Therefore, by doing that, you're going to improve your bias, so you're not going to have a big range of what you think it was; what it could be. Now, what's RPA and why is it so important? That network is called a supply chain, and modern companies couldn't exist without them. Cognitive technologies such as artificial intelligence (AI) offers businesses an incredible opportunity to rethink traditional processes. Any company looking to establish an end-to-end supply chain digitization transformation should look to Johnson & Johnson and emulate what they're doing. Is it purple? My own team, I work for them. Neil Ackerman, Senior Director of Global Supply Chain Enterprise Planning and Innovation at Johnson & Johnson, sees the future of intelligent supply chain management (SCM) as one of the most exciting and innovative paths that can keep Johnson & Johnson ahead of the competition. Neil Ackerman: Let's take something simple -- well, relatively simple. Neil Ackerman: In the past, you had a human. Watch the video to see how the Advanced Planning team at Johnson & Johnson is focusing on the end-to-end infrastructure of the supply chain in order to develop the greatest efficiencies to improve the customer experience. Thank you so much for talking with us today. How do you know who is going to be sick where next? Johnson & Johnson is an Affirmative Action and Equal Opportunity Employer. You have make understanding what's happening with source and they know where to ship it afterward with deliver. The endgame, says Colarusso, is an advanced manufacturing ecosystem that not only adapts to changing customer and patient needs but serves as a window on the future, enabling the company to chart the changes ahead—and be ready to act when they happen. "They want instant information and results.”. Other Johnson & Johnson supply chain teams have YuMi—a collaborative robot that can do certain repetitive assembly tasks to help increase productivity and get products to consumers faster. Now, it's not the same. It's an analytics layer of linear mixed integers and tools that are coming together to actually create that demand plan. Michael Krigsman: Supply chain is a core operation at J&J. Our accuracy was good, but it wasn't great before. That's why the supply chain is so important within the company. That's step one. These data crawlers go across and they collect data and they index all this data. This grand aim comprises its customers, staff, communities, and the environment, and its annual Health for Humanity reports sheds fascinating light on the ways in which its operations are geared to the core towards CSR and sustainability. “We are working to optimize the supply chain end-to-end so that we not only meet the needs of the patient today, but also anticipate and understand how we can meet their needs tomorrow in a transformational way,” says Remo Colarusso Victor – this was a fascinating look at how Johnson & Johnson has transformed its own supply chain to incorporate IoT. With goods being manufactured all over the world, and customers expecting a very personal experience when they purchase goods and services, the idea of an intelligent, efficient supply chain becomes an increasingly vital part of doing business. A souped-up supply chain like the one at Johnson & Johnson. These days, there's nothing simple about supply and demand. What really matters is, are all your stakeholders getting what they want when they want it delivered, so on time, in full, delivered? We are it. Formulations and packaging were slightly different, as vendors and packaging decisions were made regionally. Think about other companies, too. Twenty years ago, some of these processes would have seemed like science-fiction, yet the future is getting ever-closer as technology and innovation continue to dominate the fields of medicine, logistics, and supply chain management. Capgemini and Johnson & Johnson delivered a successful transformation project that not only supports Johnson & Johnson’s business interests, but also strengthens the organization’s ability to serve its customers. Michael Krigsman: Neil, tell us about Johnson & Johnson and tell us about your role. It starts by identifying the areas where Industry 4.0 tools and techniques can deliver the most impact, then designing and delivering them in a series of incremental steps called “test and learns," while taking careful note of the results. That's where I find the most excitement to be. Michael Krigsman: Neil, when you talk about customer experience in this context of supply chain and advanced planning, please elaborate on that for us. We want to be an agile solution provider for customers. About I have been taking lead Supply chain transformation & Customer Experience (CX) at J&J Asia Pacific, with a board range of hands-on experiences in Demand Supply planning, Logistics, Purchasing, Process IT consulting, Customer Service management in FMCG and Healthcare industry. It'd have to come to you. As the world rapidly learns to adapt to an ever-changing landscape, Johnson & Johnson’s supply chain, which produces everything from contact lenses to prescription medications to baby shampoo, is currently holding steady and meeting patient needs. In the past, hospitals were these big, big buildings and they were sort of not everywhere. The