Value Chain Analysis of Johnson and Johnson

Johnson & Johnson (J&J) is a medical technology, pharmaceutical, and medical equipment manufacturing American multinational company. Edward Mead Johnson, James Wood Johnson, and Rober Wood Johnson I founded the pharmaceutical company in 1886. Today, we’ll discuss the value chain analysis of Johnson and Johnson supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers and Vendors of Johnson & Johnson (J&J)

• Sisecam Resources 
• Sonoco Product Company
• Flexible Solutions International
• Brady Corporation
• Flotek Industries
• Certara
• Cryoport
• Veeva Systems
• Darling Ingredients
• Stericycle
• Avery Dennison Corporation 
• Baxter International 
• Scully Royalty 
• Eastman Chemical
• Dow
• Corning 
• Tredegar Corporation
• Avient Corporation
• Berry Global Corporation 
• Aptargroup 

The Value chain analysis of Johnson and Johnson supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Johnson and Johnson value chain analysis company example as follows;

Value Chain Analysis of Johnson and Johnson

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Johnson and Johnson supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Johnson and Johnson

The primary activities are directly involved in the production of products and goods and adding value to the company. Some of the five main primary activities in the value chain analysis of Johnson and Johnson supply chain analysis are as follows;

Inbound Logistics of Johnson and Johnson

I-Large Supplier Network 

Johnson & Johnson (J&J) has established a very large supplier network comprising over 45000 suppliers in various countries across the world. The pharmaceutical brand focuses on building a very strong and trusting relationship with suppliers. It helps the company to ensure the smooth supply of raw materials and medical device components for production and manufacturing. 

II-Responsible & Sustainable Supply Chain

Johnson & Johnson (J&J) partners up and collaborates with suppliers and vendors that would provide the highest quality products and services to the company. The pharmaceutical brand chooses those suppliers that have a strong commitment to environmental sustainability, social, and economic responsibility. However, the supplier’s sustainability program focuses on continuous improvement with limited impact on the environment. 

III-Supplier Diversity Program 

The supplier diversity and inclusion program focuses on partnering up with diverse suppliers and vendors. They’re like small businesses, women-owned businesses, people of color, and various others. Some of the main awards and recognitions Johnson & Johnson (J&J) has received over the years are as follows; 

• Billion Dollar Roundtable
• America’s Top Corporation by WBENC
• Top 10 Global Champions for Supplier Diversity by WeConnect International
• The Best of the Best Corporation for Inclusion 
• Supplier Diversity and Inclusion Award
• Corporation of the Year

Outbound Logistics of Johnson and Johnson

I-Shipping Partners 

Johnson & Johnson (J&J) has developed a very large network of shipping carriers and partners comprising of 50 shipping carriers in North America; and hundreds of others worldwide. The company employs SmartWay carrier software solutions to measure and analyze the supply chain sustainability of various shipping service providers. 

However, the pharmaceutical brand employs multinational transportation channels for the distribution of medicines, drugs, medical equipment, and devices. They make sure the flow of products, supplies, and goods from suppliers to medicine manufacturing units, and production facilities to the distribution centers, warehouses, pharmacies, and to the end consumers. 

Operations of Johnson and Johnson

I-Manufacturing Facilities 

Johnson & Johnson (J&J) has approximately 140 production and manufacturing facilities operated by subsidiary companies. Their location is in various regions worldwide like; Asia Pacific, Asia, Africa, Western Hemisphere, Europe, and America. 

• 33 production facilities are in Asia, Africa, and the Pacific
• 17 are in Western Hemisphere
• 37 are in Europe 
• 52 facilities are in Europe 

II-Warehouses & Distribution Centers

Johnson & Johnson (J&J) has roundabout 350 warehouses and distribution centers in various countries across the globe. They receive products, goods, and supplies from pharmaceutical manufacturers; manage the stock and inventory; and then send it to the hospitals, pharmacies, retail stores, and individual customers based on the order requirements. 

Marketing & Sales of Johnson and Johnson

I-Marketing and Advertisement 

Johnson & Johnson (J&J) runs various types of marketing and advertisement campaigns for the promotion of its pharmaceutical drugs, medical products, and others. The medical brand employs various media channels to approach end consumers and sell its products. However, some of the popular campaigns of the company are as follows; 

• “My Health can’t wait”
• “Care inspires care”
• “Softest touch”

Services of Johnson and Johnson

Johnson & Johnson (J&J) offers a wide range of products and services to customers. The large and diverse product and service portfolio helps the company to target various segments of the customer market. However, they’re as follows; 

• Over-the-counter products
• Oral care 
• Cough and cold products
• Wound care
• Beauty care
• Personal and skincare products
• Baby care
• Feminine hygiene 

Supporting Activities of Johnson and Johnson

Supporting activities are indirectly involved in the production of products and goods and adding value to the company. Some of the main supporting activities in the value chain analysis of Johnson and Johnson supply chain analysis are as follows;

Infrastructure of Johnson and Johnson

Johnson & Johnson (J&J) has established a very large infrastructure of production and manufacturing facilities, warehouses and distribution centers, a supply chain, and a logistics network. Well-developed infrastructure helps the pharmaceutical company to smoothly perform its various operations and deliver drugs and medical devices to various countries across the globe. 

HRM of Johnson and Johnson

Johnson & Johnson (J&J) has employed over 135000 employees to manage its global operations. The human resource management department of the company plays a key role in building a diverse working environment; promoting innovation and creativity, and providing equal opportunity to all regardless of any type of differences. 

Technological Development of Johnson and Johnson

According to an estimate, Johnson & Johnson (J&J) invested approximately over 15 billion USD on research and development in 2023. The R&D budget of pharmaceutical brands is much more than the annual revenue of many companies. High spending on research shows the company’s commitment to research and technological innovation. 

Procurement of Johnson and Johnson

Johnson & Johnson (J&J) is highly cautious about ethical and sustainable procurement. In fact, the pharmaceutical brand has developed strict regulations for suppliers and vendors to ensure compliance with human rights standards. However, it helps the company to ensure the quality of products and services. 

Conclusion: Johnson and Johnson Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of Johnson & Johnson (J&J); we have realized that JnJ is the world’s leading pharmaceutical and medical product company. If you are learning about the Johnson and Johnson value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.