JURY SUPPLY CHAIN MANAGEMENT (BRIEF 1)
Latest Developments in the field of SCM
BY:
Kritika, Mayanka, Muskaan, Nidhi, Priya, Shalini and Snigdha
BRIEF
For this assignment, we have chosen the 1st brief that revolves around latest developments in the field of SCM, we have
created a detailed case study by going through all latest developments for our chosen company.
Introduction to Company
Their Supply Chain
Advancements (Technology, Economy, Society, Environment and Ethics)
Competitor Analysis
Future Scope & Suggestions
Conclusion
INTRODUCTION
INTRODUCTION
JOHNSON & JOHNSON
Johnson & Johnson (J&J) is an American multinational,
pharmaceutical, and medical technologies corporation
headquartered in New Jersey.
It was founded in 1886 by three brothers, Robert Wood
Johnson, James Wood Johnson, and Edward Mead Johnson,
selling ready-to-use sterile surgical dressings.
Today, the company is being honoured for its dedication to
innovation as it ranks in the Top 20 on Fortune’s inaugural
list of America’s Most Innovative Companies.
With its sound supply chain policies, J&J has continued to
grow steadily and has held its place regardless of the
growing competitive environment, for over 100 years now.
J&J credits its endurance and strength to their innovative
business approach and their supply chain strategy.
WHY JOHNSON & JOHNSON ?
Gartner is a world-renowned information technology (IT) research and advisory firm.
They release ‘The Gartner Supply Chain Top 25’ yearly list that recognizes and profiles the top supply chains
around the world. It's essentially a benchmark for companies in the supply chain industry.
Here's a summarized timeline of J & J’s spectacular performance over the past decade in the Gartner Supply
Chain Top 25 List:
Climbing the Ranks: Johnson & Johnson wasn't ranked in the Top 25 before 2017.
2017 Breakthrough: In 2017, they achieved a significant jump, ranking 13th on the Gartner Supply Chain
Top 25 list. This marked them as the only healthcare supply chain on the list at that time.
Top Contender by 2020: By 2020, Johnson & Johnson was listed among the Top 3 on the Gartner Supply
Chain list. This indicates they became a leading force in supply chain management by that point.
In 2023, Johnson and Johnson was ranked 4th in the Gartner Supply Chain, which made it a strong
candidate for our research.
Moreover, the company has been in business for over 138 years now which offers a unique window into the
long-term challenges and triumphs of their supply chain.
J&J’S SUPPLY CHAIN
JOHNSON & JOHNSON’S SUPPLY CHAIN
Focus on being a digital-first company: Their motto is providing the Right Product at the Right Place at the Right Time.
Managing Inherent Complexity in Consumer Business: Every change on a product no matter how big or how small will get a new production
code to make sure the right product is gets manufactured correctly. J&J Consumer has thousands of codes globally with approximately 25%
changing every year. Master Code containing all predecessor codes for the new changed product.
Mapping Thousands of Codes to their Parents: From Excel to a Shiny Web Portal. Central repository allows for multiple analytics use cases.
Simple interface with all necessary information.
Providing an overview of Code Networks: Planners only have visibility on what they remember resulting in a loss of historical context. Better
lifecycle management & portfolio understanding.
Inventory Model (AIM):
Inventory Entitlement: Globally aligned components & methodology for inventory entitlement. Parameters derived based on reality.
Top down & bottom up target reconciliation.
Inventory Control Tower: Highlight & Manage Exceptions. Focus on inventory drivers. Proactive alerts & impact analysis. Action
tracking to manage performance.
Global Inventory Reporting: Inventory Performance Tracking. Target vs Actual Reporting. Global, Regional, Operating Level
Dashboard
ADVANCEMENTS
(TECHNOLOGICAL)
GLOBAL LIGHTHOUSE NETWORK
WORLD ECONOMIC FORUM + McKINSEY
FOURTH INDUSTRIAL REVOLUTION
It's an initiative to recognize Johnson & Johnson holds the
companies for their leadership record for the highest number
in using advanced technologies of lighthouses in the healthcare
from the Fourth Industrial and pharmaceutical sector i.e.
Revolution to transform their 10 lighthouses, as of 2024.
operations.
