{"id":21250,"date":"2017-11-11T15:32:26","date_gmt":"2017-11-11T20:32:26","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/"},"modified":"2017-11-11T15:32:26","modified_gmt":"2017-11-11T20:32:26","slug":"the-best-supply-chain-in-the-world","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/","title":{"rendered":"The Best Supply Chain in The World"},"content":{"rendered":"

The Commitment<\/strong><\/p>\n

In 2014, with almost half of its employees (more than 50,000) working in supply chain, more than 15,000 customer orders per day and around 350,000 customers globally, Johnson & Johnson committed to build the best end-to-end supply chain in the world [1]. Combining internet of things (IoT) sensors, cloud computing and advanced analytics, J&J has connected the entire supply chain to achieve this challenging goal. \u201cWith IoT, we have the opportunity to bring all that data together in one place and then apply some very sophisticated analytics like machine learning and predictive modeling to better understand what is likely to happen to you as a patient\u201d, explains Stuart McGuigan, J&J\u2019s CIO [2]. Regulatory matters have also influenced J&J\u2019s supply chain digitalization efforts. In 2013, Congress passed the Drug Supply Chain Security Act (DSCSA), which requires pharmaceutical companies to implement end-to-end traceability of prescription drugs distributed in the United States by 2023 [3], fueling the implementation of traceability projects.<\/p>\n

https:\/\/youtu.be\/wokCJhGyuLM<\/a><\/p>\n

Source: [1]<\/h5>\n

Kathryn Wengel, worldwide vice-president of J&J Supply Chain (JJSC), highlights three main areas where digitalization and, specifically, IoT technologies have had an impact on JJSC: End-to-end supply chain customer type technology (traceability, on-shelf availability and real-time data); Core Product Technologies; Operational Technologies (use of IoT in manufacturing plants to make better real-time decisions) [4].<\/p>\n

End-to-end supply chain technologies<\/strong><\/p>\n

JJSC has been on the forefront of developing new technologies to ensure end-to-end product traceability. In October 2014, less than a year after the DSCSA was passed, J&J piloted a project to fully serialize their products and dive into the changes in systems that would be necessary to fully comply with the act [5]. \u201cIt is still rare to be able to fully trace every element of a product from origin through to individual patient outcomes via digital health records and real-world evidence\u201d says Wengel, \u201cThe rapid advancements in computing, Big Data and technology are enabling rapid innovation […] We\u2019re not just making products anymore.\u00a0 We also make a product\u2019s digital twin.\u00a0 This twin is the basis for how we collaborate across the healthcare supply chain\u201d [6]. IoT has enabled J&J to trace products from their raw material stages all the way to the end-customer. Real-time data provided by IoT sensors and monitors embedded in vaccines, for example, can assure they remain frozen when shipped to sub-Saharan Africa [7].<\/p>\n

Core Product Technologies<\/strong><\/p>\n

J&J is also investing in core product IoT technologies to allow real-time diagnosis and treatments. Research and development of new self-correcting contact lenses and other platforms that provide real-time data on the health of a patient\u2019s eye is one of the areas where J&J is applying IoT to improve patients\u2019 treatments [7].<\/p>\n

Operational Technologies<\/strong><\/p>\n

Internet of Things has also enabled J&J to change its manufacturing processes. IoT in-line sensor technology changed the way they manufactured Prezista, an HIV medication, and made J&J the first pharmaceutical company to win FDA approval to shift a product from batch to continuous manufacturing. Before the technology was introduced, the drug was produced in batches and production had to be stopped at various steps when samples were sent to a laboratory to be tested. IoT in-line sensors embedded in the equipment have eliminated these steps by performing tests online in real-time. \u201cOur use of IoT-enabled continuous manufacturing opens up a much greater world of flexibility, a dramatic reduction in cycle time, and allows us to use our people resources more efficiently\u201d explains Wengel [7].<\/p>\n

Current Performance and Future Obstacles<\/strong><\/p>\n

On May 2017, Gartner released its annual Top 25 Supply Chain Index, ranking Johnson & Johnson as the 13th<\/sup> best supply chain worldwide, climbing up 8 spots from its 2016 ranking and establishing J&J as the only healthcare supply chain on the list [8] [9]. However, to become the best supply chain in the world in future years, J&J will have to outperform other giants such as Unilever (1st<\/sup>) and Inditex (3rd<\/sup>). One of the main obstacles to achieve such goal revolves around cybersecurity.<\/p>\n

\"\"<\/a>
IoT’s Challenges and Opportunities in 2017 – Source: [10]<\/figcaption><\/figure>In a recent study conducted by Gartner, 35% of respondents ranked security concerns as one of the greatest barriers to IoT success [11]. This is specifically important in the healthcare landscape, where hacks or security breaches could have significant impact on patients\u2019 lives. Recently, Johnson & Johnson announced a vulnerability in one of their insulin pumps [12]. Using sophisticated equipment and in proximity to the pump, Jay Radcliffe, a cyber security researcher, discovered that a remote hacker could access it and trigger unauthorized insulin injections [13], which could cause hypoglycemia and, in extreme cases, be life threatening.<\/p>\n

Can J&J outperform other customer goods and textile supply chains and become the best supply chain in the world? What about security concerns? Can they overcome this obstacle in the healthcare landscape and provide safe, versatile and connected medical devices?<\/p>\n

 <\/p>\n

(795 Words)<\/p>\n

[1] Johnson & Johnson, “J&J 2014 Year in Review: Building The World’s Best Supply Chain” [Video], You Tube, March 23, 2015,\u00a0https:\/\/youtu.be\/wokCJhGyuLM<\/a> , accessed November 2017.<\/p>\n

