Johnson & Johnson Ltd.: Supply Chain Management
OM 4081 - Supply Chain Management
University of Cincinnati
July 19, 2024
Introduction
The past few decades has witnessed a complete revolution on the way
business is conducted and the approach through which organizations
relate to one another. This has been facilitated by globalization,
advancements in information technology, outsourcing, and a networked
economy. Organizations are increasingly finding it necessary to rely on
other organizations to effectively compete for scarce resources and ever-
dwindling clients.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
Smart companies are now relying heavily on effective supply chains to
compete successfully in the global economy. They have realized that they
must move away from their traditional business boundaries and cocoons
and collaborate with other businesses to maximize on their profits. One of
the areas they collaborate is on the supply networks, whereby each
dedicated business associate focuses on only a few vital planned activities.
This supply networks between organizations can be viewed as a new form
of organization exhibiting complex connections between the players. This
has given rise to the concept of supply chain management (Supply Chain
Management 2008).
By definition, supply chain management is the integrated procedure
involved in scheduling, controlling, and implementing the operations of the
supply chain as proficiently as possible between organizations. It is a
process that integrates major activities, from how the raw materials are
sourced and stored, the work-in-process inventory, to how the finished
products are distributed from the company to the consumers. It must also
include collaboration and coordination with supply network partners, in
most cases the suppliers of raw materials, third-party service providers,
customers, and intermediaries (Supply Chain Management 2008).
Many modern companies are actively managing their supply chain
activities in an attempt to achieve a sustainable competitive edge as well
as maximize the value of their customers. Managers have realized that
efficient and effective supply chains are vital tools for success (Supply
Chain Management 2007). One such company is Johnson & Johnson,
incorporated in the US, and has branches, networks, and subsidiaries all
over the world. Below I attempt to describe the company, its products, and
the supply chain in which it operates.
Johnson & Johnson Company
Johnson & Johnson, incorporated in the US, is a company that deals with a
wide range of products, especially baby products. It has continued to grow
steadily and to sustain itself in the ever competitive economy due to sound
management policies. The company has enjoyed over a hundred years of
continued growth and service to its most loyal customers. The company
deals primarily with health and well-being products. Their wide range of
products is used by at least a billion people worldwide everyday (Our
management Approach 2008).
Johnson & Johnson credits their endurance and strength to their consistent
business approach process and to the character of their customers. They
have a guiding philosophy that put the needs and well-being of customers
first. The management also takes responsibility towards their employees,
the community, and the world in general (Our Management Approach
2008). The company has a wide range of baby products ranging from
powders to medicated soaps.
Their baby powders helps to keep the skin soft, dry, and comfortable, while
reducing friction that can be uncomfortable to the baby. Here, the
company has developed Johnson’s baby powder, Johnson’s baby powder
comforting Vanilla & Jasmine, and Johnson’s baby powder calming
Lavender & Chamomile. To help treat baby skin irritation and diaper rash,
the company has developed Johnson baby powder medicated with aloe &
Vitamin E. For extra moisture absorption, the company has come up with
Johnson baby powder pure Cornstarch with Aloe Vera & Vitamin E
(Johnson’s – Baby Powders 2008).
Johnson & Johnson has been at the forefront in developing children skin
care products. They have the Johnson’s baby lotion which helps to keep
the skin smooth and soft. Johnson’s soothing naturals nourishing lotion
gives moisture to the skin for 24 hours and give relief to dry skin. Johnson’s
bedtime lotion and Johnson’s bedtime bath are products designed to calm
the baby before going to sleep (Johnson’s – Baby Skin care 2008). The
company also designs specialty baby products such as Johnson’s baby
cologne.
Meeting the needs of around one billion consumers every day is no easy
task. That is why Johnson & Johnson have invested heavily in supply chain
management. Johnson & Johnson has over 250 operating companies
worldwide. The company management approach is decentralized, but has
strong links in supply chain management to save on costs and be able to
serve the huge number of consumers of its products efficiently (Our
Management Approach 2008).
The company partners with many other individuals and companies to make
its work easier and also make sure that they concentrate on the key areas
of its business, leaving the rest to its partners. It collaborates with raw
materials providers, research scientists, pharmaceutical companies, and
business professionals attracted in searching inventive commercialization
solutions for its products. It collaborates with independent scientists and
pharmaceutical companies mainly in the product development phase
(Partners – Johnson & Johnson 2008).
The company has put a lot of emphasis in building strong operational
partnerships, especially with its supply chain networks to ensure that its
core objectives of advancing the excellence of healthcare around the
world, being profitable, respecting the environment, and supporting the
local communities are attained. Johnson & Johnson also works with
accredited transport companies and courier companies to ensure that its
products are distributed efficiently across the globe (Partners, Johnson &
Johnson 2008).
Johnson & Johnson has established an efficient, collaborative, and strong
relationship with its suppliers. It sorely relies on the suppliers for the
provision of raw materials, goods, and services needed to develop
products. The company has continued to identify small and diverse
suppliers who continue to add value and assist it to achieve its long-term
expansion objectives (Suppliers – Johnson & Johnson 2008).
Importance of Supply chain management to Johnson & Johnson
First, embracing supply chain management has helped Johnson & Johnson
to reduce its costs of doing business through narrowing in on certainty and
speed of response to the market while maximizing on added value. The
tool has helped it compete efficiently on the local arena as well as on the
global scene. Johnson & Johnson continue to rely on business professionals
abroad to market its baby products at very competitive prices (Sovereign
2008).
