Johnson Controls advances JIT sequencing with new ERP software

$26.5bn global automotive supplier Johnson Controls is rolling out JIT (just in time) Sequencing software jointly developed with ERP firm QAD, and launched on general release last month. Johnson Controls says it’s deploying the technology at 50 sites across Europe as a key component of its current JIT sequencing production initiative for its vehicle seating and interior systems lines. The firm expects the system to drive better inventory velocity and supply chain collaboration, while also improving responsiveness and cutting the cost of operations. “Low total cost of ownership and extensive automotive industry-specific functionality prompted Johnson Controls to standardise core ERP functions on QAD Mfg/Pro, so QAD was a logical partner for development of software capabilities for JIT production,” says Susan Kampe, vice president and general manager of IT, Johnson Controls Automotive Group. She makes the point that automotive OEMs face ever-increasing consumer demand for customisation, which in turn puts the pressure on suppliers to respond quickly but without carrying expensive safety stocks. Sequenced production in line with vehicles’ progress on the OEM assembly line is the industry’s preferred route, and Johnson Controls believes that QAD’s integrated JIT sequencing engine is the way to go. Now, as vehicles travel down the OEMs’ assembly lines, demand signals are triggered and the JIT Sequencing module processes message data including sequence number, vehicle ID and product configuration to Johnson Controls’ planning and execution systems. It integrates OEM demand with the company’s suppliers’ schedules and shows stock activity in near real time. That in turn also helps Johnson Controls anticipate material shortages and notifies suppliers of demand changes, to align inventory more closely with demand, reduce expediting costs and prevent overstocking.