international visibility bringing actionable visibility to the j&j supply chain health and...

International VisibilityBringing Actionable Visibility to the J&J Supply Chain

Health and Personal Care Logistics Conference

10 Jun 09

International Visibility

– Value and Opportunity

– Deliverables

– Project Development & Considerations

– Key Actions and Steps

– JP Morgan Service Overview

– Implementation Key Components

– Key Lessons Learned

– Agenda

3

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-outsLower discountingLower penalties and expenses

Lower safety and cycle stockImproved demand managementImproved visibility to inbound inventory

Improved load/asset utilizationImproved transit timesReduced expedited shipmentsImproved procurement activities

Labor planning and schedulingReduced compliance costsReduced customs clearance issuesImproved asset utilization

“Pull vs Push”

4

Supply Chain Visibility Deliverables

Where is my shipment

Planning accuracy

In-transit decision opportunities

What is my shipment’s current status

Moving on routing plan

Customs filing

Potential risk

Actionable Visibility to In-Transit Shipment Management

5


Delay management

Pro-active response

Interested parties kept informed

Decision support

Compliance management

Support to broker partners

Additional layer of monitoring

Oversight and independent reporting on provider performance (4PL)


6


Data warehousing

Centralization for metric reporting

Routing compliance

Cost analysis


7

Supply Chain Visibility Project Development and Considerations

Business RequirementsBusiness needsSystem deliverablesLeveragable future state capabilitiesImplementation business impacts

Partner Identification/AssessmentDomestic TMS capabilitiesTechnologiesKnowledge of international transportationIn/out sourcing

8


Sourcing Event

Executive Sponsorship

Communication PlanManage expectationsFunding

9


User socializationTrainingHyper-Care

Feedback with tangible response resultsMonitoringSurveyACTIVE ENGAGEMENT


In-Transit Alert/Exception Reporting and Management

Critical Hurdles/AlertsShipment booking

PickupArrival at Origin PortConfirmed On-Board

Customs Doc SubmissionCustoms Release/Hold

FDA Release/HoldTGA Release/Hold

Arrival Destination PortDepart Destination PortInland transit Reporting

Delivery

Ready to ship

Pickup Arrival at port

Arrival at port

Confirmed on board

Customs

clearance

Depart destination

port

Delivered

Day 1 Day 3 Day 4 Day 8 Day 22Day 18Day 17Day 15

Expected Lane routing transit Segments

•3PL resources actively engage when

•Expected status update is not received

•Delay notification is received

Daily Report for Open and Delivered Shipments


Critical Data Elements and Associated Event Alerts:

Available to ship

Booking

Planned Pickup

Actual Pickup

Destination Port Planned Arrival

Destination Port Actual Arrival

Planned Delivery

Actual Delivery

Web Portal Entry Point and Available Tools


Live Track and Trace

Group or individual shipment searches

Multiple search criteria

Hyper link to individual record data

Critical reporting on regulatory holds/ releases


J.P. Morgan Service Overview

Overview – JPMorgan delivers a combination of value added services and transaction management with the support of a solid technology infrastructure.Visibility – Full Track and Trace Visibility

Online access to shipment dataIntegrated with J&J Event Management for Event Reporting

ReportingComplete set of Custom Shipment MetricsComplete set Vendor Score Card Data including:

Vendor Performance dataVendor Data Quality Compliance

*Proactive Alerting – Upcoming Service deliverable, available 4th Quarter 2009Value Added Services

Broker ReferralsFDA Release ManagementEmergency Shipment


IntegrationMessage Set – Utilization of custom message to ensure full data coverage. Critical to maintain that standard across all partners.Connectivity – Secure FTP

Partner Selection / Participation Partner selection for initial implementation is key

Selection needs to ensure critical mass of shipment data to ensure adequate visibility coveragePartners ability to deliver quality data, ensure proper process and met data requirements are critical to selection process

Implementation – Key Components


Data Flow Across partners – Process CoordinationAs Goods flow through the supply chain – It’s critical that data and process flow are managed to ensure that each partner in the process has the information necessary to send event updates to your visibility partner

Typical Time line (Vendor on Boarding Process)Initial Implementation - Is dependent on the number of Partners needed for critical mass and their time lines for integration and Process changes – Expect 4-6 Months at a minimumSubsequent Partner On-Boarding – Should be possible within 90 days

Implementation – Key Components


Vendor Selection / ParticipationEarly identification of key vendors to obtain critical data mass and ability to adapt technology and process to the requirements is key to successful Implementation

Importance of Process flow to Data QualityIt’s critical to emphasis with each vendor the importance of Process with regards to ensuring data quality. Partners positioned later in the shipment life cycle are often dependent on Data feeds or Physical document flow for the data they have report to their visibility partner. It’s important to understand the data flow from partner to partner to ensure that both technology and process ensure each partner has the required data to report correctly.