The business environment experienced today is more competitive than
ever. Companies, including Johnson & Johnson must function at a lower
cost to be competitive. Companies must also build their basic strong points
to differentiate themselves from their competitors. This is what Johnson &
Johnson has done. Supply chain management has enabled it to divert its
resources and focus on developing baby products – a field it has performed
optimally, while it continue to outsource tasks and processes that are less
important to the objectives of the company. This has enabled Johnson &
Johnson to survive while other companies are falling on the way (sovereign
2008).
Supply chain management has also enabled Johnson & Johnson to choose
the right partners, manpower, and resources. The company now boasts of
very strong and stable selling agents from the US to China. This has enabled
it to stay ahead of the pack. The company has also been able to specialize
in core areas and create a strong market niche for its products, thanks to
the efficient supply chain management. No company holds a larger market
share in baby products than Johnson & Johnson (Sovereign 2008).
Supply chain management has also helped Johnson & Johnson to add value
to its products. Value addition has given its products a competitive
advantage over other generalized products. This has also enabled more
innovations to be added on the company’s products to meet specific needs
of different children. The company has developed a wide range of skin
products to meet individual interests (Sovereign 2008).
Through operational flexibility, supply chain management has also enabled
Johnson & Johnson to attain faster growth rate. Through contract
manufacturing and outsourcing, Johnson & Johnson has been able to
maintain its over one billion customers who use its products every day
(Strategic Importance 2008).Overall, supply chain management has
enabled Johnson & Johnson to comprehensively manage the transition of
raw materials to finished goods. The procedure has made it possible for
the company to offer high quality products to its customers (Supply Chain
Management functions 2008).
Features that reflect common practice in Supply Chain Management
There are many features of the company operations that reflect common
practice in supply chain management. According to Supply Chain
Management (2008), some of the salient features exhibited by Johnson &
Johnson include:
• Development of a comprehensive strategic network optimization.
Johnson & Johnson is tied to some 245 companies around the world
and numerous distribution centres and facilities.
• It has developed strategic partnerships with its distributors,
suppliers, and customers. It has effective communication conduits
that are used to pass vital information and improve on its operations.
• It uses product design coordination to make sure that latest and
existing products are always incorporated optimally into the supply
string.
• Johnson & Johnson has invested heavily in information and
communication technology to maintain supply chain operations.
• The company is involved in sourcing contracts, scheduling, and
planning processes that make sure that it deals only in its key
competencies of developing beauty and health products while
leaving the rest to its partners and suppliers.
• It has developed an efficient transport strategy which has taken care
of the frequency of transporting its products, contracting, and the
routes.
• It plans on its daily production and distribution of its products, as well
as taking care of all nodes in the supply string.
Interactions with supply chain partners to improve customer outcomes
Johnson & Johnson has a healthy symbiotic relationship with its suppliers,
who supply it with raw materials, goods, and services. It carries its suppliers
importantly for without them, the company cannot progress forward.
Knowledge and expertise is applied to these raw materials brought by
suppliers to create the value added products that Johnson & Johnson
boasts of. These products are later sold to customers, after undergoing a
lot of processes ((Partners, Johnson & Johnson 2008).
As already mentioned elsewhere, Johnson & Johnson has developed an
efficient, strong, and mutual relationship with its suppliers. The company
relies on them to provide raw materials, goods and services that are
needed to develop products and service its customers at home and abroad.
The company has continued to maintain a strong supply chain because
they realize that the suppliers are the backbone of the company (Suppliers
– Johnson & Johnson 2008). They are as important as the customers. Below
I attempt to illustrate how the interaction works.
Successes and failures of Supply Chain Management
Though Johnson & Johnson experienced some difficulties in implementing
supply chain management in its operations, the successes of the tool far
outweigh the failures. First, the company has been able to reduce on costs
by making sure that it involves itself only on its key competencies. The tool
has enabled Johnson & Johnson to come up with innovative products that
continue to change the lives of consumers worldwide. Supply chain
management has also helped Johnson & Johnson to remain competitive
and remain ahead of its competitors through the production of value
added products (Bhattacharya et al. 1996, pp.39-48).
There were some teething problems that were experienced in configuring
the distribution networks. The management was unsure of the number and
locations of companies they wanted to network with. This has since been
dealt with. Distribution strategy also presented some problems, with issues
raised about whether to follow centralized, decentralized or shared
operating control system. The company settled for the decentralized
management system and it has worked wonders.
Sharing of crucial company information with other companies also proved
to be a draw back. Supply chain demand that valuable information must be
shared in the course of collaboration. Some companies used the
information to hold the Johnson & Johnson hostage. This has since been
resolved and unfaithful companies have been shown the door. The
company also experienced cash-flow troubles as it attempted to arrange
the payment methods and conditions across different entities within the
supply string (Supply Chain Management 2008).
All in all, it has helped Johnson & Johnson to revolutionalize its market
share and offer products that continue to attract millions of consumers
worldwide.
References
Bhattacharya, KA, Julian, LC, Gordon, B & Paul JK 1995, “The Structure
Conundrum in Supply Chain Management”, The International Journal of
logistics Management, vol 7, no. 1, pp. 39-48. Web.
Johnson’s – Baby Powders 2008, Johnson’s. Web.
Johnson’s – Baby Skin Care: A skin Care Routine as Easy as A, B, C 2008,
Johnson’s. Web.
Our Management Approach 2008, Johnson & Johnson. Web.
Partners- Johnson & Johnson 2008, Johnson’s. Web.
Suppliers – Johnson & Johnson 2008, Johnson’s. Web.
Supply Chain Management 2007, Supply Chain Resource
Cooperative. Web.
Supply Chain Management Functions 2008, Exforsys Inc. Web.
Strategic Importance of Supply Chain Increased 2008, Metso. Web.
Sovereign, R 2008, Importance of Supply Chain Management in Modern
Business, Ezinearticles. Web.