self-driving machine would say, "We now know when this has all happened in the past. You have procurement still talking to folks in deliver. In supply chain, not many people can be just supply chain expertise. When she began her career, tracking products through the supply chain involved moving magnets around on a board and holding on to paper delivery receipts. Not just J&J is it important to. CxOTalk offers in-depth discussions on CXO issues including leadership, managing disruption, and digital transformation with the world's top performers in business, technology, education and government. Let's talk a little bit about really how big it is because people don't realize. It's our belief that the supply-chain function shouldn't just be playing an active part in a company's digital transformation—it should assume a leadership role. Now, that is also very difficult, especially in a global world when you're making things all over the world. A lot of people don't really understand how these pieces and parts get to you. Johnson & Johnson Medical Devices Companies, Johnson & Johnson Moves Up Eight Spots on the Gartner Top 25 Supply Chain Index, Vice President, Supply Chain, Janssen Pharmaceuticals, 6 Next Gen Healthcare Innovations Designed to Boost Your Mind, Body and Soul, 4 Stories of Johnson & Johnson Customer Service Employees Who've Saved Lives, How Johnson & Johnson's Supply Chain Made Strides in 2016, COVID-19 Update: Your Latest Questions About Johnson & Johnson's Investigational Vaccine Candidate Answered, The COVID-19 Data Plan: 3 Innovative Ways Johnson & Johnson Is Using Data Science to Fight the Pandemic. It's an advantage. Last month, Johnson & Johnson Consumer Health launched its Healthy Lives Mission — with a commitment to invest $800 million through 2030 to meet ambitious goals of improving people’s health while protecting the health of the planet. The arguments are compelling. It could take me 15 minutes. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, age, national origin, or protected veteran status and will not be discriminated against on the basis of disability. "For many years we have allowed the products to develop on their own merit and regional marketing," said Francesco Pannone, J&J's global c… Are you minimizing your out-of-stock rates and maximizing utilization? Today, he oversees the large Texas health system’s supply chain through the pandemic and beyond. Patients have greater expectations. It's important to space. 3D printing is a form of supply chain. Neil Ackerman: I work in advanced planning. Neil Ackerman: It means that not only are you exceeding your customer expectations, but you're at the leading edge of technology, cost structure, efficiency. Neil Ackerman: That is a challenge that I love and I know my peers who work on it love. We don't like that color. Michael Krigsman: How? Remo Colarusso,Vice President, Supply Chain, Janssen Pharmaceuticals, Vice President, Supply Chain, Janssen Pharmaceuticals, part of the Johnson & Johnson family of companies. These different pieces that come together, they're one team. Johnson & Johnson’s ethos is centralised on one purpose: to improve the health of humanity. Yeah, it's really hard, but it's really fun, and it's worth doing because, when you do it right, you lower your fixed cost, your variable cost, your trans cost. It does mean that, over the long-term, you're going to get better and better and better. Cognitive automation and artificial intelligence are becoming core parts of the innovation strategy for many organizations. I think another important factoid would be that, of the thousands and tens of thousands of employees, over half are in supply chain, so over 60,000 employees just in supply chain alone globally at J&J. The customer has greater expectations. And so, how I define cognitive automation is robotic process automation, RPA, plus AI, artificial intelligence, equals cognitive automation. Use of this site constitutes your consent to application of such laws and regulations and to our Privacy Policy. Advances like these can not only enable Johnson & Johnson to quickly identify potential problems in manufacturing, but also help predict them before they pop up. Radha Krishna Mothadaka Program Leader, Supply Chain Network Transformation at Johnson & Johnson Mumbai, Maharashtra, India 500+ connections Minus, of course, the other, I would say, e-commerce companies that we can talk about, even them are not accurate all the time. There are Merlins all over the place, not just one. Let's pull it together and then create an output using all this information." Over the years, they've made minor tweaks in individual markets, like changing suppliers. It operates in 175 countries. I want to be really clear that supply chain is no longer a cost center. Or if it were possible to track and trace a pill to help determine the authenticity of a drug and how efficiently it was delivered to the patient. The supply chain occupies a unique, central position within the organization, closely linked to other critical functions and the material and information that flows between them. You order something. A supply chain as big as Johnson & Johnson’s is massively complex, with many moving parts. Now, what would be really cool is if it says, "There's a date. I believe