Importance of Cleary defined and Steady Visibility Reporting requirements

Data Layouts, Definition and requirements need to be fully documented and Stable to ensure time compliance by all vendors involved.Control Scope – A large initiative with many vendors and requirements – Important to lock in Scope and standardize very early in the project.

Implementation – Key Lessons Learned

ROI Assessment

Pilot Lane – Cordis El Paso to Amsterdam (Roden)

ELP to AMS Lane: April 2008 Through October 2008

Total Transit Time to Release

11%

35%42%

12%

0

5

10

15

20

25

30

35

40

45

<= 3 3 - 4 4 - 5 > 5

Days

# S

hip

men

ts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Average: 4.09 days Median: 4.13 days Standard Deviation: 1.15 daysMin: 1.83 days Max: 8.20 days

Key Milestone Breakdown in the Total Transit Time

Freight Received at Origin to Confirmed on Board97%

3% 0%

0

1020

3040

50

6070

8090

100

<= 1 1 - 2 > 2

Days

# S

hip

men

ts

0%

10%20%

30%40%

50%

60%70%

80%90%

100%

Confirmed on Board to Freight at Final Destination

9%

34%40%

17%

0

5

10

15

20

25

30

35

40

<= 2 2 - 3 3 - 4 > 4

Days

# S

hip

men

ts

0%

10%

20%30%

40%

50%

60%

70%80%

90%

100%

Freight at Final Destination to Customs Released

86%

12%

2%

0

10

20

30

40

50

60

70

80

90

<= 1 1 - 2 > 2

Days

# S

hip

men

ts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3 Subgroups Tracked:•Frt. Received at Origin to COB•COB to Frt. at Final Destination•Frt. at Final Destination to Customs Released

Several Key Learnings:1) Easy to isolate volatile portion2) You must understand Alternate Routings3) Nothing is ever as simple as it seems

• Time Stamp integrity• Process on the ground


ELP to AMS Lane: April 2008 Through October 2008


11%

35%42%

12%

0

5

10

15

20

25

30

35

40

45

<= 3 3 - 4 4 - 5 > 5

Days

# S

hip

men

ts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


ORIGINAL VIEW


0%

9%

82%

9%

0

1

2

3

4

5

6

7

8

9

10

<= 3 3 - 4 4 - 5 > 5

Days

# S

hip

men

ts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ELP to AMS Lane: October 2008



Nov 2008 VIEW

Change over timeTotal Transit Time through Customs Release

ELP to AMS - April -October 2008Average: 4.09 days Median: 4.13 days Standard Deviation: 1.15 days

Min: 1.83 days Max: 8.20 days

ELP to AMS - April 2008Average: 4.07 days Median: 3.59 days Standard Deviation: 1.48 days


ELP to AMS - October 2008Average: 4.55 days Median: 4.32 days Standard Deviation: 0.45 days


Average Time: +.5 Days in reality it is more accurately stated now Std Deviation: - 0.69 vs. Overall and – 1.03 vs. April startMin – Max Range: Down from 6. 4 days overall and 5.5 April to 1.7 October

Of Note: No Milestone Alerts on shipments MTD in November

Reapplied to new lane

• ELP to BRU started in Q4 2008 and has grown into a dominate lane for Cordis.

• Recreating the same results.

First 2 months performance without changes in the process

Marked improvements since 1/25/09 changes.

Recap of ELP to BRU Lane 2008 (Nov & Dec) Post Jan 25, 2009 Changes# of shipments 66 18Avg Shipment Time 6.38 Days 4.75 DaysMedian 6.16 Days 4.52 DaysStd Deviation 2.02 Days 0.89 DaysMinimum Shipment Time 3.03 Days 3.07 DaysMaximum Shipment Time 13.00 Days 6.14 Days% Within Max time % (6 days) 34.85% 77.78%

• We are working with Cordis to make a few more changes and then regroup to understand possible Inventory Coverage reductions for the increased predictability on the lane based on this project. Cordis will execute and report via their CIP’s

• We want to expand with Expeditors where possible and with the GTO based on their ability to include the same control features in the JPMCV project.

• We have added Vision Care lanes to the process now and will conduct a review in the next couple of weeks.


Questions?

international visibility bringing actionable visibility to the j&j supply chain health and...

Documents

international visibility

pl actionable visibility

agenda slide

delivery actual delivery

expectations funding

vs push slide

jj supply chain health

management ready