Optimizing the Supply Chain at Janssen Pharmaceutica

Pharmaceutical giant turns to Optiant for solution to eliminate excess inventory without compromising service levels

Pharmaceutical giant turns to Optiant for solution to eliminate excess inventory without compromising service levels

Boston — February 9, 2005 — Belgium-based Janssen Pharmaceutica has engaged supply chain design specialist Optiant to help eliminate excess inventory without compromising service levels at the pharmaceutical giant's operations.

A wholly owned subsidiary of Johnson and Johnson, Janssen Pharmaceutica provides medications and therapies for patients with chronic and life-threatening conditions, including cancer, Alzheimer's disease, mental illness and intractable pain.

Initially, Optiant's team will work with Janssen's supply chain organization to model existing supply chains for two products being produced and distributed worldwide and to identify opportunities for reducing inventory levels and optimizing lot-sizes.

"The supply chain enables nearly every aspect of our business, so continually improving how it performs is a top priority for us," said Johan Maes, vice president of chemical production strategy, based at Janssen in Beerse, Belgium. "The combination of Optiant's proven value in tackling the challenges we face and the team's clear understanding of our unique situation was a critical factor in our decision."

Optiant said its PowerChain Suite delivers supply chain design and multi-echelon inventory optimization that will enable Janssen to accommodate a range of real-world constraints, from long lead times for chemical compounds to unique dosing and packaging needs based on regional requirements.

"PowerChain Echelon maximizes capacity utilization, striking the right balance between production efficiencies and inventory targets," Optiant said in a statement. "This will allow Janssen Pharmaceutica to simultaneously satisfy service levels, plant capacity and warehouse capacity constraints for its key drug components."

In addition, Janssen will use PowerChain Inventory to help ensure the right amount of inventory at the correct locations across the company's entire operation, which spans dozens of regional and national pharmaceutical suppliers, production and distribution facilities.

The deal, Optiant's first customer in Europe, comes just four months after the solution provider established operations in France in response to what Optiant says is growing awareness among the region's manufacturers of the value in streamlining and optimizing complex supply chains.

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