that supply chain is the most important part of a business and to be able to talk to my peers and friends about it is a great opportunity, especially here at the MIT Engine. This digitization trend has helped democratize healthcare, creating a new generation of patients who are not only more savvy about the services they're receiving, but who are also taking a more active role in their treatment journey. You should view the News section and the most recent SEC Filings in the Investor section in order to receive the most current information made available by Johnson & Johnson Services, Inc. Michael Krigsman: When you talk about self-driving, explore that for us. Is it orange? End-to-end Supply Chain leader of new product launches and lifecycle management/engineering for the Cardiovascular and Specialty Solutions (CSS) division of Johnson & Johnson Medical Devices. You pick it up and you say, "When is widget A going to arrive?". I've got to make a couple of phone calls. Johnson & Johnson announced the appointment of a number of senior leaders to the Company's Executive Committee, including a new addition to its supply chain team. We have hundreds of thousands of SKUs, right? Thank you to Aera Technology for underwriting CXOTALK. At the end of the day, they were creating a demand and supply plan, right? The whole global economic structure really depends on trade and the ability to create these magic, what I call, supply chain magic. Michael Krigsman: We're at MIT, speaking about supply chain innovation and cognitive automation with Neil Ackerman from Johnson & Johnson. These are just two innovative data-driven technologies the company is working to develop right now in the hopes of digitizing—and improving—the customer experience. Over the long term, we've been able to be a winner and our return on assets have demonstrated such matters. As a result of that, in their whole lives they want that same efficiency. I'm real excited to be here. "Hi. Boom. It was not made, but the customer still wants the date of when it's going to be there. How do you control the inventory? Obviously, this is the beginning of that. Let's keep moving. The human would create this idea of what was the historical forecast. Does it mean that the human was perfect all the time? What matters for this discussion is, RPA is essentially saying, "Give me all this data. Whenever you pop a pill to help ease aches and pains or take an injection to treat a chronic illness, you’re the last in a long network of people and places—from the producers who manufactured those medications to the distribution centers that delivered them to the retailers worldwide who sell them to consumers. You want to know or the person listening wants to know when they're going to get it. Meanwhile, medical providers are delivering care in equally innovative ways, such as relaying test results and booking appointments online. This allows the team to scale the solutions that show promise, while stopping those that do not. Except, actually, really hard. Then we know, based on historical context, when it's delivered and when it's going to be in a distribution center.". I have to find out where it is, what we're making. Thanks to all of these efforts, the more insight and control Johnson & Johnson can gain further upstream in the supply chain, the more reliably product can be made available to meet demand for it. We also have a responsibility to teach the world that supply chain is core to what is happening here, and so that's why we're so excited to talk about it. Neil Ackerman: Well, thanks for having me. Yeah. Neil Ackerman: Supply chain is really a competitive advantage when you can really knock it out of the park and so, luckily, J&J has had great success with supply chain; always ranked in the top tier of companies. When we told them it was going to be this date, were we actually accurate with that date? You're a customer, and you want to know when widget A is going to arrive. We manufacture more than 26 billion product units per year, from raw component sourcing to end product distribution as efficiently and effectively as possible with high quality, compliance and service performance. All Rights Reserved. This does it for you, plus artificial intelligence, which says, "Give me all your AI, your unstructured and structured data. Companies can’t do their job of sourcing and assembling thousands of components into high-quality products that reach people when and where they’re needed without that supply chain engine humming smoothly and efficiently. Please see our Privacy Policy. Let's come up with the demand equation. The customer [service agent] in the past might have said, "I have to look into it." Neil Ackerman: What makes up the J&J supply chain? In reality, it is a far more complex process, with an incredible amount of moving parts that need to be managed and controlled, with predictable, dependable outcomes. In the self-driving supply chain, you also need a capable to promise date. Neil Ackerman: All that, though, is not done by one person. Now, every company has different problems at different times over the years. What's fascinating about it is, that's not good enough. What do we mean by end-to-end value? While the company is eager to test new ideas that haven’t been attempted in the industry before, it's equally dedicated to simultaneously maintaining the reliable, robust operation that consumers know and trust. Beyond that, Neil talks about taking supply chain analytics to the next level by exploring cognitive automation, a combination of robotic process automation (RPA) and Artificial Intelligence (AI) that could revolutionize how Johnson & Johnson serves its customers, and give the company a winning edge. It's because we worked with them to create a cognitive platform, a self-driving machine that takes a bunch of important data pieces that are not necessarily structured, structured and unstructured, that come together to create an index. 