This is the full presentation of Koen Jaspers (partner, bluecrux) & Johan Maes (Senior Director, Johnson & Johnson) on Johnson & Johnson's global E2E Planning Transformation journey, using LightsOutPlanning. Presented at the Gartner Supply Chain Executive Conference on Monday June 17, 2019.

1. Phy•gi•tal
A Global E2E Planning Transformation
@ Janssen Pharma
[convergence of <physical> & <digital> worlds]

2. Good Morning!
Johan Maes Koen Jaspers
Sr. Director Global Planning Partner

3. 1th life sciences company in the
Gartner Supply Chain Top 25
#8

4. 170 Brands
5 ERP Systems
Pharma = Complex Business Environment
18.219 Recipes13.692 SKUs
393 Planners 800 Resources33.000 Routes
40.7 B$ Sales

5. True Global Supply Chain

6. #NoSynchronization

7. #GlobalOrchestration

8. ↑ Maturity Level
Site
Planning
End-To-End
Planning
Frictionless
Planning

9. Improve Customer
Experience
Cash Conversion
Cycle
Efficiency
Effectiveness

10. Our Planning Transformation Journey
2012 2013-2015 2016-2020 >2021
TOBE
PROCESS
INTERIM
SOLUTIONS
SUSTAINABLE
SOLUTIONS
NEXT
WAVES

11. What does
End-To-End
really mean?
TOBE
PROCESS

12. in-market → first internal production (API)
DOWNSTREAM
UPSTREAM
1
SUPPLIER API BULK FILL/PACK DELIVER SELL PATIENT

13. DOWNSTREAM
UPSTREAM
SUPPLIER API BULK FILL/PACK DELIVER SELL PATIENT
2 patient → internal → supplier
<network●of●networks>

14. 1 Global Planning Concept Design
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)

15. Scattered
IT landscape &
master data
TECHNOLOGY
SOLUTIONS

16. Scattered IT & Data Landscape

17. EXECUTION
• Orders
• Inventory
PLAN ORCHESTRATION
• End-to-end planning
• Detailed scheduling
VIRTUAL TWIN
• Actual network flows
• Supply chain parameters
‘Augmented’ Technology Framework
@ Maturity Stage 5

18. Global
mindset
& new ways of working
PEOPLE

19. 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

20. Value Creation?
Fast Tracks
• Virtual twin & planning
sensitive parameters
• 30% of full target realized upfront
• E2E visibilityused across other
business functions

21. Value Creation?
Full Solution
• 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

22. What’s next?
Node-to-node
driven
Frictionless
Planning
Network of
networks
Augmented
Analytics
Robotics

23. Want to know more?
✓ Let’s talk at boot 200
✓ Presentation shared via
bluecrux LinkedIn
(follow us!)
greetings, Johan & Koen