CASE QUESTIONS
1. What factors help to explain why J&J historically had as many as 12 distribution centers in Europe?
• In the past, Johnson & Johnson had as many as 12 distribution centers in Europe. This was because they focused on meeting their European customers’ needs and service expectations. The company emphasizes keeping a high level of service by giving customers one-day and two-day delivery. It also cuts down on time it takes to place an order and get a shipment to its destination.
2. What steps in the supply chain network design process discussed in this chapter would have been most relevant to the task faced by J&J in Europe?
These steps would have helped J&J make a good design for its supply chain network.
1. Business development and resource allocation: They can look at business data and determine what resources will be needed and how to get them and use them on time. This includes finding out what customers want and taking environmental factors into account. So, to grow their business, they need to hire more people, analyze data, and set goals. Once this is done, they can start building a team and figuring out their plans.
2. Network optimization software can help them reduce the number of distribution centers. They can also plan an audit of their supply chain, which wallow help them find places to cut costs.
3. Model baseline scenario
As is—simulate transportation in and out, build and simulate business scenarios, create an econometric financial model, and develop assumptions and constraints for the infrastructure.
4. Coming up with a plan
Defining the main scenario to be evaluated, simulating inventory assets by plan, representing operating, capital, and one-time expenses, developing a financial model by design, and addressing IT, tax, incentive, legal, and infrastructure issues. Develop a plan for transition and implementation, including a timeline, resources, funds, structure, limitations, partners, stakeholders, and a communication strategy.
3. Are there other factors that the network optimization study should have considered?
• Essential things to consider are how close you are to your customers and how much money it will cost you to get there from where you are right now. These are the factors that are most important to consider. These are the two aspects that constitute the most important aspects to take into consideration. Because the frameworks have already been established, every phase that is still to come may have already been planned out. The corporation has significant data about the costs associated with the land and the utilities. In addition to the information it possesses regarding the labor market and the supplier network, this is another area in which it excels. The company will only need to make modifications to the components of the logistics network that are the most significant for the company to be successful in its effort to improve its existing network.
4. This case study focuses on the shipments from distribution centers to customer locations. What factors on the supply side, or inbound-to-DC-side, would be relevant to the analysis conducted?
• When looking at the supply side, the cost of transportation is something that needs to be taken into consideration. It is essential to give some consideration to both the price and the quality of the service involved in relocating inbound. It is possible to migrate only the products that will be delivered to the DC by utilizing the services of a third-party logistics business. The incoming may have to come from a distant location, resulting in increased expenses for the organization. There should be an effort to reduce the number of distribution centers. The operation of each one costs $10 million, but if there are only 8 or 9 of them, they will only have to spend $7.6 million total for all of them. Try to create an efficient logistics network that provides timely service to clients. They must make sure that they identify the most incredible ways to improve the system and the infrastructure they now have. This covers the number of suppliers, the locations of the plants, and the places where materials are purchased.
