Case Study: JCI Client Office Furniture Management ProgramStrategic Sourcing: Furniture Procurement Moratorium

Tenant Improvement Construction

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Structural Renovation

Ground Up Construction

The Brief• Johnson Controls Client, as part

of an overall reduced spending initiative, wanted to develop a program to utilize existing furniture inventories and reduce the acquisition of furniture by

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5 YR Actual Furniture Spend

$31M

Critical Environments

Consulting

the acquisition of furniture by the corporation.

• Johnson Controls partnered with client to research, develop, and implement a new process for requesting, managing, tracking and procuring office

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5 YR Estimated Value48M$

SolutionChallenges

Critical Environments

Projects

Energy & Sustainability

ConsultingBenefits

tracking and procuring, office furniture for simple MAC requests to large 300 person projects

5 YR Cost Savings$17MM

• Create a network of Divisional Furniture Coordinators. Align all business units with list of coordinators to maximize visibility of the furniture requirements and gain the improved efficiency of the office furniture inventory use.

g• Utilization and communication of existing

furniture inventories company wide. • Make the best use of the current

furniture inventory at each division to meet the on going requirements of the corporation relating to office furniture

Consulting

Mechanical/ Electrical Projects

• Johnson Controls established furniture dealer network and process for re-furbished furniture program.

• Established set process for furniture requests.

• Centralized control for increased• Implement policies and procedures for

furniture procurement. Utilization of existing product across divisions is priority.

• Develop network of third party vendors and program for sourcing pre-owned/re-

p guse.

• Reduce overall furniture spending.• Exploration and use of pre-owned

product. • Maintain, forecast, and track pipeline

projects and requirements

Site Infrastructure Projects

Space Planning & MAC Services

Centralized control for increased efficiencies, accountability, and purchasing leverage.

• Shared furniture inventories across corporate divisions provided reduced spending and improved asset management.

Johnson Controls … creating a more comfortable, safe and sustainable world

manufactured furniture.• Create standard layouts with basic “kit

of parts” for product and price comparison.

projects and requirements.

Strategic Sourcing

MAC Servicesmanagement.• Improved overall tracking and reporting

for division wide projects, schedules, and budgets.

• Sustainability and Leeds Certification credits for use of recycled product.