In the education session at CSCMP 2009 Annual Global Conference, Michael Maltz, director of global manufacturing and logistics for Business Efficiency Division, presented Johnson Controls approach to managing inventory and replenishment in light of the growth attained through acquisitions. The division lacked a consistent methodology and processes for managing build-to-stock, assemble-to-order, and build-to-order products. The division implemented a centralized control over strategic inventory issues, including sales and operations planning, management policies, and development of standards and procedures. The tactical processes, including purchasing and implementation of corporate directives were decentralized and managed by local managers. The division simplified data collection and decision making by using forecasting software that sits on top of multiple enterprise resource planning (ERP) systems. The software helps to integrate sales, marketing, and operational information from all of the component groups and produces forecasts at both the stock keeping unit (SKU) and product-family levels. The software also provides visibility for both domestic and international distribution centers.
Source: "Simplicity beats complexity in managing inventory," CSCMP Supply Chain Quarterly, Quarter 4/2009.