ADVANCEMENTS IN TECHNOLOGY
AT JOHNSON AND JOHNSON
AGILE & BETTER BIG DATA “NEVER SOLD OUT” TRACK AND TRACE
SILOED TECH ANALYTICS TECHNOLOGY SENSORS
To enable real-time, interactive Johnson & Johnson’s strategic A new system at Johnson & A lot can happen between the
and accurate manufacturing use of data has led to a more Johnson Vision Care ensures that time a package leaves a
processes, J&J employees predictive and responsive supply repeat customers never see a manufacturing plant and its
transformed and improved chain. This data-driven approach “sold out” message when they log arrival at the final destination.
siloed technologies by allows for accurate forecasting, on to order their contact lenses, This is where track-and-trace
leveraging digital analytics to improved decision-making, and thanks to a technology that sensors enter embedded in a
optimize productivity, improve the identification of inefficiencies anticipates when they’ll reorder shipment, allowing for ‘end-to-
prediction of customer demand within the supply chain. and reserves lenses just for them. end visibility’.
and make the supply chain more The sensor utilizes GPS
agile. “Creating such a platform Eg. Stockpiling during COVID They received a Lighthouse technology, so it can be
has helped us to maximize 2019, monitored typical order designation for transforming continually monitored from the
efficiency and competitiveness patterns, flag major deviations customer service experience by time it departs its initial location
at scale and drive business and it alerts supply chain creating a one-stop shop for to the time it reaches its ultimate
performance improvements.” professionals to investigate it. order management. location.
ADVANCEMENTS IN TECHNOLOGY
AT JOHNSON AND JOHNSON
IoT SENSOR YuMi ROBOTIC SMART GLASS AI POWERED
TECHNOLOGY TECHNOLOGY TECHNOLOGY DIGITAL TWINS
Internet of Things (IoT) sensors J&J introduced YuMi, a This technology such as Google This concept involves creating a
are currently being utilised to collaborative dual-arm robot Glass, allows someone at a real-time digital replica of the
collect data from various with precision and ability to work remote location to virtually see entire supply chain network,
manufacturing processes. This alongside humans. This has the exact same thing that a including manufacturing
data is then processed by revolutionized routine tasks on worker standing in front of a facilities, warehouses, and
analytics systems to constantly the floor, significantly boosting machine is seeing. transportation routes.
refine and perfect operations in productivity.
real-time. When paired with “privileged AI would analyze vast amounts
For eg. It also measures remote access,” you can go of data flowing through this
temperature, so recipients know further: An expert in a remote digital twin, allowing for real-
whether the product has location is given elevated security time optimization of processes,
experienced fluctuations during clearance and can actually tap resource allocation, and
supply chain or logistics that into the equipment, pull data identifying potential bottlenecks
might interfere with its quality. from it and change the settings. before they occur.
ADVANCEMENTS
(ECONOMIC)
ADVANCEMENTS IN ECONOMICS
AT JOHNSON AND JOHNSON
DYNAMIC LEAN FINANCIAL BLOCKCHAIN FOR ‘RESOLUTION’
DISCOUNTING PRACTICES TRADE FINANCE SYSTEM
Johnson & Johnson's Dynamic The company achieves this by This technology allows for real- Johnson & Johnson's
Discounting enables suppliers to refraining from excessive time tracking of goods and collaboration is their partnership
modify payment terms for early inventory or inefficient verification of documents, reducing with public hospitals in Italy to
payments with discounts. procurement processes which has the risk of fraud and errors. implement the ‘Resolution’ system.
Suppliers can choose standard led to significant productivity Additionally, blockchain The innovative technologies like
early payment options or opt for gains and cost reductions. streamlines the payment process by digitally augmented pill bottles
dynamic discounts via the AP It also makes processing providing a decentralized ledger and even more advanced
Supplier Portal. This process faster,more reliable, and that ensures all parties have access traceability systems ensuring
grants flexibility, control, and predictable, leading to enhanced to the same, unalterable medication adherence, reduces the
expedited payments for suppliers operational efficiency enabling information, thereby accelerating time clinical staff spend on
engaged with J&J. It streamlines J&J to launch new products settlement times and reducing logistical tasks, allows healthcare
cash flow management and without expanding infrastructure, operational costs. This integration professionals to focus more on
enhances financial efficiency for and with reduced cycle times, and of blockchain into trade finance patient care ultimately reducing
both suppliers and J&J. lower operational costs. improves their supply chain costs and increasing efficiency.
resilience and financial efficiency.
