Jeff Carrel

1
Jeff Carrel
Director Of Customer Logistics Johnson Johnson

2
Profile

• Worlds most comprehensive broadly-based
  manufacturer of health care products
• 98,500 employees - 194 decentralized operating
  companies
• Selling products in 175 countries (42 of sales
  outside of US) - facilities in 51 countries 2001
  33B
• Sales Logistics Company - 780 FTE
• 4.1B Gross Sales - 2700 Sold Tos, 48850 Ship
  Tos
• 3 DCs
• 5 Operating Companies

3
What makes forSuccessful Collaboration?
Industry Participation
Interpersonal Relationships
Value Creation
Quality Supply Chain Systems
Training
IT Enablement
Scorecard
4
CPFR Technology Deployment
E3TRIM
Rite Aid Team

• Purchase Orders
• Demand Projections

• Demand Forecasting
• Seasonal Planning
• Promotional Visibility
• Order Review Release
• Exception Resolution
• Assess Order Policy
• Service Level Analysis
• Scorecard Benchmarking

JJ Team
Manufacturer
5
Partnership Benefits

• Greater trust
• Improved visibility
• Focused on same goals
• Quicker implementation of new ideas
• Stepping stone to new opportunities
• Improved consumer satisfaction

6
Profile

• Recognized National Leader Over 14 Billion in
  revenue
• Approximately 3800 stores in 30 states
• 8 regional distribution centers
• Employs over 80,000 associates
• Industry leader in private label offerings

7
Profile

• Global leader that helps multi-channel companies
  manage their mission critical operations
• 1200 Retail and 2600 Manufacturing clients
• 10,000 Supply chain professionals educated
  through
• Leader in Collaborative Commerce
• Over 1,100 associates worldwide
• 32 offices in major cities throughout North
  America, South America, Europe, Asia and
  Australia.

8
Business Rationale

• Rite Aid Goal Drive more profit through
  Implementation of CPFR
• JJ Goal Drive incremental sales and
  efficiencies Minimize out of stocks.
• Idea Leverage manufacturers unique product and
  logistics insights
• Approach requirements
• Common goals, language, and metrics
• Real time access to information with no barriers
• Regular interaction between parties
• Co-ordinate logistics/operations/transportation
  strategies
• Maintain E3TRIM profit tools

9
CollaborativeInitiative

• Scope
• 8 Rite Aid DCs
• 600 JJ SKUs
• Focus
• Improve service
• Reduce OOS s
• Increase DC to Store Fill Rate
• Maintain WOS
• Resources
• 1 JJ Planner
• System
• E3TRIM
• E3Marketplace

Initial Planning Session between Rite Aid and
Johnson Johnson (February 22, 2001)
First Rite Aid Distribution Center is Brought
into Program (March 2001)
Less than 4 months to implement 600 SKUs at 8
Distribution Centers
All Johnson Johnson SKUs and All Rite Aid
Distribution Centers in Production (June 1, 2001)
10
Partnership Results

• Instantaneous knowledge
• Better service to DCs!
• OOS s reduced 65!
• 4.2 point improvement in service level!
• Focused communication.
• Implemented two Green Belt Projects Unloads and
  OSDs
• Improved efficiency.
• Lines/Order -16 Total -33 Perryman
• Cases/Line 33 Total 50 Perryman
• WOS 6 reduction
• Improved seasonal execution
• Implemented one Green Belt Project Suncare
  Returns
• Improved cash flow
• Received the 2002 VICS Best CPFR
  Implementation.