Supply Chain Management Scenario Background Efficient and effective Supply Chain Management (SCM) is integral to business success. SCM encompasses the end-to-end business processes necessary for a company to produce goods for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes is critical. While Although there is no single solution to implementing SCM, most companies have a strategy or approach for managing the various components of SCM. Perhaps the most important and challenging aspect of SCM is the choice ofchoosing and developing working relationships with suppliers of parts and materials needed to produce a final product. Organizations must carefully choose and manage its their suppliers to avoid any number of risks associated with failure to deliver by a supplier. One way to mitigate these risks is for an organization to engage and incentivize supply chain partners through Supplier Relationship Management (SRM) practices. SRM guides the expectations and relationships among the parties and provides benefits for both sides. Today’s complex, global business environment requires more than just agreements with suppliers. The sources of parts and materials are no longer always procured locally. Supplier sourcing is more likely to be conducted globally, with the potential to impact people, communities, and cultures in ways that must be considered and addressed responsibly, legally, and ethically. Scenario Johnson & Johnson (J&J) is a large, multi-national company with over more than 125,000 employees worldwide. In its Credo, J&J professes responsible and ethical treatment of all its stakeholders. To that end, J&J commits to the following: forming strong relationships with suppliers; including suppliers as stakeholders in innovation; supporting diversity among suppliers; and providing suppliers the opportunity to make a fair profit. In exchange, suppliers must comply with J&J’s Code of Conduct and Responsibility Standards for Suppliers. You serve as Chief Procurement Manager for the Medical Devices Products at J&J, a position that pays $189,000 annually. You have been with the company for 11 years, and your team works closely with several functions in the organization, including Finance, Marketing, IT, and R&D. One key aspect of your job is to identify reputable supply chain partners that can move product to healthcare providers around the world. In your leadership role, you find it important to follow the J&J Credo, especially the part stating the following: “Customers’ orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit.” Allied Distributors, Inc. (AD)has approached your office about becoming a worldwide distributor for medical devices. These products are delivered to healthcare professionals in fields like orthopedics, neurology, cardiology, minimally invasive surgery, wound management, and ...

1. Supply Chain Management Scenario
Background
Efficient and effective Supply Chain Management (SCM) is
integral to business success. SCM encompasses the end-to-end
business processes necessary for a company to produce goods
for delivery to the end consumer. Integration between the
processes and collaboration among the entities involved in the
processes is critical. While Although there is no single solution
to implementing SCM, most companies have a strategy or
approach for managing the various components of SCM.
Perhaps the most important and challenging aspect of SCM is
the choice ofchoosing and developing working relationships
with suppliers of parts and materials needed to produce a final
product. Organizations must carefully choose and manage its
their suppliers to avoid any number of risks associated with
failure to deliver by a supplier. One way to mitigate these risks
is for an organization to engage and incentivize supply chain
partners through Supplier Relationship Management (SRM)
practices. SRM guides the expectations and relationships among
the parties and provides benefits for both sides.
Today’s complex, global business environment requires more
than just agreements with suppliers. The sources of parts and
materials are no longer always procured locally. Supplier
sourcing is more likely to be conducted globally, with the
potential to impact people, communities, and cultures in ways
that must be considered and addressed responsibly, legally, and
ethically.
Scenario

2. Johnson & Johnson (J&J) is a large, multi-national company
with over more than 125,000 employees worldwide. In its
Credo, J&J professes responsible and ethical treatment of all its
stakeholders. To that end, J&J commits to the following:
forming strong relationships with suppliers; including suppliers
as stakeholders in innovation; supporting diversity among
suppliers; and providing suppliers the opportunity to make a fair
profit. In exchange, suppliers must comply with J&J’s Code of
Conduct and Responsibility Standards for Suppliers.
You serve as Chief Procurement Manager for the Medical
Devices Products at J&J, a position that pays $189,000
annually. You have been with the company for 11 years, and
your team works closely with several functions in the
organization, including Finance, Marketing, IT, and R&D. One
key aspect of your job is to identify reputable supply chain
partners that can move product to healthcare providers around
the world. In your leadership role, you find it important to
follow the J&J Credo, especially the part stating the following:
“Customers’ orders must be serviced promptly and accurately.
Our suppliers and distributors must have an opportunity to make
a fair profit.”
Allied Distributors, Inc. (AD)has approached your office about
becoming a worldwide distributor for medical devices. These
products are delivered to healthcare professionals in fields like
orthopedics, neurology, cardiology, minimally invasive surgery,
wound management, and women’s health. The timing of this
proposal is right because the J&J leadership team has
implemented a strategic plan to improve patient outcomes and
expand market share by introducing innovative products. Your
job is to engage the procurement process to introduce a new
supplier for medical devices.
Introducing a new supplier into the supply chain at J&J requires
a good understanding of its supply chain practices and approach
to SRM. The resources below provide more detail information
in these areas.
J&J Homepage