ADVANCEMENTS IN ECONOMICS
AT JOHNSON AND JOHNSON
ADVANCE CASE CARBON NEUTRALITY PURCHASE ORDER
MANAGEMENT GOAL FINANCING
J&J’s Supply Chain Customer Solutions The company is committed to ambitious Apart from the fact that Johnson & Johnson
team implemented Advance Case climate action, aiming to achieve carbon works with over 40,000+ suppliers all over
Management (ACM) platform to predict neutrality in not just its Supply Chain but all the world, they also offer financing based on
product range for surgeons accurately, of the operations by 2030. confirmed purchase orders to their suppliers
resulting in up to a 60% reduction in While primarily focused on environmental which ensures timely fulfillment of orders,
instrument trays required for cases and sustainability, this climate action also has streamlining the cash flow and operational
instrument-sterilization costs. The ACM financial benefits through cost savings from capabilities. This financial assistance
platform digitizes processes, leading to fewer renewable energy adoption and operational strengthens supplier relationships, fosters a
touchpoints focused on logistics and more efficiencies. resilient supply chain, and enables J&J to
time supporting customer needs and patient meet customer demands effectively while
care, contributing to overall cost reduction. mitigating potential disruptions.
ADVANCEMENTS
(SOCIAL)
ADVANCEMENTS IN SOCIETY
AT JOHNSON AND JOHNSON
IMPACT ON INVESTMENT ON SOLUTION TO LEADERSHIP
QUALITY D,E,I IN SUPPLY SOCIETAL DEVELOPMENT
OF LIFE CHAIN CHALLANGES PROGRAMS
These supply chain optimizations The company has invested $5.88 The company has also addressed The company has 1,000 employees
have direct implications for billion in total Global Impact societal challenges such as the need engaged in its enterprise sponsorship
consumers. By ensuring consistent Spend, which likely includes for more efficient tracking of program, which suggests a strong
product quality, availability, and initiatives that support diversity, medical devices. They have been at commitment to employee
timely delivery, Johnson & equity, and inclusion (DEI) the forefront of implementing development and diversity. J&J
Johnson's efforts in supply chain efforts within its supply chain. Unique Device Identifiers (UDIs) supports employee engagement and
management contribute to a better The company has extended its into the barcodes on their products, sponsorship in its supply chain
consumer experience. The reach by collaborating with including sutures and artificial through LDPs that provide hands-
streamlining of processes, suppliers to advance DEI joints. This innovation helps reduce on experience, training, and
standardization of products, and initiatives, such as partnering injuries and errors by ensuring that mentorship for students and
consolidation of suppliers ultimately with American Express and the medical devices can be easily professionals interested in supply
lead to more reliable and efficient Women’s Business Enterprise identified and tracked. This solution chain management. These programs
supply chain operations, translating National Council (WBENC). addresses a critical challenge in the attract and develop diverse talent,
into improved access to essential healthcare industry, making it safer promoting equity and inclusivity
products like baby care items. and more efficient. within J&J's supply chain workforce.
ADVANCEMENTS IN SOCIETY
AT JOHNSON AND JOHNSON
GLOBAL ERG
CHAPTERS
Johnson & Johnson has 496 global Employee
Resource Group (ERG) chapters.
EMEA (Europe, Middle East, and Africa): 104
chapters
North America: 323 chapters
LATAM (Latin America): 19 chapters
APAC (Asia-Pacific): 38 chapters
These chapters enable employees from diverse
backgrounds to connect, collaborate, and
contribute to the company's success while
ensuring that the company's workforce and
supply chain reflect the diversity of the
communities it serves.
ADVANCEMENTS
(ENVIRONMENTAL)
Globally, 16 billion injections are
administered annually, a number
increasing with the COVID-19
vaccine, while wealthier countries
like the The United States and
Canada generate the highest amount
of medical waste (8.4 and 8.2
kg/bed/day, respectively). With 15%
being hazardous materials that are
infectious, toxic, or radioactive.
ADVANCEMENTS IN ENVIROMENT
AT JOHNSON AND JOHNSON
DECARBONIZING SUSTAINABLE ADVANCING
OPERATIONS AND VALUE PRODUCTS ENVIROMENTAL
CHAIN AND SOLUTIONS HEALTH EQUTY
Advancing renewable electricity European Medical Waste Reduction Program • Developing metrics for measuring climate
100% renewable electricity in Europe Pharmaceutical Take-Back Program change impacts on mental health with Harvard
Delivering energy efficiency Reduced raw materials consumption in major through the Science for Minds Initiative.
Tapping into new energy sources- depressive disorder treatment. • Supporting a postdoctoral fellow studying
Geothermal. Replacing plastic trays with Pulp Injection nature and mental health with the GUND
Suppliers Sustainability Program- Molding (PIM) tray. institute of environment.
