Johnson Controls International plc · NYSE:JCI
Johnson Controls International — Supplier Readiness Summit (September 2011)
37 slides from Johnson Controls International's conference presentation, September 2011
Slide 1: Supplier Readiness Summit
SAP Better information Greater visibility Supplier Readiness Change creates growth Summit September, 2011 1 Johnson Controls Confidential
Slide 2: Your Presenters
Your Presenters … Margaret Schoessow Micah Mahnke Americas Procurement Business Process Lead Manager - Direct Materials Procure to Pay (PTP) Team Rajesh Bhat Mike Machi IT Lead Coordinator for Supplier Procure to Pay (PTP) Team SAP Project 2 Johnson Controls
Slide 3: Rules of Engagement
Rules of Engagement This call will be recorded and you should have already received a copy of today’s presentation Please feel free to ask questions as we walk through the presentation But keep in mind that everyone will be on listen only mode To raise a question please type it into Sametime
Slide 4: Session Objectives
Session Objectives The goal of the Supplier Summit is to provide Suppliers with: Greater clarity and awareness around our February 6th, 2012 SAP implementation Details regarding “what’s changing?” and how those changes will affect you An additional venue to ask questions in light of these chan
Slide 5: Agenda
Agenda Introduction 00:05 Objective Overview of the Supplier Readiness Effort 00:05 Key milestones and high level change impacts Change Impacts 00:40 Details around the main impacts expected Recap 00:05 Next Steps Wrap Up 00:10 Questions 5 Johnson Controls
Slide 6: Overall Release Schedule for Power Solutions
Overall Release Schedule for Power Solutions Pilot - Release 2.1 February 2012 Geneva Oconee Florence, KY Red Oak US HQ San Antonio Release 2.2 May 2012 Release 2.3 August 2012 Release 2.4 November 2012 Release 2.4.1 January 2013 Toledo Florence SC Middletown St Joe Fort Wayne Portland St Joe Winsto
Slide 7: Timeline for Release 2.1 Shows What Locations Are in Scope
Timeline for Release 2.1 Shows What Locations Are in Scope & Amount of Time Remaining for Supplier Readiness Go- Realization Live Final Prep & Go- Development Testing Sustain Live Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Florence KY Geneva IL Milwaukee WI Oconee S
Slide 8: Direct Suppliers – High Level Impacts
Direct Suppliers – High Level Impacts CHANGE IMPACT NEXT STEPS 1. Interim State JCI suppliers will have to view JCI as two Discuss implications around this change different customers (Legacy System & SAP) Provide how-to documentation Suppliers will receive purchasing documents Training fro
Slide 9: Direct Suppliers – High Level Impacts Cont.
Direct Suppliers – High Level Impacts Cont. CHANGE IMPACT NEXT STEPS 9. Communication of POs & cXML will be the new form of electronic Discuss implications around this change. To be Delivery Schedules communication to suppliers able to receive, suppliers will first need to New look and feel co
Slide 10: Agenda
Agenda Introduction 00:05 Objective Overview of the Supplier Readiness Effort 00:05 Key milestones and high level change impacts Change Impacts 00:40 Details around the main impacts expected Recap 00:05 Next Steps Wrap Up 00:10 Questions 10 Johnson Controls
Slide 11: 1. Interim State
1. Interim State Key Takeaway: Suppliers will have to view JCI as two separate customers during Interim State Suppliers will have to view JCI as two different customers (Legacy Direct suppliers will be System & SAP) involved the longest JCI will also require that suppliers begin using the SAP
Slide 12: Legacy Purchase Order vs. SAP Purchase Order
Legacy Purchase Order vs. SAP Purchase Order Legacy SAP 12 Johnson Controls
Slide 13: 2. Units of Measurement (UoM)
2. Units of Measurement (UoM) Key Takeaway: UoM such as height, length, and volume will be converted to metric system Suppliers will need to convert units of measurement to be able to Suppliers may want to reconcile with their internal systems consider purchasing conversion devices, if they don’
Slide 14: Example of UoM
Example of UoM Purchasing Key Key Key Key Mandatory Legacy Material Legacy Unit of Source System Number Measure SAP Unit of Measure Price Conversion Factor * * EA EA 1 * * FT M 3.2808399 * * G KG 1000 * * IN M 39.3700787 * * KG KG 1 * * L L 1 * * LB KG 2.20462442 * * M M 1 * * PC EA 1 * * PZ EA 1 *
Slide 15: 3. Delivery Schedules
3. Delivery Schedules Key Takeaway: Suppliers will continue to receive delivery schedules N/A START Instead of receiving discrete agreements, suppliers will now receive The numbers will delivery schedules (most of the time). The new delivery schedule will remain the same for look and feel like
Slide 16: Example of Delivery Schedule
Example of Delivery Schedule Key points to be aware of with Delivery Schedules: Delivery Schedule number will remain the same Will show multiple lines When printed will show price, but if sent via EDI no price will be shown. 16 Johnson Controls
Slide 17: 4. Supply Network Collaboration (SNC) Tool
4. Supply Network Collaboration (SNC) Tool Key Takeaway: JCI will begin to leverage the SNC tool for POs, ASNs, and forecasts JCI suppliers will begin to leverage SNC for invoices, POs, ASNs, and The timing of delivery schedules This will allow suppliers to interact with the tool for everyone’s
Slide 18: 5. Invoices
5. Invoices Key Takeaway: PO numbers will be required on invoices Once SAP is implemented, JCI will require that suppliers adhere to new New process will require process where PO number is included on invoice discipline POs will also be generated in a 10 digit SAP format and suppliers will STA
Slide 19: Lead Suppliers Only - Screen Shot of Inbound & Outbound Invoice Format
