Recently honored with CSCMP's prestigious Distinguished Service Award, Kathy Wengel—Johnson & Johnson's top supply chain executive—has dedicated her career to building diverse teams that create world-class supply chains.
As a child, Kathy Wengel loved to build with Lego bricks. She enjoyed selecting blocks of different sizes, shapes, and colors and then bringing them together into a unified whole.
Her job today as executive vice president and chief global supply chain officer at the health-care giant Johnson & Johnson (J&J) is not much different. For instance, she recently co-led an effort to redesign and rebuild J&J's supply chain and quality operating models. This entailed taking all of the disparate parts of the health-care company's global operations—and those of its suppliers and customers—and melding them together into an integrated process that's focused on the end customer.
Wengel and her team proved to be master builders. The redesign propelled J&J's operation into the ranks of truly world-class supply chain organizations. In 2019, the company captured the number-eight spot on the analyst group Gartner's annual "Supply Chain Top 25" list.
Wengel believes the initiative's success lies in the diverse and global supply chain teams the company has spent years building. Johnson & Johnson is committed not only to bringing people with diverse experiences and perspectives onto its teams but also to broadening those team members' perspectives by moving them through varied roles around the globe.
Wengel herself is an example of this. During her 31-year career at J&J, she has served in a variety of positions in a variety of places, including manager of manufacturing engineering at a J&J site in Puerto Rico and general manager of one of J&J's largest production facilities in Italy. She has also served as vice president of quality and compliance for the company's Europe, the Middle East, and Africa (EMEA) and Asia Pacific regions and as the corporation's first chief quality officer.
In addition to her day-to-day activities, Wengel has made time to give back to the profession. She is active in many industry organizations, including the Council of Supply Chain Management Professionals (CSCMP), the global standards organization GS1 Global, the National Association of Manufacturers, and AWESOME (Achieving Women's Excellence in Supply Chain Operations, Management, and Education).
In recognition of her service and leadership, CSCMP recently presented Wengel with its Distinguished Service Award (DSA), which honors an individual for significant, consistent, and career-long contributions to the logistics and supply chain management disciplines. She recently talked with CSCMP's Supply Chain Quarterly Executive Editor Susan Lacefield about her career path and her vision for the profession's future.
NAME: Kathy Wengel TITLE: Executive Vice President and Chief Global Supply Chain Officer for Johnson & Johnson EDUCATION: Bachelor of Science in engineering from Princeton University PREVIOUS EXPERIENCE: chief quality officer and worldwide vice president of quality and control and EHS&S (environmental, health, safety, and security) at Johnson & Johnson; vice president of quality and control of EMEA, AP, and WWCP (Europe, Middle East, Africa; Asia Pacific, and Worldwide Chemical) for The Janssen Pharmaceutical Companies of Johnson & Johnson LEADERSHIP: Member of the Johnson & