supply collaboration at jnj - a bimodal journey final

Over-the-Counter Medicines

#1 manufacturer

of over-the-counter

medicines

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Gartner Supply Chain Executive Conference – London, 20 September 2016

Riyaz Rawoof – Global Program Manager, Supply Collaboration, Johnson & Johnson

Vinay Sharma – Senior Manager, Global Supply Chain Consulting Practice, Tata Consultancy Services

Supply Collaboration – A Bimodal Journey

• Caring for the world, one person at a time...

inspires and unites the people of

Johnson & Johnson.

• Our Family of Companies comprises:

• The world’s sixth-largest consumer health

company

• The world’s most comprehensive medical devices

business

• The world’s sixth-largest biologics company

• And the world’s fifth-largest pharmaceuticals

company

• We have more than 265 operating companies in

more than 60 countries employing approximately

126,500 people. Our worldwide headquarters is in

New Brunswick, New Jersey, USA.

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Johnson & Johnson Company Background

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Johnson & Johnson Supply Chain (JJSC) Building the World’s Best Supply Chain

https://www.youtube.com/watch?v=wokCJhGyuLM

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JJSC Strategic Foundations

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Supply Collaboration Program Overview

Supply Collaboration Program objectives are to drive Visibility,

Speed and Efficiency in supply management

• Management by exception

• Enables weekly order cycle & Buckets

• Automated Processes

• Real time Collaboration

• Network Visibility

• Rapid Demand Changes

Supply Collaboration

SUPPLIERS J&J

A Bimodal Journey

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Innovation

Enabled Supply

Chain Collaboration

Operational

Collaboration Innovation

Supplier Enablement

Framework

Rapid roll-out

Collaboration Technologies

Collaboration Processes

Collaboration Program

Governance

Data driven process

improvements

Analytics Driven Decision

Making

Value centric model

Operational Collaboration coupled with emerging digital innovation

trends have created a bimodal journey

A Bimodal Collaboration Journey

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Elements of Supply Collaboration

There are various collaborative replenishment strategies based on

inventory ownership, level of integration, frequency etc.

“360°

Collaboration”

Discrete

Purchase order

collaboration

• Purchase orders,

Forecasts, Inventory

• Advanced Shipment

Notifications

Lean Kanban

Replenishment

Supplier

Managed

Inventory

• Forecasts, Inventory,

Inventory Targets

• Replenishment

orders

SUPPLIERS

J&J

CONTRACT MFG

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Challenges & Opportunities

Various challenges and opportunities were identified as we

traversed through the hazy roads.

• Silo processes

• Fragmented IT landscape

• Change Management

• Value Drivers

• Evolve current footprint with focus

on joint value creation

• Transform operating model with

connected governance

• Data Driven processes

• Analytics driven decision making

Challenges

Opportunities

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Data Science to drive collaboration decisions

Leveraging data science to identify suppliers and drive appropriate

replenishment methods for collaborations.

A fact based approach to

identify, suppliers for

collaboration and suggest

the replenishment method

for collaboration based

on in depth data science

driven analysis

Data Driven Diagnostics

Supplier Segmentation

Replenishment method selection

Illustrative

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Performance Management and Continuous Improvement

Network of Integrated performance drivers ensures Cross Value

Chain focus and avoids the drawback of functional silo.

Has the supplier met min / max targets in

prior period?

Will supplier miss min / max target in

planning period?

Is supplier maintaining sufficient inventory

to cover the lead time demand?

Did supplier miss min / max due to

supply issues?

Cross value chain focus

Harmonized measurements

across enterprise

Network of coordinated metrics

Analytics based trade-offs

Collaboration

SUPPLIERS J&J

Did supplier miss min / max due to J&J

forecast volatility?

Are the inventory levels optimized?

Is the supplier delivering reliably?

Are we optimizing lead times?

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The Path Ahead

Value based models and digital technologies combined with service

centric approach are shaping the future of supply collaboration.

Supply Collaboration Roadmap

End to End

focus

Leveraging

data and

insights to

mine value

Real time

visibility

Joint value

creation

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How to get in touch with us:

Riyaz Rawoof: rrawoof@its.jnj.com

Vinay Sharma: Vinay.sharma3@tcs.com

Your Turn!