supply collaboration at jnj - a bimodal journey final
TRANSCRIPT
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: [email protected]
Vinay Sharma: [email protected]
Your Turn!