Johnson and Johnson 2010 Annual Report Download - page 22

JOHNSON & JOHNSON 2010 ANNUAL REPORT20
Johnson & Johnson Supply Chain (JJSC)
helps coordinate the path that our health
care products take to reach people—
doctors, nurses and patients, mothers,
fathers and other caregivers— and meet
their needs.
“Processing orders, myself and others
I work with genuinely feel how important
it is to get high-quality product to where
it ought to be,” says Elaine Eager,
International Supply Group Team Leader,
DePuy (Ireland), who once personally
transported a knee implant to a hospital due
to an urgent patient need. “It’s not simply
about moving product from one place to
another—it’s about transforming lives.”
Worldwide, JJSC includes a network
of manufacturing sites, external
manufacturers, distribution centers
and approximately 50,000 associates.
“Our supply chain organization is a large
part of who we are as a company and plays a
vital role in our ability to meet the needs of
our customers,” says Ajit Shetty, Ph.D.,
Corporate Vice President responsible for
JJSC. “We have deployed a new supply chain
operating model that will enable growth,
drive quality and compliance, and help us
run more efficiently so we can more effectively
serve patients and consumers worldwide.”
A NEW HOLISTIC MODEL
The formation of an enterprise supply
chain operating model was announced in
January 2010. Objectives of the new
organization are to enable growth, drive
quality and compliance, improve costs
and provide professional development
for our people.
Created by business leaders in all
three sectors, the model will coordinate
essential supply chain functions—like
procurement, customer and logistics
services, and asset allocation—while
maintaining critical decentralization of
sector operating companies, one of the
proven strategies of Johnson & Johnson.
“Ultimately, this new approach to the
supply chain will improve the experience
our customers have when doing business
with Johnson & Johnson companies while
generating incremental value for our
businesses,” says Shetty.
ENABLING PERFORMANCE TODAY
The organizational design for JJSC
includes a new operating model for Quality
& Compliance (Q&C) and a new structure
for Supply Chain Strategy and Project
Management. Cross-sector collaboration
that the new enterprise model helps
facilitate is already playing out in recovery
plans related to manufacturing issues
experienced at McNeil Consumer
Healthcare.
“The McNeil situation has all of us
rethinking business continuity planning
and how we utilize our plants and partner
suppliers,” says Robert Salerno, Vice
President, Supply Chain Strategy and
Project Management, JJSC. “Rather than
plan around one operating unit, we can
approach manufacturing from a
Johnson & Johnson vantage point. With
the new supply chain model, we’re more
able to leverage assets, best practices,
systems and technologies while offering
supply chain leaders professional
development opportunities across our
companies.”
The new operating model will also
create a single framework for Q&C across
companies, inclusive of common quality
standards by product types such as devices,
drugs and combination products.
“By standardizing processes in our
quality systems and by providing greater
oversight in this area, we can reduce
complexity and risk in the area of
quality,” says Kathy Wengel, Chief
Quality Officer, JJSC.
NURTURING GROWTH TOMORROW
In addition to improving quality and
compliance, the new model is designed
to enable growth and improve efficiency
and effectiveness. Again, cross-sector
collaboration—key to bringing forth
health care technologies that draw on
expertise from more than one business
segment—will flourish as manufacturing
and quality experts from various
business units have opportunities to
combine their talents.
“Campus Ireland” is one example.
There are six manufacturing
facilities in
Ireland across our Medical Devices
and
Diagnostics and Pharmaceutical
businesses. The close proximity of these
facilities enables the companies to
work collaboratively on a range of
projects while facilitating the transfer
of employees between sites for specific
projects, career development and
promotion opportunities. Campus
leaders in Ireland are also working toward
creation of a shared state-of-the-art
manufacturing facility for convergent
medical technology products.
“Our journey to coordinate our
supply chain organizations is under way,”
Shetty says. “The operating model has the
potential to benefit those we serve by
driving quality, efficiency and effectiveness
in all we do and touching—and
transforming—lives for years to come.”
T
here’s a pride and also a big sense of
responsibility in what we do,” says
Ray Hanley, Operations Development
Coordinator, DePuy (Ireland). “Some 600
knees leave here every day to be implanted in patients
around the world.”
PUTTING PATIENTS FIRST
“Close collaboration with colleagues
throughout the supply chain allows me to
gain a holistic appreciation of the steps
between my activities and each patient,”
says Ray Hanley in Cork, Ireland. When
such insights are used in decision-making,
“It’s how we put patients first.”
JOHNSON & JOHNSON SUPPLY CHAIN
Pathway to Patients