2 thoughts on “ Johnson & Johnson: Embracing Digital Transformation ” May 1, 2018 EIO says: I see digital transformation affecting J&J in two different ways: in the way J&J operates internally (e.g., using digitalization to improve supply chain management or using AI in their drug development process) and in the products it offers (e.g., RA-RA). We want to have an end-to-end value, and we want to inspire our employees and people. We then put on top of it our own algorithms that we developed to give us this forecast, with their help, of course. There's the date, and it tells the customer where it's coming from. That's globally. Supply chain now has come from this, "Oh, we're kind of here, like we don't really know," to, "We're the sexy thing now," right? Operational Profile 1.1 Please state your main activity(ies) within the palm oil supply chain. Let me do tools and actions for you, so the human doesn't have to do it." One of those partners happens to be Aera. It's because their whole lives around them around have also become more efficient; effective, you could argue. With all that data--this is multi-integers that are all coming together--they spin it. Neptune Software Digital Ecosystem Transformation We're talking about the idea. Now you have ambulatory centers everywhere. By leveraging the power ofdigital technologies and data, we aspire to improve the lives of our patients,consumers, & employees. You improve efficiency and customers are happier. You also have to make sure that you can source the material, that you can make it so your manufacturing is ready to go, and that you have enough trucks to deliver it. I would say that I would push the audience here and say, actually, supply chain is a new revenue generating machine. Why is it so great? This is not just a typical item. We're responsible for the shipping and delivery. There's a series of metrics in supply chain, that maybe don't matter for today, related to what they call forecast bias or mean absolute percent error, pieces that are different types of metrics. Now, we can define it as, hey, it's great in this particular division. Well, we have some big, strategic ideas about supply chain. Johnson & Johnson RSPO Annual Communications of Progress 2019 Consumer Goods Manufacturer Form Page 1/8 Consumer Goods Manufacturer 1. It's getting the plastics, the ceramics, the metals, whatever you need where it needs to be. Now that the world has become flat, and you can get anything you want from anywhere, we have those responsibilities. “We are working to optimize the supply chain end-to-end so that we not only meet the needs of the patient today, but also anticipate and understand how we can meet their needs tomorrow in a transformational way,” says Remo Colarusso Strategy Activation: The Key to Supply Chain Transformation Recorded: Nov 27 2017 59 mins. I really appreciate it. What drives outputs? This is my favorite topic. Find out how RB uses cognitive technologies in processes such as forecasting and pricing and promotions. I'm a customer service agent and I'm picking up the phone." People don't realize this stuff goes on boats and planes, and it goes through customers, and it goes through regulations. Impact of Supply Chain Transformation on Johnson and Johnson Michael Krigsman: This investment in technology, investment in data, investment in new processes sounds like supply chain is so important to J&J that it makes it worth, obviously, this investment in processes, investment in data, investment in technology that you're making. By achieving a more accurate demand forecast, Johnson & Johnson has improved its UFR, while consistently meeting inventory targets. What should it be? In this vibrant hub with Johnson and Johnson, I am focusing on Supply Chain innovations end-to-end, finding at every visit new leading-edge technology that ensures a fantastic customer experience for all our stakeholders. How are you doing? Imagine, for instance, if a pill bottle, with the appropriate security and privacy controls in place, could monitor how often you were using medication and send this info back to a healthcare company or provider to help fine-tune your treatment regimen. The company obviously has been around a long time, unlike some of the more, I would say, other types of companies like the FANG stocks that have been there, the Facebook, Amazon, Netflix, Google. Well, first of all, even if you get all the data, you have to be able to understand that data is not linear in this world. Michael Krigsman: This investment in technology, investment in data, investment in new processes sounds like supply chain is so important to J&J that it makes