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DSCSA ImplementationPanel Discussion

Chaired by Mr. Scott Mooney, Vice President Distribution Operations – Supply Chain Assurance, McKesson Pharmaceutical Mr. Christopher Reed, Global Operations Manager – GDSN, Johnson & Johnson Supply ChainMr. Thomas McHugh, Senior Strategeist Supply Chain & Technology, CVS HealthMr. Jeffrey Denton, IT Global Secure Supply Chain, Amerisourcebergen Corporation

18 October 2017

DSCSA ImplementationManufacturer Perspective

Christopher Reed Supply Chain VisibilityOctober 2017

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• Global Leader in Health Care

• More than 265 Operating Companies in 60 Countries

• Selling Products in More than 175 Countries

Johnson & JohnsonGlobal Presence

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Agenda

• Why Serialization?

• Effectively Operationalizing Your Serialization Program

• Challenges and Lessons Learned

• Next Steps and Interoperability

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Why Are We Serializing and Track & Tracing Our Products?Counterfeit and diverted products are a global problem

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Timeline to Comply

DSCSAImplementation Timeline

November 2013Congress enacts the DSCSA

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

January 2015Manufacturers send and distributors receive Lot data

2017/2018Manufacturersserialize products

2018Repackagersserialize

2019Distributors traceability

2020Pharmacytraceability

2023Unit level traceabilityFirst customer

pilot in 2013

JJSC Initiates program in 2012

Expanding Customer ConnectivityHDA/Customer Pilots In 2016

Verification and Lot Level Tools

System to capture serial numbers goes-live in 2014

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Supply Chain with Track & Trace

12 serialized & aggregatedPREZISTA®

bottles in a case

261 cases to a pallet. Each case has the

parent serial number

Pallet is shipped(truck, boat, orairplane) to DC

DC where individual cases get pulled from the pallet, scanned and

shipped to Customer

Wholesaler Customerreceive products, scans every case and ships to pharmacies, hospitals,

etc.

Wholesaler ships productto pharmacies, hospitals, etc. They scan bar code

with serial number

Rx

PREZISTA®

Used to treat human immunodeficiency virus (HIV)

Regulatory mandates are demanding visibility of products from point of packaging to point of dispense

• Demand improved supply chain visibility

• What product? • Where has it been? • Where is it going? • How long has it been there?• What are the inventory levels?

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Effectively Operationalizing Your Serialization ProgramThe Johnson & Johnson Supply Chain Experience

Key Takeaways

• Regulations remain primary driver of serialization and traceability

• Interoperability relies on standards

• A multidisciplinary approach is a must have

• Workforce impact is significant

• Tremendous importance on master data and change management

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Interoperability And StandardsDevelopment and adoption of standards are critical

Standards Must Enable These Capabilities

GTINGLN

SSCC

UPC / EANDATAMATRIX/BAR

EPC / RFID

GDSNEDI

EPC / RFIDSource: GS1

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Interoperability And StandardsDevelopment and adoption of standards are critical

Internal/ External Standards and Guidelines are necessary to achieve and sustain end-to-end supply chain visibility

Product Identification and Traceability • Policy• Technical Standard• Standard Operating Procedures

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Collaboration Identifies Additional Business Value Opportunities

• Strengthens supply chain integrity

• Higher fidelity visibility enables efficiency improvements- Reducing counts and checks

- Reducing claims and credits

- Enhancing returns verification

• Communal standardizing of “best practices”

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Lessons LearnedOrganizing and sustaining a large, global initiative provides tremendous opportunities to learn and grow

• Agile

• Lead times

• Collaboration

• Communicate

• Utilization of partners

• Strategy and execution

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7 Billion Reasons to Care

Serialization and Traceability Benefits Patients and Consumers Around the Globe

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Christopher ReedSupply Chain Visibility

Johnson & Johnson Supply ChainCreed9@its.jnj.com

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