Committed to include all suppliers by Replaces virgin paperboard to Post-consumer • Co-authored "White Paper on Environmental
2025 recycled paperboard used. and Mental Health in Europe" with IEEP and the
Support for climate-friendly policies Eastman’s Eastar™ Renew 6763 co- Barcelona Institute for Global Health.
Collaborating for greater impact polyester • Forests' role in human health and deforestation-
World Wildlife Fund (WWF)
RENEWABLE ELECTRICITY
FOOTPRINT
ADVANCEMENTS
(ETHICAL)
ADVANCEMENTS IN ETHICS
AT JOHNSON AND JOHNSON
TRANSPARENCY ETHICAL SUPPLIER CORRUPTION AND
BOOST ALLOCATION DIVERSITY BRIBERY CONTROL
While a Lighthouse designation by During the Covid-19, J&J received By viewing their extended supply J&J takes a strong stance against
the World Economic Forum excessive demand for an anti-viral chain as an extension of their own corruption and bribery consistent
(WEF) focuses on technological drug raising the issue of ethical business, they expect all suppliers with the anti-bribery laws that
advancements, it can indirectly allocation of supply to save most to adhere to the same level of exist in many countries around the
contribute to J&J’s efforts towards lives. They worked to establish an integrity and environmental, social, world.
a more ethical supply chain by ethical framework led by the Chief and governance (ESG) In their policies, comprehensively
boosting transparency and Medical Officer of J&J’s requirements. cover anti- corruption and anti-
increasing efficiency. pharmaceuticals sector. The first & They maintain a rigorous system bribery position, which follows the
Steps J&J took: foremost priority resolved not to for supplier selection, engagement, U.S. Foreign Corrupt Practices
Monitor compliance with lessen the medicine’s availability to education, assessment, and Act, the UK Bribery Act, and
the Responsibility people with HIV. The second auditing to achieve supply base other applicable local anti-bribery
Standards for Suppliers priority was done by allocating the integrity. Supplier diversity is also and anti-corruption laws and
Carry out Environment, relatively small excess they had after a priority, contributing to regulations exposing unethical
Health & Safety (EHS) serving HIV patients. The final economic inclusion and job practices taking place.
audits priority led to allocating the excess creation.
Conduct social audits only to physicians and researchers
undertaking a rigorous clinical trial.
KEY COLLABORATIONS OF J&J
MICROSOFT X JOHNSON & JOHNSON
J&J's goals for their supply chain:
Shift from a push to a pull supply chain model, delivering products only when needed.
Become a more agile and resilient manufacturer to avoid stock shortages.
Improve quality and reduce errors in production.
Microsoft's technologies used by J&J:
Azure cloud platform for data storage and access.
AI and machine learning for predictive maintenance and real-time adjustments.
IoT sensors for collecting data from factory equipment.
MES (Manufacturing Execution Systems) for managing production processes.
Benefits of the collaboration:
Increased visibility into operations through real-time data collection.
Improved decision-making with data-driven insights.
Reduced waste and improved product quality through AI-powered maintenance.
Faster response to supply chain disruptions and customer demands.
Empowered frontline workers with better tools and training.
Overall impact:
J&J has risen to become a leader in healthcare supply chain management.
The collaboration has improved efficiency, reduced costs, and ensured patients receive the products they need.
DAS42 X JOHNSON & JOHNSON
J&J's Goals:
Modernize their Business Intelligence platform for improved supply chain visibility and decision making.
Achieve real-time data access for proactive problem-solving.
Maintain a familiar user experience for supply chain managers during the transition.
DAS42's Solution:
Develop a new, lightweight, and flexible data platform using Looker (part of Google Cloud Platform).
Migrate existing applications (OTIF, Delivery Control Tower, QBR) and build a new one.
Design a customized user interface replicating the look and feel of the legacy system.
Benefits of the Collaboration:
Faster and smoother transition from legacy system to looker.
Streamlined development process for incorporating new data analysis needs.
Real-time data access and improved supply chain visibility for better decision making.
Minimized need for staff training due to the familiar user interface.
Enhanced supply chain resilience during a time of global disruptions.
Overall Impact:
J&J can effectively manage their complex supply chains and ensure uninterrupted delivery of vital products.
The collaboration with DAS42 has been instrumental in J&J's success in fulfilling their critical mission.
