Strategic Management Plan - Control and Evaluation Methods for Johnson&Johnson

OPERATION/SUPPLY CHAIN MANAGEMENT Page 5

RUNNING HEAD: Operation and Supply Chain Management Page 1

Operation and Supply Chain Management

Vanessa Kinney

Rasmussen College

Author Note:

This paper is being submitted January 21, 2017, for Management Capstone B498

OPERATION/SUPPLY CHAIN MANAGEMENT

Johnson and Johnson's most important aspect of their company's supply chain planning. The product design and development is vital to the enterprise, and they always want to ensure quality products. The organization takes pride by involving themselves with the environment. The company's primary goal has been the same for the past few years. It is geared towards the improvement and implementation of social and environmental measures within their organization. To improve for the company to improve by itself Johnson and Johnson plans to push sustainability throughout the supply chain.

That will help not only their supply chain but also their supply chain partners. Johnson and Johnson aim high to form working relationships and may have had to work even harder because of the negative rep the company has been receiving since the 1980's. Many of Johnson and Johnson's products have claimed to have cancer causing ingredients that have already damaged many people's lives. Jaqueline Fox, a young woman who used Johnson and Johnson Baby Powder for years passed away from Ovarian cancer that was proven to be caused by the talc, a cancer-causing ingredient in their Baby Powder as well as other Baby products. For decades, Fox used these talc particles on her most sensitive body parts. And for decades, per the case, Johnson & Johnson knew about the cancer link but failed to warn consumers, (2016-Stacy Malkan).

"We discovered two chemicals that have been linked to cancer, formaldehyde and 1, 4 dioxane, in dozens of leading baby shampoos and bath products. People were shocked. Two years later, after we reported that Johnson & Johnson was selling formaldehyde-free versions of their baby products in Europe and other countries, the company announced they would reformulate their products worldwide to remove the ingredient and others of concern," (2016-Stacy Malkan).

Despite the fact that all this supplier continues to work with the Company to no surprise, with Johnson and Johnson being a billion-dollar corporation that has been around for many years. And since they adjusted the mixture of products to no longer contain cancer causing ingredients there should not be a reason why suppliers would not want to work with the organization. Johnson and Johnson only work with vendors who are also at a certain level of success. The goods or services must legally verifiable and meet federal standards.

The company spends annually about $30 billion on expenses and such, and therefore they can leverage their purchasing power to set sustainability expectations beyond their operations. The company's supply chain and operations department most important aspect are to ensure efficient manufacturing lines; material needs to be timed consistently and making sure there is no stall on products worldwide. Both teams may have occasions where they only focus on one manufacturing operation or the full value chain for the business, (2016-Johnson and Johnson). Either way, they make sure all machines are running and function as they are intended. They are always on the look out to upgrade and add innovations that are wanted. Partnering up with global teams is Johnson and Johnson's specialty.

References:

Malkan, S., Johnson and Johnson is just the tip of the toxic iceberg, Time.com

http://time.com/4239561/johnson-and-johnson-toxic-ingredients/

Johnson and Johnson, 2016, Supplier Management, JnJ.com

http://www.jnj.com/caring/citizenship-sustainability/strategic-framework/supply-chain-management