Client Carousel from our 'phygital' event (24/10/2019) with Anneleen Tronquo (partner bluecrux) & Jasper Wouters (Project Manager OMP) on Johnson & Johnson's journey towards a global E2E planning transformation.

1. LET’S GET
PHYGITAL
WITH

2. Global E2E Planning
Transformation:
How J&J got ‘Phygital’

3. Nice to meet you!
Anneleen Tronquo
Partner
Jasper Wouters
Project Lead

4. Today we talk about…
1
2
3
About Johnson & Johnson
TO BE – process: what does End-to-End really mean?
Technology as an enabler
4 People: a global mindset & new ways of working
5 What’s next?

5. About
1 Johnson & Johnson

6. 1st life sciences company in the
Gartner Supply Chain Top 25
#8

7. 170 Brands
5 ERP Systems
18.219 Recipes13.692 SKUs
393 Planners 800 Resources33.000 Routes
40.7 B$ Sales
PHARMA: COMPLEX BUSINESS ENVIRONMENT

8. PHARMA: COMPLEX BUSINESS ENVIRONMENT
API BULK FILL/PACK
ERP 1 ERP 2 ERP 3

9. TRUE GLOBAL SUPPLY CHAIN

10. #NOSYNCHRONISATION

11. #GLOBALORCHESTRATION

12. Site
Planning
End-To-End
Planning
Frictionless
Planning
MATURITY LEVEL

13. Improve Customer
Experience
Cash
Conversion
Cycle
Efficiency
Effectiveness

14. 2012 2013-2015 2016-2020 >2021
TOBE
PROCESS
INTERIM
SOLUTIONS
SUSTAINABLE
SOLUTIONS
NEXT
WAVES
PLANNING TRANSFORMATION JOURNEY

15. TO BE process:
2 What does End-to-End really
mean?

16. DOWNSTREAM
UPSTREAM
1
SUPPLIER API BULK FILL/PACK DELIVER SELL PATIENT
IN-MARKET → FIRST INTERNAL PRODUCTION (API)

17. DOWNSTREAM
UPSTREAM
SUPPLIER API BULK FILL/PACK DELIVER SELL PATIENT
<network●of●networks>
2 PATIENT → INTERNAL → SUPPLIER

18. DP-20 Generate base demand – Process decomposition
DEMAND PLANNING
D
W
M
Q
A
Daily
Weekly
Monthly
Quarterly
Annually
Level4SummaryLevel5Level3
Supply Network PlanningDemand Planning Production Planning Inventory Management E2E Planning S&OP Planning
DP-10
Define demand planning strategy
DP-20
Generate base demand
DP-30
Generate event demand
DP-40
Validate demand plan
DP-20-70
Release base demand
DP-20-60
Translate base demand into
value
DP-20-50
Validate base demand
DP-20-40
Translate to weekly
forecast granularity for
first 3 months
DP-20-10
Compile source data
M M M M M
▪ Generated base demand (at
lowest demand forecasting
unit) feeds into event demand
planning
▪ Valorize the base demand▪ Generate and review
exception alerts
▪ Check results of analytical
models
▪ Review any exceptions that
are flagged based on the
exception parameters
▪ Translate monthly base
demand forecast to
weekly granularity for
first 3 months
DP-20-30
Generate forecast
M
▪ Generate forecast based on
best analytical model at
optimal planning hierarchy
▪ Recalibration of statistical
model based on DP-20-50
DP-20-20
Update source data based on
event classification
M
▪ Exclude data points / periods
that misrepresent base
demand trends
→ Automatic outlier detection
with OMP
▪ Classify historical demand into
“event history” and “base
history”
▪ Map demand history for
product swaps or
rationalization
▪ Collect historical sales data
▪ Compile other objective inputs
where applicable (e.g.,
customer/patient data)
▪ Where applicable, capture trade
partners demand
▪ Check availability of master data
(e.g., price for value translation)
1 GLOBAL PLANNING CONCEPT DESIGN

19. Technology
solutions:3 Technology as an enabler

20. FROM A SCATTERED IT & DATA LANDSCAPE

21. EXECUTION
• Orders
• Inventory
PLAN ORCHESTRATION
• End-to-end planning
• Detailed scheduling
VIRTUAL TWIN
• Actual network flows
• Supply chain parameters
TO AN ‘AUGMENTED’ TECHNOLOGY FRAMEWORK
@ MATURITY STAGE 5

22. END-TO-END

23. FULL SCOPE
MANAGE
ALL
HORIZONS STAGES FUNCTIONS ROLES
UNIFIED

24. IN-DEPTH
Multi-sourcing (internal & external)
Batch production
Quota & regulatory constraints
Shelf-life
…
MANAGE
ALL
REALITY-BASED

25. PLANNING & SCHEDULING
ORDER MANAGEMENT
DEMAND,
PLANNING,
FORECASTING &
SENSINGINVENTORY
OPTIMIZATION
SALES & OPERATIONS PLANNING
HORIZONS
EXECUTION
S O U R C E | M A K E | D E L I V E R | D E M A N D
PROCESS MAP

26. WORKFLOW MANAGEMENT
Performance analysis
/
REALITY-BASES SCENARIOS
In depth constraint modeling
OPTIMIZE & RESPOND
Right level of analytics
E2E VISIBILITY
Harmonized integration
DATA SENSING
Supply chain
parameters
KEY ENABLERS
UNIFIED PLANNING
All horizons, stages & functions

27. People:
4 A global mindset & new
ways of working

28. LongerMPS
horizons
↑ agility with ↓
frozen period
Switch off XLS
From site to E2E brand
focus
Follow 1global planning
cadence
↑ E2E collaboration
1
2
3
4
5
6

29. VALUE CREATION?
FAST TRACKS
Virtual twin & planning sensitive
parameters
30% of full target realized upfront
E2E visibilityused across other
business functions

30. Inventory: $ 200+ MM
MAPEimprovement: $ 7 MM
Automation: $ 3 MM
SLOB: $ 12 MM
EXECUTION
• Orders
• Inventory
PLAN ORCHESTRATION
• End-to-end planning
• Detailed scheduling
VIRTUAL TWIN
• Actual network flows
• Supply chain parameters
VALUE CREATION?
FULL SOLUTION

31. What’s
next?
5

32. Node-to-node driven
Frictionless
Planning
Network of
networks
Augmented
Analytics
Robotics
WHAT’S NEXT?

33. Thank you!
Jasper Wouters Anneleen Tronquo
PartnerProject Lead

34. LET’S GET
PHYGITAL
WITH