SOURCE: marcus evans

marcus evans

November 11, 2015 11:25 ET

Developing a Risk-Averse Supply Chain Strategy Through Enhanced Visibility

Interview With Joanne M. Jaeger, PE, CIH, Sr. Director, Enterprise Sourcing Risk Management Center of Excellence, Johnson & Johnson

ORLANDO, FL--(Marketwired - November 11, 2015) - Today's highly variable and often perilous business environment has led to a considerable focus on supply chain transformation and the vigilant management of third party vendors. As Fortune 500 companies continue to look for ways to increase efficiency as a means to netting more ROI on their products and services, outsourcing has become the norm for functions within the supply chain.

Joanne M. Jaeger, Sr. Director, Enterprise Sourcing Risk Management Center of Excellence at Johnson & Johnson, recently spoke with marcus evans about topics to be discussed at the upcoming Supply Chain Risk Management Conference:

What different approaches have you used to increase visibility across the supply chain? What techniques worked best?

JJ: There is no all-encompassing solution to increased visibility across the supply chain with globalization and new markets, just-in-time inventory, and consolidation of suppliers, and there is no substitution for doing the legwork to get the information. It's helpful to have a single source of truth, with all the information in a common location, ideally including multi-tier supplier relationships, "where used" data, and performance metrics, including financial health, quality, reliability, and EH&S.

Why is it important to prioritize a comprehensive risk profile for suppliers?

JJ: Before you can prioritize, you have to have alignment on your objectives. At Johnson & Johnson, that's clear. The values that guide our decision making are spelled out in Our Credo, which challenges us to put the needs and well-being of those we serve first. As such, we prioritize on those products that could have a potential health impact for our customers (due to limited availability of an alternative) in the event of supply disruption.

What are the challenges to controlling risk when working with multi-tier suppliers?

JJ: The biggest challenges to controlling risk when working with multi-tier suppliers are visibility and influence. Details on the suppliers to YOUR suppliers are not always readily available, and once you get visibility to that supply chain, the ability to get information from the sub-tier suppliers, and to influence improvement in their resiliency (i.e. suggest that they purchase critical spare parts to avoid supply disruption) can be a challenge.

What advantages come from analyzing your supply chain strategy from the outside looking in?

JJ: Supply chain is a multi-enterprise endeavor, so you can't limit yourself to looking within your own four walls. You need an outside-in approach to get global supply chain visibility and understand your potential exposure due to impacts in your multi-tier supplier base, carriers and distribution centers, and shipping lanes.

How do you maintain successful and clear cross-team collaboration for risk management purposes?

JJ: Once again, Our Credo helps us remember what matters most. In a decentralized, matrixed environment, these common values drive alignment and collaboration to deliver the best possible results for our customers. In sourcing risk management, it is understood that our first priority is to ensure we have the right supply of materials around the world to make high-quality products consistently. Shared objectives ensure successful cross-team collaboration.

Joanne Jaeger is the Sr. Director, Enterprise Sourcing Risk Management CoE for Johnson & Johnson. In this role, she is responsible for proactively anticipating, identifying, monitoring, and mitigating external risks related to suppliers and ensuring proactive risk management through deployment of Sourcing Risk Center of Excellence.

Before joining Johnson & Johnson, Joanne spent over 20 years in environmental and engineering consulting, with diverse experience in strategic environmental management and engineering, regulatory affairs, government relations, and organizational leadership.

Joanne is a founding Board Member of STOMP THE MONSTER™, a non-profit that helps cancer patients and their families.

Join Joanne at the Supply Chain Risk Management Conference, January 20-21, 2016 in Orlando, FL. For more information, check out the conference agenda here or please contact Tyler Kelch, Digital Marketing Manager, marcus evans at 312.894.6310 or Tylerke@marcusevansch.com.

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