What is operations in Johnson&Johnson?


Johnson & Johnson has operated on the belief that it has a shared duty to its customers, workers, stockholders, and the communities it serves since its founding in 1886. Johnson & Johnson realised that in order to compete in a highly competitive industry, it needed to meet customer demand swiftly and provide a best-in-class customer experience while staying within its inventory targets. The company wanted to modernise its demand planning function so that it could better estimate customer needs, enhance forecast accuracy, and optimise its external manufacturing activities to keep stock levels at the right level.

  • To improve the forecast accuracy of its baseline, a central demand planning (CDP) hub comprising of demand planning and data science professionals was established. The CDP team used forecast value add and exception-based planning to conduct high-quality, closed-loop planning assessments.
  • A demand planning workflow based on more than 25 algorithms to expand the number of statistical models available and build a baseline review pack, allowing the CDP team and local demand planning teams to work together more effectively.
  • A three-tier demand planning operational model to provide attention and expertise to the demand planning process in multiple dimensions.
  • A transformation office to focus on continuous improvement, develop and deploy transformation projects, and ensure that Johnson & Johnson benefits from innovation when the project is completed.

This technique made it possible to draw from a bigger data pool, resulting in a more precise baseline forecast. Johnson & Johnson’s master data was also upgraded, resulting in a more realistic set of expectations for the company’s manufacturing and delivery capabilities.