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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
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
johnson johnson sampling of products
Johnson & Johnson Sampling of Products

Consumer Health Care

Medical/Surgical Devices

Prescription & OTC Medicines

supply chain disruptions risk mitigation
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.
sampling of disruptions responses
Sampling of Disruptions & Responses


  • 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
best practices to pharma supply chain disruptions
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
challenges research agenda
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