[2] TechRepublic, “IoT World 2017: Johnson & Johnson on how smart technology is making people healthier” [Video Interview], May 24, 2017,\u00a0https:\/\/www.techrepublic.com\/videos\/iot-world-2017-johnson-johnson-on-how-smart-technology-is-making-people-healthier\/<\/a> , accessed November 2017.<\/p>\n

[3] FDA, “Drug and Supply Chain Security Act”, October 13, 2017, https:\/\/www.fda.gov\/Drugs\/DrugSafety\/DrugIntegrityandSupplyChainSecurity\/DrugSupplyChainSecurityAct\/default.htm<\/a> , accessed November 2017.<\/p>\n

[4] Dave Blanchard, “Mentoring and Technology Offer a Healthy Outlook for J&J”, Industry Week, January 02, 2017,\u00a0http:\/\/www.industryweek.com\/manufacturing-leader-week\/mentoring-and-technology-offer-healthy-outlook-jj<\/a> , accessed November 2017.<\/p>\n

[5] SupplyChainBrain, “How Drug Maker Secures Integrity of Its Pharma Supply Chain”, Supply Chain Brain, December 22, 2016,\u00a0http:\/\/www.supplychainbrain.com\/single-article-page\/article\/how-drug-maker-secures-integrity-of-its-pharma-supply-chain\/<\/a>\u00a0, accessed November 2017.<\/p>\n

[6] Kathryn Wengel, “J&J: Embrace change to transform healthcare supply chains”, Supply Chain Dive, June 15, 2017,\u00a0https:\/\/www.supplychaindive.com\/news\/JNJ-healthcare-supply-chain-innovation-change-culture\/445106\/<\/a> ,\u00a0accessed November 2017.<\/p>\n

[7] Dave Blanchard, “The Healing Power of The IoT”, Industry Week, September 20, 2016,\u00a0http:\/\/www.industryweek.com\/supply-chain\/healing-power-iot<\/a> , accessed November 2017.<\/p>\n

[8] Johnson & Johnson, “Johnson & Johnson Moves Up Eight Spots on The Gartner To 25 Supply Chain Index”, Company Website, May 25, 2017,\u00a0https:\/\/www.jnj.com\/latest-news\/johnson-and-johnson-moves-up-eight-spots-on-gartner-top-25-supply-chain-index-2017<\/a>\u00a0, accessed November 2017.<\/p>\n

[9] Aronow, S., Nilles, K. and Romano, J., “The Gartner Supply Chain Top 25 for 2017”, Gartner Inc., May 24, 2017.<\/p>\n

[10] Mark Hung, “IoT’s Challenges and Opportunities in 2017: A Gartner Trend Insight Report”, Gartner Inc., April 5, 2017.<\/p>\n

[11] Mishra, DD, Perkins, E. and Stoudt-Hansen, S., “Address Cybersecurity Challenges Proactively to Ensure Success With Outsourced IoT Initiatives”, Gartner Inc., February 17, 2017.<\/p>\n

[12] Jim Finkle, “J&J warns diabetic patient: Insulin pump vulnerable to hacking”, Reuters, October 04, 2016,\u00a0http:\/\/www.reuters.com\/article\/us-johnson-johnson-cyber-insulin-pumps-e\/jj-warns-diabetic-patients-insulin-pump-vulnerable-to-hacking-idUSKCN12411L<\/a> , accessed November 2017.<\/p>\n

[13] Tod Bearsley, “R7-2016-07: Multiple Vulnerabilities in Animas One Touch Ping Insulin Pump”, Rapid7, Company Blog, October 04, 2016,\u00a0https:\/\/blog.rapid7.com\/2016\/10\/04\/r7-2016-07-multiple-vulnerabilities-in-animas-onetouch-ping-insulin-pump\/<\/a> , accessed November 2017.<\/p>\n","protected":false},"excerpt":{"rendered":"

Johnson & Johnson has committed to become the best supply chain in the world. Will digitalization and IoT help them achieve this challenging objective?<\/p>\n","protected":false},"author":9747,"featured_media":21251,"comment_status":"open","ping_status":"closed","template":"","categories":[41,1503,1710,479,17,3246],"class_list":["post-21250","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-healthcare","category-iot","category-johnson-johnson","category-medical-devices","category-supply-chain","category-supply-chain-visibility","hck-taxonomy-organization-johnson-johnson","hck-taxonomy-industry-health","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nThe Best Supply Chain in The World - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Best Supply Chain in The World - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Johnson & Johnson has committed to become the best supply chain in the world. Will digitalization and IoT help them achieve this challenging objective?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"364\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/\",\"name\":\"The Best Supply Chain in The World - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg\",\"datePublished\":\"2017-11-11T20:32:26+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/wp-content\\\/uploads\\\/sites\\\/4\\\/2017\\\/11\\\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg\",\"width\":770,\"height\":364},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/the-best-supply-chain-in-the-world\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Best Supply Chain in The World\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Best Supply Chain in The World - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/","og_locale":"en_US","og_type":"article","og_title":"The Best Supply Chain in The World - Technology and Operations Management","og_description":"Johnson & Johnson has committed to become the best supply chain in the world. Will digitalization and IoT help them achieve this challenging objective?","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/","og_site_name":"Technology and Operations Management","og_image":[{"width":770,"height":364,"url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/","name":"The Best Supply Chain in The World - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg","datePublished":"2017-11-11T20:32:26+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/4cd7d41d592d6c9f5b626e8bf156a15a.jpg","width":770,"height":364},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/the-best-supply-chain-in-the-world\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"The Best Supply Chain in The World"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/21250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/9747"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=21250"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/21250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media\/21251"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=21250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=21250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}