3. https://www.jnj.com/
J&J Product Information – Medical Devices
https://www.jnj.com/healthcare-products/medical-devices
J&J Credo
https://www.jnj.com/about-jnj/jnj-credo
J&J Code of Conduct
https://jnj.brightspotcdn.com/33/7c/6d77ff4b4adb8644d10f298d
819e/code-of-conduct.pdf
J&J Responsibility Standards for Suppliers
https://www.jnj.com/about-jnj/company-
statements/responsibility-standards-for-suppliers
J&J 2015 Citizenship & Sustainability Report
https://jnj.brightspotcdn.com/25/f7/b3172c104796b553e9ea35ba
c1d0/2015-jnj-citizenship-sustainability-report.pdf
©2017 Walden University 2
Supply Chain Management Plan
(Project Name)

4. Student Name
Walden University
Date
Table of Contents
Company Profile 3
Supply Chain Management Philosophy 3
Supply Chain Management Practices 3
Project Scope 4
Project Schedule 4
Project Cost 6
Project Budget 7
Company Profile
Prepare a company profile. The profile should include the items
listed below. (1 page)
General Business Information
· Business Name
· Primary Business Location (e.g., Headquarters Location)
Company Overview
· Business Purpose (e.g., Business Function / Mission
Statement)
· Size / Market Reach (e.g., Small, Medium, Large / Local,
National, Global)

5. Business Details
· Principal Customers for Medical Devices
· Major Competitors for Medical DevicesSupply Chain
Management Philosophy
Supply Chain Management (SCM) encompasses managing and
integrating essential business processes across an organization.
Efficient and effective SCM affords companies an advantage
over its their competitors. While most organizations adhere to
industry standards and best practices in SCM (e.g., ISO 9000),
they may also incorporate unique aspects that differentiate them
from the competition. These unique aspects are typically
aligned with the company’s culture, mission, and philosophy on
social responsibility and accountability.
Evaluate Johnson & Johnson’s (J&J) SCM philosophy (2-3
pages)
· Describe J&J’s philosophy on SCM
· Explain how J&J’s philosophy on SCM supports its mission
statement
· Explain how J&J’s three key focus areas (People, Places, and
Practices) apply to its relationships with supply chain partners.
Supply Chain Management Practices
Supply Chain Management (SCM) encompasses the end-to-end
business processes necessary for a company to produce goods
and services for delivery to the end consumer. Integration
between the processes and collaboration among the entities
involved in the processes are critical. In 2001, the Global
Supply Chain Forum recommended a common definition of
SCM and identified eight key business processes that they
proposed should be implemented and integrated.
Supply Chain Management Process (1 page)
· Briefly describe each of the eight key business processes
identified in the article “The Supply Chain Management
Processes,” including the purpose of each process in managing
the supply chain.

6. Evaluate J&J’s approach to Supplier Relationship Management
(SRM) (2-3 pages)
· What is J&J’s philosophy on SRM?
· What are the requirements for becoming a supplier partner
with J&J?
· What role do suppliers play in achieving the mission of J&J?
· How effective are J&J’s SRM practices?
Project Scope
The scope of the project is derived from stakeholder
requirements and is used as input to create the Work Breakdown
Structure (WBS). The WBS depicts the total scope of the
project, and is the primary source of information for the
development of the project schedule and , for the determination
of project resources, and is an important element of
performance measurement.
The final deliverable for this project is a supplier product
agreement between J&J and Allied Distributors for the
production of medical devices. Five sub-deliverables that must
be produced before the supplier product agreement can be
created are: Sourcing Requirements; Sourcing Proposal;
Supplier Selection Criteria; Supplier Responsibility Standards;
and Supplier Performance Measurement Criteria.
Compose a project scope statement (1 page)
· Describe the overall scope of work required to create the
Ffinal Pproject deliverable, a supplier product agreement
between J&J and Allied Distributors.
· Describe each of the five sub-deliverables that must be created
in order to produce the final project deliverable.
Project Schedule
A project schedule is developed by estimating the duration of
the activities that must be performed in order to produce each of