COMPETITOR ANALYSIS
JOHNSON & JOHNSON’S COMPETITOR ANALYSIS
PFIZER
Founded in 1849, Pfizer is an America pharma and bio-tech company that AstraZeneca, a pharmaceutical giant founded in 1992, develops and
develops medications and vaccines across various fields like manufactures drugs for various health areas like cancer, heart disease, and
immunology,oncology and cardiology. respiratory illnesses, is headquartered in Cambridge, UK.
Global Manufacturing Powerhouse: Maintains 58 global manufacturing Data Management: Resilient data management model. Handle high data
sites leveraging automation, data, and digital monitoring. volume, velocity, and variety. Investment in data engineering allows for
Data-Driven Decisions: Utilizes advanced analytics for streamlined efficient data extraction and utilization.
operations and improved decision-making & real-time insights for swift Data Analytics and AI: Leverages data science and machine learning to
production. identify valuable datasets and gain process insights. Advanced AI
Unwavering Quality: Prioritizes patient safety, rigorous quality control approaches like NLP and machine learning are used for tasks like quality
measures, highest industry standards for quality. control prediction.
Proactive Approach to Shortages: Actively predicts demand to avoid drug Omnichannel Strategy: The right product information is delivered to
shortages. physicians at the right time through various channels.
Extended Product Shelf Life: Maintains compliance with programs that Drug Discovery and Development: AI algorithms and machine learning are
allow safe use of products beyond their initial expiration date u Extended employed to analyze vast amounts of data and identify promising drug
Use Dating Support. candidates.
Automation for Efficiency: Invests in automation across the supply chain Global Innovation and Technology Centre (GITC): Focus on innovative
for efficiency, production capacity, and overall resilience. solutions for the global supply chain. Offers end-to-end capabilities in areas
Rapid Response & Innovation: Combines rapid response teams with like IT infrastructure, cloud computing, and data analytics.
science-based solutions to address supply chain issues quickly and Future Focus: The company aims to increase AI adoption across 60-80% of
effectively. This approach leverages both human expertise and scientific its business processes. They are exploring intelligent automation that goes
innovation. beyond basic RPA tasks.
FUTURE SCOPE
AND
SUGGESTIONS
FUTURE SCOPE AND SUGGESTIONS
FOR JOHNSON AND JOHNSON
1. QUANTUM AI FOR SCENARIO PLANNING
Quantum-inspired AI can analyze a wider range of variables and potential disruptions, helping J&J identify even the most obscure risks. They can develop
more effective response strategies like having backup suppliers, alternative transportation routes planned, or flexible production schedules in place.
2. HYPER-LOCALIZED DEMAND FORECASTING
Hyperlocal forecasting is an AI-solution that takes the context of each demand driver within each individual location into account to make accurate demand
forecasts on the most granular level. Leveraging hyper-localized data like weather patterns, social media sentiment analysis, data from local pharmacies and
hospitals etc. enables J&J to optimize production, inventory allocation, and targeted marketing campaigns, giving them a competitive edge in responsiveness
to demand fluctuations while potentially reducing waste and stockouts.
3. BACKUP FOR HEAVY CLOUD RELIABILITY
The company currently leverages the Amazon Web Services Cloud to run 120 applications and for its big data architecture allowing it to complete highly
intensive and complex data modeling. AWS like any other system is vulnerable to hacking, virus and other security breeches. Company can think for a
backup for all this digital data.
FUTURE SCOPE AND SUGGESTIONS
FOR JOHNSON AND JOHNSON
4. CURRENCY AND COMMODITY PRICE HEDGING
Explore strategies for both commodity price and currency hedging to mitigate risks associated with fluctuations in raw material prices and exchange
rates. Utilizing hedging techniques such as futures contracts or options can provide stability in supply chain costs and cash flows, ensuring financial
predictability and resilience in a global market environment.
5. INVENTORY FINANCE
Johnson & Jonson can consider implementing inventory financing to optimize working capital. Securing financing against existing inventory or using it as
collateral for loans can ensure adequate inventory levels while improving cash flow management within the supply chain.
CONCLUSION
CONCLUSION
Johnson & Johnson has emerged as a leader in efficient supply chains, particularly within the healthcare sector. By leveraging data analytics,
automation, and even robotics, they've optimized production and logistics to meet fluctuating demands and ensure critical products reach
those who need them. This focus on innovation has earned them recognition as a model for other manufacturers, even during periods of
global crisis.
Johnson & Johnson’s success during the pandemic exemplifies how foresight and investment in supply chain infrastructure can pay dividends in
times of crisis!
THANK YOU
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