, rising from 53% to 73%.
- 27% Reduction in Shortages projected between 2023 and 2025, showing a direct impact on production stability.
The write-back functionality alone eliminated three-quarters of a million manual data entries per year, freeing up material planners to move from reactive follow-up to proactive risk mitigation and strategic collaboration.
"If I could offer one piece of advice on scaling collaboration, it would be this: success demands alignment before execution. You must secure top-down leadership support and ensure that procurement, materials, and manufacturing are all aligned on the common KPIs and governance processes. Don't try to roll out everything at once, start small, gather your lessons learned, and then scale strategically to drive sustainable outcomes." — Nicole Ots, Director of LeanDNA, Johnson Controls