7. the sub-deliverables. The project schedule is typically
represented in a Gantt Chart. The Gantt Chart depicts the
project activities, durations, start and end dates, and
predecessors. It also shows the project’s critical path. Activities
on the critical path are those that, if delayed, will impact the
project finish date.
Define Project Activities
· Using the outline view of the WBS below, define at least two
activities that must be performed in order to produce each of the
five sub-deliverables. The activities should be aligned with
J&J’s SRM practices for new supplier partners.
1. Supplier Product Agreement
1.1. Sourcing Requirements
1.1.1. Activity
1.1.2. Activity
1.2. Sourcing Proposal
1.2.1. Activity
1.2.2. Activity
1.3. Supplier Selection Criteria
1.3.1. Activity
1.3.2. Activity
1.4. Supplier Responsibility Standards
1.4.1. Activity
1.4.2. Activity
1.5. Supplier Performance Measurement Criteria
1.5.1. Activity
1.5.2. Activity
Estimate Activity Durations
The next step after defining the activities for the project is to
estimate the duration of each activity. Using the Table 2 below
and considering the available resources (for this project, only
human resources are required) provided in Table 1:

8. · Estimate the duration for each of the project activities and
enter the durations in the table.
· Describe the tool/technique you used to estimate the activity
durations. (2-3 paragraphs)
· Describe a tool/technique other than the one you used that can
be used for estimating activity durations. (2-3 paragraphs)
Table 1: Available Project Resources
Resource
Rate
Project Sponsor
$98/hour
Project Manager
$46/hour
Procurement Manager
$33/hour
Human Resource Representative
$36/hour
Environment, Health, Safety, & Sustainability (EHS&S)
Representative
$73/hour
Legal / Regulatory Representative
$92/hour
Table 2: Project Deliverables/Activities and Durations
Deliverable / Activity
Duration
1. Supplier Product Agreement
1.1. Sourcing Requirements
1.1.1. Activity
Duration

9. 1.1.2. Activity
Duration
1.2. Sourcing Proposal
1.2.1. Activity
Duration
1.2.2. Activity
Duration
1.3. Supplier Selection Criteria
1.3.1. Activity
Duration
1.3.2. Activity
Duration
1.4. Supplier Responsibility Standards
1.4.1. Activity
Duration
1.4.2. Activity
Duration
1.5. Supplier Performance Measurement Criteria
1.5.1. Activity
Duration
1.5.2. Activity
Duration
Gantt Chart
· Assume that the project starts on the first day of this class.
Using the data in Table 2 above, construct a Gantt Chart for the
SCM project.
· The Gantt Chart should depict Activity Name, Start Date,
Finish Date, Duration, and Predecessors.
· The Gantt Chart should display the critical path.
Project Cost

10. Project Cost Management involves estimating how much it will
cost to complete all of the project activities and then
aggregating those costs to determine the total cost of the
project. In order to estimate the cost of the project, resources
must be applied to the project activities.
Project Cost Estimates
Using the available resources provided in Table 1 above and
assuming that all resources will be assigned 100%:
· Record the resources name(s), quantity, and rate in Table 3
below. Note that more than one resource may be needed for the
activities.
· Estimate the cost for each of the project activities and enter
the costs in the table. Calculate the total cost of the project.
· Describe the tool/technique you used to estimate the activity
costs. (2-3 paragraphs)
· Describe a tool/technique other than the one you used that can
be used for estimating activity costs. (2-3 paragraphs)
Table 3: Project Deliverables/Activities, Durations, Resources,
Cost
Deliverable / Activity
Duration
Resource Name(s)
Resource Quantity /
Rate
Activity Cost
1. Supplier Product Agreement
1.1. Sourcing Requirements

11. 1.1.1. Activity
Duration
1.1.2. Activity
Duration
1.2. Sourcing Proposal
1.2.1. Activity
Duration
1.2.2. Activity
Duration
1.3. Supplier Selection Criteria
1.3.1. Activity
Duration

12. 1.3.2. Activity
Duration
1.4. Supplier Responsibility Standards
1.4.1. Activity
Duration
1.4.2. Activity
Duration
1.5. Supplier Performance Measurement Criteria
1.5.1. Activity
Duration
1.5.2. Activity
Duration

13. Total:
Project Budget
The project budget is developed after project costs have been
estimated. The budget represents the amount of funding within a
certain period that will be needed for the project.
From the cost estimates in Table 3 above:
· Prepare a Basis of Estimates to document the estimating
techniques that were used to determine the project costs. (1
page)
· Prepare a budget for the first quarter of the SCM Project using
the “Project Budget” ExcelXCEL template.
1.0
Supplier Product Agreement
1.1
Sourcing Requirements
1.2
Sourcing Proposal
1.3
Supplier Selection Criteria
1.4
Supplier Responsibility Standards
1.5

14. Supplier Performance Measurement Criteria
©2017 Walden University 4