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Johnson & Johnson Overview

Johnson & Johnson Overview. Incorporated in 1887: Listed on NYSE in 1944 symbol JNJ 250 operating companies, 117K employees in 57 countries Three business segments totaling $65B in WW sales 2008 Consumer Health Care Medical Devices & Diagnostics Pharmaceuticals

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Johnson & Johnson Overview

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  1. Johnson & Johnson Overview • Incorporated in 1887: Listed on NYSE in 1944 symbol JNJ • 250 operating companies, 117K employees in 57 countries • Three business segments totaling $65B in WW sales 2008 • Consumer Health Care • Medical Devices & Diagnostics • Pharmaceuticals • Business decisions guided by tenets of the Johnson & Johnson CREDO • Dozens of pharma manufacturing & distribution centers • Thousands of intermediaries, 3PL’s and ship to locations

  2. Johnson & Johnson Sampling of Products Consumer Health Care Medical/Surgical Devices Prescription & OTC Medicines

  3. Supply Chain Disruptions & Risk Mitigation • Addressed operationally with governance/supporting expertise from… • BCP site teams and operating group champions • Brand protection & supply chain integrity organization • Corporate & local security personnel • Disruptions come in many flavors & sizes (ASIS groupings) • National (natural) disasters • Environmental accidents • Technology mishaps • Man-made crises • Also….business-related disruptions and crises • Supply/supplier risk (shift from contract suppliers to well-profiled supply partners) • Counterfeits, diversion, thefts, tampering, trademark & IP violations • Corporate BCP culture is based upon maintaining a core of expertise, widespread training, conducting exercises & continuous improvement • Conventional wisdom of redundant capacity and duplicity of capabilities is financially and operationally impractical in today’s dynamic environment • Focus on supply chain risk awareness & mitigation, preventive measures, disaster recovery planning, exercises and collaboration with 3rd parties.

  4. Sampling of Disruptions & Responses Challenges • H1N1 virus affecting workers at Mexico border facilities • Explosion at API Manufacturing Facility • Work stoppage – European sites • Counterfeit goods reported in marketplace BCP Response • Protect the employees, redirect supply, reprioritize orders • Assess all inventory, ration API, redirect new production and rebuild • Temporarily outsource operations while negotiations are conducted • Report, investigate, escalate, communicate, enforce, recover • Apply the 4 R’s • Recover • Redirect • Reprioritize • Rebuild

  5. Best Practices to Pharma Supply Chain Disruptions • Business continuity/ supply chain integrity is a matter of corporate culture (CREDO-based) focused upon prevention • Alignment of accountability and practices up and down supply chain from raw material sourcing through end customer. • Planning & exercises are vital to crisis management. Plans & policies must be documented, tested, modified and accessible • Collaboration with external organizations and experts is critical to any business enterprise (emergency response teams, civic leaders, gov’t. agencies, regulators, etc) • Extreme due diligence on your sources of supply and their suppliers (incl. D&B); create end-to-end visibility of product flow • Auditing/sampling is less effective than real time visibility & control • Never compromise your principles of safety and compliance

  6. Challenges & Research Agenda • Lack of visibility in the supply chain for regulated/high-risk prescription medicines – need for track & trace technology • Lack of aggregate views of supply chain inventory across product categories- need for shared, secured data base • Vulnerabilities exist in normal supply chain to gray market & counterfeits – need for authenticating processes and new “on the ground” security measures • The Internet has become the “world’s dispensary” – few regulatory controls or verification of source of supply – need for international controls

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