Houston-Johnson, Inc. Case Study

System Summary
Key Technologies
Results
Multi-Media

System Summary

Houston-Johnson, Inc. (HJI) is a Louisville-based, ISO 9001-2008 certified, minority-owned company and a WBENC certified women's business enterprise. Founded in 1987, Houston-Johnson provides logistic services to the largest automotive manufacturers and parts suppliers as a Tier 1 or Tier 2 supplier. These services include sequencing, modular assembly, kitting and rework operations with automotive suppliers and consumer products.

Ford's Kentucky Truck Plant on Louisville's East side produces the F-Series Super Dutytrucks as well as the Ford Expedition and Lincoln Navigator large SUVs. The 4.6 million square foot facility is located about 10 minutes from Houston-Johnson's main operations. This close proximity to the plant is crucial for Houston-Johnson as a just-in-time supplier since there is a very short time frame in which to deliver the parts once they are requested.

As the sequence of vehicles is planned for assembly, the vehicle identification numbers (VINs) are broadcasted to all of Ford's suppliers along with information regarding the trim level and parts required for assembly. It is up to the suppliers to decode this information and ship the proper parts to the plant in the correct sequence. If parts arrive out of sequence, or if they are not delivered in the time specified, heavy fines can be levied against the supplier. “We are in a business that we may get a dollar for a part we send out but if it is wrong we pay thousands of dollars because of the impact to the supply chain that is has”, says Daniels.

Key Technologies

Results

Ford receives their components on time and in the right sequence

Customer service has increased dramatically. “We are giving customers the visibility they want and need to make timely decisions”, says Daniels

Decreased labor costs

The WMS has decreased the manpower needed to perform the same processes.

Increased throughput over 50%

“Our growth in our sequencing business from 1 contract to 9 since implementing Exacta is a testament in itself!”, Condrad Daniels

Decreased training costs

HJI is able to have one platform for all of their operators across the sequencing segment which allows for cross training.

Eliminated claims budget

Reduced expenses and improved use of capital funds.

Future

Houston-Johnson routinely wins business against companies that are 10-times their size because of what they can provide in terms of labor cost, accuracy and customer service. The Exacta warehouse management system is allowing Houston-Johnson to pursue customers in any industry vertical, not just automotive.