Project Brief

Janssen: Johnson & Johnson touches a billion lives around the world. Our mission is to transform
individual lives and fundamentally change the way diseases are managed, interpreted, and prevented. We
believe that challenging something is the best way to change it. So every day, in more than 150 countries,
we bring cutting-edge science and the most creative minds in the industry together to think differently
about diseases. We aim not only to innovate but also to empower people with the tools they need to
make informed decisions and achieve the best possible results for their health.
We are looking at a future where the world of healthcare will be challenged by informed and empowered
patients. We work for change that will improve access to medicines: the best available treatment at an
affordable price. That’s why we at Janssen strive to provide access to effective and affordable medicines
and related healthcare services to the people who need them.

Putting all these factors together, we are looking at a future where patients and their families have a new
sense of hope. Hope for a cure.

Our Credo: Johnson & Johnson is guided by the values set forth in Our Credo, created by General
Robert Wood Johnson in 1943. These principles have guided us over the years and continue to set the
tone of integrity for the entire Company. At all levels, the employees of Johnson & Johnson are committed
to the ethical principles embodied in Our Credo and these principles have been woven into the fabric of
the Company. We believe it’s a recipe for business success. Put simply, Our Credo challenges us to put the
needs and well-being of the people we serve first.

Background of the Project:

Janssen is dedicated to addressing and solving some of the most important unmet medical needs of our
time. In India, the therapy areas where Janssen is present are oncology, immunology, neurosciences &
analgesia, dermatology, infectious diseases and metabolic diseases. Driven by a strong commitment to
the health and well-being of patients, Janssen brings innovative products, services and solutions to people
in India and throughout the world.
One of our growing channels to reach patients in India is through Government & Public Market
Accounts. These include accounts like Indian Army, Employees’ State Insurance , CGHS etc. This business
contributes to around ~12% of our total business and is growing at a high CAGR of around 30%. The
distribution model for supplies to public market around is both direct (supply directly to accounts) and
indirect (through Distributors). However, the supplies are to be made in accordance to tender conditions
of that account like stamping text on the products, days of supply, shelf life of the product etc. These
could vary from account to account, thereby adding to the supply chain complexity and increasing lead
times for our supplies. Procurement Policy changes, Budget allocations & Political Environment further
add to uncertainty of orders

OPPORTUNITY AREA:

Government business is key growth area for Janssen, it has its own complexities of poor forecast accuracy
(~30-40%), low order to supply lead time (~ 45 days) and 2% penalty every week post 45 days until supply,
shelf-life criteria of min 66% shelf life remaining for product at the time of billing and product stamping
requirement (Govt supply Not for Sale etc.). Complexity increases because almost 80% of our government
business billing value comes from imported products which have lead time of minimum 90-120 days. Also
some products require cooling temperature of 8 degree Celsius till last mile supply to maintain its efficacy.

To cater to the highly growing business, there is a need to optimize the planning & warehouse operations
for key account supplies (KAM - government tender) to supply products on time at optimal distribution
cost while complying to all tender conditions. The relabeling activity is done at a third party site and there
is an opportunity area to optimize cost and crunch lead times.

Project Objective:

• Understand the Janssen public market business model & supply chain network
• Map the As-is End to End process of KAM business & identify pain & opportunity areas
• Develop future roadmap on addressing these areas to improve lead times & optimize cost for
warehousing operations

Project deliverables:

• Benchmark the warehouse & logistics operations for KAM supplies with other pharmaceutical
companies to identify best practices
• Benchmark with other pharma companies for last mile cold chain product distribution
• Deliver effective and implementable roadmap for cost & lead time improvements
• Recommendation on improving EtoE planning process (Forecasting, Import Planning &
Distribution)
• Final project deck with approach, analysis and future recommendations

NOTES / additional info:

Johnson & Johnson India: http://www.jnjindia.com/

OUR CREDO: http://www.jnj.com/connect/about-jnj/jnj-credo/

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