Business communication

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Background
Johnson & Johnson is a global healthcare company with comprehensive and
wide-ranging business. The business involves three major areas of consumer goods,
pharmaceuticals and medical equipment.
Johnson & Johnson is also working with other companies to produce its own
products. <supplier responsibility standard> help the company to select partners who
are consistent with J&J's values and standards, and help partners understand
company’s expectations. Since the implementation of the standard in 2006, 98% of
J&J's global suppliers have been evaluated and continue to comply with the standards.
J&J supplier responsibility standard
 Abide by applicable laws and regulations;
 Abide by moral standards, be honest and trustworthy;
 Focus on quality and integrate it into business processes;
 Respect for individuals;
 Advocate for employee safety, health and welfare;
 To undertake environmental responsibilities;
 Implement management system to ensure continuous performance and
improvement.
In setting these standards, we have considered differences in the legal and
cultural environment in which suppliers operate, as well as international
expectations of business ethics, product quality, Labor and employment, health
and safety and the environment. Through POA meeting, we can understand the
characteristics and expertise of suppliers, and jointly negotiate actions and plans
with suppliers, to achieve win-win goals.
J&J also provides suppliers with appropriate capacity building support,
rather than unilateral requirements, to ensure that they can truly comply with
strict material safety and quality standards. Through the growth ladder program,
J&J shares its expertise and technology with partners to systematically improve
supplier performance in occupational health, environmental safety, quality
control, architectural design, labor rights, and product management. In the end, it
provides consumers with high-quality products and services.
Supplier growth ladder project
J&J has always treated its suppliers as extensions of itself rather than as
separate outsiders, so it is as strict with them as it is with itself. The practical
difficulty is that many suppliers in China have difficulty in meeting J&J
standards at first and they are very strange to J&J's advanced standards with
detailed content. J&J has been trying to explore how to improve the ability of
suppliers to promote their compliance.
One of the important initiatives is to design a growth ladder for suppliers.
Through this project, J&J introduced the basic concepts of supply chain
management to suppliers and integrated the natural learning curve decomposition
of suppliers into each step. Through this method, J&J has witnessed many
suppliers in China from the beginning to gradually excellent performance in just
two or three years.
At the beginning of 2010, J&J began to accelerate the integration of
enterprise supply chains around the world, in the hope that by reducing
complexity and redundancy, we could continuously produce high-quality
products and maintain reliable supply. Now we are about to reach the
predetermined target in advance. While ensuring the improvement of product
quality, the number of suppliers will be reduced by 1/3.
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