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Integration of Temperature Control into the Supply Chain

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1 Integration of Temperature Control into the Supply Chain
Glenn Girardi | September 19, 2016

2 “This presentation is for informational purposes only and should not be relied upon without consultation with the appropriate subject matter experts in your organization. The views expressed are not necessarily those of the Johnson & Johnson Family of Companies.”

3 Key Steps to Integrating Products
Identify current shipping requirements for each product or product group Gather lane mapping data (map, purchase, etc.) Identify gaps between product requirements and lane mapping data Legacy products - determine gap closure plan Additional stability studies Shipping solutions New products: lane mapping data is a key input to the New Product Development (NPD) process when establishing stability testing

4 Lane Mapping Approach Lane mapping objective: characterize shipping lanes in order to understand what temperatures the product will experience in transit Lane mapping results: enables business to identify which lanes require protection and make risk-based decisions on how to address impacted products

5 Lane Mapping Approach (cont.) Implementing a Lane Mapping Program
Survey your organization to discover any existing studies that may have been completed in the past Develop a strategy to identify and procure data from suppliers Address gaps in data and develop a strategy : Identify what data needs to be gathered Create a plan to gather the data (map/purchase) Determine how to use the data to make risk-based decisions on protecting products In addition, the lane mapping strategy must be adaptable and change as new data is gathered and regulations continue to become clearer.

6 Lane Mapping Deliverables
Gather complete lane mapping data set Provide lane characterization and reports Establish a structured segmentation and prioritization of global lanes Establish a useable lane mapping data repository Analyze data to provide information needed for product decisions on temperature control

7 Lane Mapping Team Structure
Project leads QA Distribution Site Ops (One per origin site) Study execution team Customer Service Receiving site team Data logger provider 3PL (if required) Lane mapping teams will need to be cross functional  need to socialize and get buy in from various functions All members have tasks to complete in preparation phase of lane mapping Team size and complexity will multiply based on the number of origin and destination sites  Need project management office structure to support this complexity

8 Global Lane Mapping Strategy Map
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

9 Three Ways to Gather Lane Mapping Data and Address Current Gaps
Purpose Advantages Risks Potentially very cost effective Save time by not running studies Limited data available Must meet data gathering requirements Procure data Procure data from suppliers, carriers, competitors or other industry partners Monitor active shipments Gather temperature data on shipments with product Have control over what lanes are mapped and how the data is presented No additional shipments required Approx. one year to run full study Run dummy shipments Gather temperature data on shipments without product Have control over what lanes are mapped and how the data is presented Increased cost to run empty shipments Approx. one year to run full study

10 Output of Lane Mapping Data Analysis Must Meet Various Business Needs
Short term Create shipping profiles for passive solution qualification Characterize lanes to allow business units to make risk-based decisions on how and to what extent there are temperature control requirements for each product Used data as an input to establish thresholds for stability data stability testing Long term Provide cost / time / temperature information input into the NPD process (stability testing requirements) Possible network optimization

11 Shipping Requirements
Must Haves Agreement on reports and data analysis Determination of gaps and using data to close gaps Lane Mapping Data Shipping Requirements Overall Profiles

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13 Back-up Slides

14 Lane Mapping vs. Route Verification…
Characterizes the temperature conditions products experience during transportation by mode including temperature, time, frequency and duration Dependent on carrier, mode, ports of call, etc. During collection of data multiple service providers used Cost / time / temperature information input into the NPD process Route Verification: Confirms the transportation route products travel Varies by transport mode and confirms key points where product is at rest Includes verification of documents, customs clearance, ports of call, etc. Verifies temp control service provider meets the stated requirements Review of route is by service provider


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