it worth, obviously, this investment in processes, investment in data, investment in technology that you're making. It used to be that sales and marketing generated revenue and supply chain was a cost center. Kathy Wengel, Johnson & Johnson Worldwide Vice President, Supply Chain, asserts that the company's supply chain transformation has taken it from a totally decentralized multi-department approach without visibility, to a globally aligned organization, per company press release. Now, a demand plan alone is nice. Supply chain, for those companies that know how to work it, can become your revenue generating machine. No. Elizabeth Faulkner - Senior Director, Johnson and Johnson, Supply Chain Academy. Innovations such as next-generation manufacturing tools and techniques that are introducing radical changes on the factory floor—a trend often referred to as “Industry 4.0.”. For Supply Management Month, he takes us on a behind-the-scenes look at how he and his massive global team are revolutionizing the way supply chains hum today and well into the future. There's always a new way to transform it or to win to make it even better. Michael Krigsman: Give us some examples of these inputs. Tony Johnson was close to retirement when Baylor Scott & White Health (Dallas, TX) provided him with one last adventure as SVP and Chief Supply Chain Officer in 2016. A souped-up supply chain like the one at Johnson & Johnson. This entails implementing innovations throughout the supply chain to provide what Colarusso calls end-to-end visibility. Inputs. Even when they're at a 5% to 8% error rate, that's kind of a lot for all their packages, right? Now you start focusing on the future of supply chain, the idea that this cognitive machine is going to literally tell you, in the future, and say, "Actually, we know there's a back order, but you can tell the customer that it's going to come from these three different locations, it's going to be made on these dates, and it's going to deliver here.". Because it could take different pieces of data, not just your forecast, the historical forecast, but it can also take what are some of the expectations in the external world that are going to happen, what's happening in your forecast for the future, where you're going to get source from, what's that going to look like, and you could put together, actually, a really wonderful, self-driving, automated system. We're responsible for the creation of the personalization. I focus on delivering an improved customer experience and creating a competitive advantage by levering advanced capabilities within the supply chain. "COVID-19 Inspired Me to Improve Patient Care": How Two Nurses Devised New Ways to Help Kids and Fellow Nurses During the Pandemic. Specifically, learn how it is developing a self-driving automated system that gathers and indexes data and then creates an analytics layer, which in turn develops tools that can produce the most accurate forecast of output for a product. The analytics layer is the piece that is going to then create those different types of tools, whether it be a linear or, basically, a series of integers that will come together to create a number or a forecast, so the output of whatever you're looking for. Is it pink? Meet the women behind them. What's another path to get that done? "The company can apply the same concepts to prevent machine failure—such as with the predictive real-time modeling we do to determine when equipment is starting to deviate from historical process ranges, so we can proactively adjust the equipment before it does so," explains Colarusso. The ultimate goal of any successful supply chain is to better anticipate issues while meeting customer demand. What does that mean? You need a lot of knowledge about how things work from processes, cost structure, variable, fixed, trans cost, to fully understand how you can meet customer expectations, give them a great price, broad selection, and make sure that they get it in the most convenient and effective way. Imagine this. Meri Stevens, Vice President of Strategy and Deployment for Johnson & Johnson Supply Chain, is an experienced supply chain leader. Supply chain is definitely at the forefront of it but it's going to change a lot over the next three to five years. Janssen Supply Chain Vice President Remo Colarusso explains how the company is pioneering high-tech new strategies to perfect an age-old mandate: better anticipating and meeting customer demand—both now and in the future. What if you could 3D print it right on the spot? You need traditional tools, but you also need to understand that you can't win without it. What's 3D printing? This is the collaboration that I'm really trying to talk about, this idea that no one has the exclusivity on supply chain and genius. Data isn’t just important for helping make life easier for patients. Pharmaceutical Companies of Johnson & Johnson, Advancing New Healthcare Solutions Through Collaboration, Reimagining the Way Healthcare Is Delivered, Learn About the Company's Rich Heritage at Our Digital Museum. Neil Ackerman is the Senior Director, Global Supply Chain Advanced Planning, for Johnson and Johnson across all segments including Pharmaceuticals, Biomedical Devices and Consumer Products.
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