Johnson Controls, Inc., the global market leader in automotive systems and facility management and control, is a major supplier to the automotive market. Fiscal sales totaled $22.6 billion in 2003, up 13% from 2002. Although the trend among most corporations is supplier reduction and consolidation, Johnson Controls relies heavily on the contributions of its minority suppliers to meet sales objectives, enhance profitability, and deliver quality products to its customers.

That reliance is evidenced by the fact that Johnson Controls supplier diversity purchases have grown from $2 million in 1993 to more than 1.02 billion in 2002.

The company employs several innovative strategies in its minority supplier program including establishing best practices to:

•Build supplier diversity program infrastructure and obtain executive commitment
•Establish accountability processes
•Enhance purchasing decision-maker involvement through recognition processes
•Strengthen supplier diversity’s linkage to sales and marketing
•Develop diverse supplier recruiting and referral processes
•Maintain diverse purchases during supplier base consolidation
•Develop strategic alliances
•Build diverse supplier capacity through mentoring relationships
•Develop joint ventures
•Train diverse supplier executives

Johnson Controls diverse suppliers include companies owned by minorities (e.g., Asian, Asian-Indian, Black, Hispanic, and Native American), women, and thoses designated by government agencies as small businesses or disadvantaged businesses. It currently has 1,100 diverse suppliers across the country.

"With minority-owned businesses growing four times faster than the national average of all U.S. firms, we firmly believe a strategy-based supplier diversity program is no longer an option—it is a necessity," says Reginald Layton, Director of Diversity Business Development at Johnson Controls.

Johnson’s Second Tier program requires its largest suppliers (minority as well as non-minority) to establish minority supplier development programs.

Johnson Controls was recently recognized by the National Minority Supplier Development Council (NMSDC) with the Corporation of the Year Award. NMSDC certifies minority suppliers so corporations like Johnson Controls don’t have to. Currently, the NMSDC Regional Councils certify and match more than 15,000 minority-owned businesses with member corporations that want to purchase goods and services.

NMSDC estimates that about 4% of total corporate spending, roughly $70 billion, will be with minority suppliers in 2003.

For more information about Johnson Controls’ minority supplier program, contact Reginald Layton, Director of Diversity Business Development at (414) 524-3611.

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