What is J&J’s philosophy on SRM ? J&J are broadly based in health care. Our focu
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Question
What is J&J’s philosophy on SRM ?
J&J are broadly based in health care. Our focus is on managing for the long term. We operate under a decentralized management approach. They do all this through a unique culture that values and fosters the development of people.
What are the requirements for becoming a supplier partner with J&J ?
In order to register and maintain your information in J&J’s Supplier Registration Tool, you need a computer and access to the internet. For best performance, it is recommended that you use Internet Explorer 5.0 or higher. You will also need the information and supporting documentation that you need to provide to J&J. This includes the following:
•General Company Information including Comp any Name, Address, Fed Tax ID, Contact Information, Internet Address, Former Company Name(s) Used, Dun and Bradstreet Number, Parent Company Name and Fed Tax ID, Currently Doing Business With J&J (Yes/No), Diverse Supplier (Yes/No), Headquarters Address, Executive and Primary Contact Information
•Year Established, Number of Employees, Legal Structure, Products and Services provided, SIC and NAICS codes, Geographic Service Area
•Financial Information (Last 3 years Sales figures)
•Diversity Information (only applicable if a diverse company) including Diversity Classification, Diversity Group/Ethnicity, % of Diverse Ownership, % Ownership by Gender
• 3rd Party Diversity Certification documentation including Upload of Diversity Certifications
•Reference Information: One business reference is required. A total of three references can be recorded in the system.
Explanation / Answer
QUESTIONS:
What is J&J’s philosophy on SRM?
What are the requirements for becoming a supplier partner with J&J?
What role do suppliers play in achieving the mission of J&J?
How effective are J&J’s SRM practices?
BACKGROUND
Efficient and effective Supply Chain Management (SCM) is integral to business success. SCM encompasses the end-to-end business processes necessary for a company to produce goods for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes is critical. Although there is no single solution to implementing SCM, most companies have a strategy or approach for managing the various components of SCM.
Perhaps the most important and challenging aspect of SCM is choosing and developing working relationships with suppliers of parts and materials needed to produce a final product. Organizations must carefully choose and manage their suppliers to avoid any number of risks associated with failure to deliver by a supplier. One way to mitigate these risks is for an organization to engage and incentivize supply chain partners through Supplier Relationship Management (SRM) practices. SRM guides the expectations and relationships among the parties and provides benefits for both sides.
Today’s complex, global business environment requires more than just agreements with suppliers. The sources of parts and materials are no longer always procured locally. Supplier sourcing is more likely to be conducted globally, with the potential to impact people, communities, and cultures in ways that must be considered and addressed responsibly, legally, and ethically.
SCENARIO
Johnson & Johnson (J&J) is a large, multi-national company with more than 125,000 employees worldwide. In its Credo, J&J professes responsible and ethical treatment of all its stakeholders. To that end, J&J commits to the following: forming strong relationships with suppliers; including suppliers as stakeholders in innovation; supporting diversity among suppliers; and providing suppliers the opportunity to make a fair profit. In exchange, suppliers must comply with J&J’s Code of Conduct and Responsibility Standards for Suppliers.
You serve as Chief Procurement Manager for the Medical Devices Products at J&J, a position that pays $189,000 annually. You have been with the company for 11 years, and your team works closely with several functions in the organization, including Finance, Marketing, IT, and R&D. One key aspect of your job is to identify reputable supply chain partners that can move product to healthcare providers around the world. In your leadership role, you find it important to follow the J&J Credo, especially the part stating the following: “Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.”
Allied Distributors, Inc. (AD) has approached your office about becoming a worldwide distributor for medical devices. These products are delivered to healthcare professionals in fields like orthopedics, neurology, cardiology, minimally invasive surgery, wound management, and women’s health. The timing of this proposal is right because the J&J leadership team has implemented a strategic plan to improve patient outcomes and expand market share by introducing innovative products. Your job is to engage the procurement process to introduce a new supplier for medical devices.
Introducing a new supplier into the supply chain at J&J requires a good understanding of its supply chain practices and approach to SRM. The resources below provide more detail information in these areas.
J&J Homepage
https://www.jnj.com/
J&J Product Information – Medical Devices
https://www.jnj.com/healthcare-products/medical-devices
J&J Credo
https://www.jnj.com/about-jnj/jnj-credo
J&J Code of Conduct
https://jnj.brightspotcdn.com/33/7c/6d77ff4b4adb8644d10f298d819e/code-of-conduct.pdf
J&J Responsibility Standards for Suppliers
https://www.jnj.com/about-jnj/company-statements/responsibility-standards-for-suppliers
J&J 2015 Citizenship & Sustainability Report
https://jnj.brightspotcdn.com/25/f7/b3172c104796b553e9ea35bac1d0/2015-jnj-citizenship-sustainability-report.pdf
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