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Supply Chain Industry Updates

Gartner Ranks Johnson & Johnson Supply Chain No. 1


Story Highlights

  • Johnson & Johnson is once again at the top of Gartner’s list of top healthcare supply chains, ahead of CVS Health, Cleveland Clinic, McKesson and Banner Health.
  • J&J also ranked third on an earlier Gartner ranking, behind only Cisco and Colgate-Palmolive.

This has been a tough year for supply chains (spoiler alert: it’s not over yet), and perhaps no sector has gotten more scrutiny during the pandemic than healthcare. “All supply chains had to make significant changes to the way they worked, both tactically and strategically,” notes Stephen Meyer, senior director/analyst with the Gartner Supply Chain practice. 

Meyer explained that successful operations “embraced the disruption.” “[They] don’t focus on just one strategy, but a portfolio of elements and solutions to protect their supply chains, including classic risk management, demand and supply visibility and agility,” he said in a statement.

That evidently was the strategy of organizations that made this year’s Gartner Healthcare Supply Chain Top 25 ranking, released today. At the top of the list — and for the second year running — was Johnson & Johnson.

“J&J set itself apart in its approach to supply chain innovation,” Meyer said. “While other supply chains made notable strides in individual projects and initiatives, J&J stood out in its commitment to finding novel supply chain solutions to the challenges of modern healthcare.”

“Not only have we been able to respond to the global pandemic, but we’ve ultimately been able to harness new levels of agility and get ahead of changing needs.”

New Jersey-based J&J also performed well in Gartner’s list of the top 25 supply chains overall, which was released earlier this year. It ranked behind only Cisco and Colgate-Palmolive.

“Over the past few years, our global supply chain has been working hard to continuously improve its operations and the supply chain community at large, while accelerating new levels of innovation in products, services and experiences for the doctors, nurses, patients and customers we serve,” Kathy Wengel, J&J executive vice president and chief global supply chain officer, said in August. “By building foundational capabilities in key areas like business continuity, digital and planning, not only have we been able to respond to the global pandemic, but we’ve ultimately been able to harness new levels of agility and get ahead of changing needs.” 

Also among the healthcare top five announced today were CVS Health, Cleveland Clinic, McKesson and Banner Health. In addition, Mayo Clinic, Intermountain Health Care and Cardinal Health were once again named supply chain “Masters,” a special ranking for leading organizations. “Even in this challenging year, they continued to demonstrate supply chain excellence, agility and innovation,” Meyer said. 

According to Gartner, healthcare-related companies that made its cut were the ones that aligned their supply chain functions with the overall organization’s strategy, an approach that gave them an advantage at the start of the pandemic. “Leading supply chains ensure strategy development is directly linked to their company’s process,” Meyer observed. “They align the supply chain strategy to the existing corporate goals, but also ensure company leadership understands how the supply chain can innovate to deliver additional company or customer value. Additionally, they seek external guidance from their customers and peers to include their perspectives.”