Lead Suppliers Only - Screen Shot of Inbound & Outbound Invoice Format JCI Receipts JCI Shipments 19 Johnson Controls
Slide 20: 6. Material Numbers
6. Material Numbers Key Takeaway: JCI will be using randomly generated SAP material part numbers that will come in a 10 digit numeric format JCI will start to randomly assign numbers to material parts Material numbers will be generated in the 10 digit SAP numeric format Part numbers will be ST
Slide 21: 7. Part Numbers on Shipping Labels
7. Part Numbers on Shipping Labels Key Takeaway: Suppliers will need to add SAP PO number to their shipping labels Shipping labels will have to include SAP & Legacy System part numbers No strict requirements around where the SAP numbers go on the label but both part numbers START must be include
Slide 22: 8. DUNS Number
8. DUNS Number Key Takeaway: Suppliers will have to submit or obtain a DUNS number JCI will start requiring that suppliers have a DUNS numbers There is no cost to If suppliers do not have a DUNS number, should start process to obtain obtain a DUNS number one and then it submit to JCI once comp
Slide 23: How to Obtain A DUNS Number
How to Obtain A DUNS Number 2. Instructions Go to: https://smallbusiness.dnb.com/ Click on Get a D-U-N-S (1) Click on Or opt for a free DUNS number which you will receive in 30 days (2) Follow subsequent steps or call their help desk at 1-866-834-4701 23 Johnson Controls
Slide 24: 9. Communication of POs & Delivery Schedules
9. Communication of POs & Delivery Schedules Key Takeaway: Suppliers will receive POs and delivery schedules on the new cXML or EDI format Suppliers will be receiving POs and delivery schedules on the new cXML This means that if you or EDI format are capable of receiving However, this will onl
Slide 25: 10. ASN Ship-To Procedure
10. ASN Ship-To Procedure Key Takeaway: Suppliers should only select one ASN per ship-to location Suppliers should only use one ASN per ship-to location System is set up to only handle one per ship-to location START This will only be relevant to suppliers on cXML, SNC, or EDI Suppliers shoul
Slide 26: 11. Tendering Through TMC
11. Tendering Through TMC Key Takeaway: Tendering loads through TMC will require additional information Case for Change – This will bring clarity to JCI by enabling: Will require discipline 1. More accurate freight evaluations; from suppliers 2. More robust abilities to monitor cycle times; PT
Slide 27: High Level Process Flow with TMC
High Level Process Flow with TMC JCI SAP/SI TMC Vendors New/updated POs Purchase orders and and Delivery Purchase delivery schedules Schedules received Orders entered into system, or updated Vendor logs into Delivery site, is presented with list of open Schedules POs/delivery schedules Vendor select
Slide 28: Example of Additional Fields: Entering PO Numbers
Example of Additional Fields: Entering PO Numbers Step 1: Enter the shipment’s unique load identifier. JCI expects this will ultimately be the PO number Step 2: Select Shipment Locations using the Add Origins button. *Note* TMC can default your origin to your specific location Step 3: Select t
Slide 29: 12. EDI Vendor Community
12. EDI Vendor Community Key Takeaway: Lead suppliers will begin to receive 862 EDI’s (delivery schedules) Suppliers will start to receive 862 EDI’s – or delivery schedules – with a JCI will provide new look and feel communications START N/A EDI community will continue to receive 855 EDI fro
Slide 30: New JCI SAP Shipping Schedule
New JCI SAP Shipping Schedule “As Is” State “To Be” State Current Legacy System New SAP Shipping Schedule 850 PO 850 PO Or JCI 855 ACK 862 Shipping Schedule Legacy Suppliers JCI Suppliers System 856 ASN 856 ASN 30 Johnson Controls
Slide 31: 13. Bushings
13. Bushings Key Takeaway: Suppliers using lead from JCI to assemble bushings will have to provide receipts so JCI can track inventory movements Lead business will need receipts of lead used to record proper inventory Send letter to bushing movements manufacturers so they are aware that Lead J
Slide 32: Example of a Bushing Receipt
Example of a Bushing Receipt Above is an example of what the inbound format should look like for lead bushing suppliers. The key is the column header format (highlighted in red) Outbound format, however, will be a different look and feel 32 Johnson Controls
Slide 33: 14. New Lead Design
14. New Lead Design Key Takeaway: New lead design will require some upfront work from suppliers but will ultimately minimize impact on them JCI will be implementing an entirely new lead design New design will actually minimize impact to US suppliers may have to work with plants on a staggered
Slide 34: Agenda
Agenda Introduction 00:05 Objective Overview of the Supplier Readiness Effort 00:05 Key milestones and high level change impacts Change Impacts 00:40 Details around the main impacts expected Recap 00:05 Next Steps Wrap Up 00:10 Questions 34 Johnson Controls
Slide 35: Next Steps
Next Steps Review the slides we discussed today to ensure that you understand: 1. The changes that are coming; 2. What it means for you; 3. And any action you need to take. For additional questions please send an email to SAP-Procurement@jci.com Stay tuned for follow up communications regardin
Slide 36: Agenda
Agenda Introduction 00:05 Objective Overview of the Supplier Readiness Effort 00:05 Key milestones and high level change impacts Change Impacts 00:40 Details around the main impacts expected Recap 00:05 Next Steps Wrap Up 00:10 Questions 36 Johnson Controls
Slide 37: Questions?
Questions? 37 Johnson Controls
Johnson Controls International — Supplier Readiness Summit (September 2011) on 6ix