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Published byStewart Cook Modified over 8 years ago
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1 1 The Health and Personal Care Logistics Conference, Inc. “Innovative Supply Chain Solutions” March 31, 2009 “ Bringing Visibility to J&J’s Supply Chain”
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2 Where is value derived from improved supply chain visibility? Areas of potential value Increased Revenue Growth Reduced Inventory Reduced Transportation Expense Reduced Distribution Expense Lower stock-outs Lower discounting Lower penalties and expenses Lower safety and cycle stock Improved demand management Improved visibility to inbound inventory Improved load/asset utilization Improved transit times Reduced expedited shipments Improved procurement activities Labor planning and scheduling Reduced compliance costs Reduced customs clearance issues Improved asset utilization “Pull vs Push”
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3 3 Sample Opportunity Analysis: Summary of shipment transit time and variability Select Lanes No. of shipments Ave. Lane Transit Time (TT) (days) No. of shipments at or over 10 day TT (days) % of shipments at or over 10 day TT Range (days) Country 18046.5162.0%4 – 40 Country 221415.67836.5%2 – 157 Country 316811.48450.0%3 – 33 Country 43820.22873.7%4 – 63 Country 5369.0411.1%7 – 14 Country 62812.21450.0%4 – 27 Country 72610.71869.2%5 – 18 Country 82014.31680.0%9 – 22 Country 91410.91757.1%5 – 17 Observation: Top (3) countries with greatest shipment volume exceed 10 day transit time 15% of the time, and account for 65% of “delayed” shipments
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4 Supply Chain Visibility Web based data repository where supply chain network stakeholders (e.g., inventory/production planners, distribution managers, etc.) can monitor in-transit shipments Near real-time access to information enables more flexible inventory management and proactive responses to dynamic market changes Alerts and key milestone event management to mitigate potential transit delays Single portal source for transportation service provider performance tracking, metric management and reporting Compliance risk mitigation via on-line information tools for stakeholders responsible for regulatory management activities What is it? Actionable Visibility to In-Transit Shipment Management
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NA Planning EMEA Planning LATAM Planning ASPAC Planning Shipping Status/Customs Status/Port Status/FDA Status Region 1 Manufacturing Region 2 Distribution Compliance Transit Time Optimization Product Protection Air/Ocean Sourcing 4PL Shipment Status/Alerts Supply Chain Visibility Solution
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6 ELP-AMS PROCESS FLOW Airline: Continental Routing: ELP-IAH-AMS, Airline: British Airways Routing: ELP-IAH-LHR-AMS & ELP-IAH- LGM-AMS Airline: Singapore Routing: ELP-DFW-AMS Back up Airlines: AA, KLM, Northwest Routing: ELP-DFW-AMS Shipper drops off at EI location. TSF- when we give it to our trucker to take it to airline in IAH, except when using BA as they pick up as part of their rate. Small shipments get consolidated to DFW outside 5 day program (under 200kg) Measurements: FRD-COB=1, COB-AFD=3.5. AFD-RLS=1 TOTAL=5.5 Origin Destination ENFRLS AFD DFW-AMS ELP-DFW IAH-LGW ELP-IAH LHR-AMS TRUCK AIR TRUCK TSF ELP-IAH IAH-AMS CONTINENTAL IAH-LHR ELP-IAH LGW-AMS British Airways Singapore FRD TNF DLV
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7 Pilot Lane – El Paso to Amsterdam ELP to AMS Lane: April 2008 Through October 2008 ORIGINAL VIEW
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8 ELP to AMS Lane: October 2008 Pilot Lane – El Paso to Amsterdam Nov 2008 VIEW
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9 Supply Chain Visibility Solution Benefits Near Real Time Freight Lane Management Performance Metrics Reduced variability for actual transit times versus planned transits Improved inventory management and related savings Enhanced transportation service providers performance and track and trace capability Optimized ports of entry Global Compliance Risk Mitigation Centralized Data Repository for Cross Sector Opportunity Analysis Actionable Incident Reporting
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10 Challenges and Opportunities Logistics providers technology capabilities vary Direct data extraction for most providers is not a simple process Leverage continued business relationship as the driver for participation and compliance THANK YOU!! QUESTIONS??
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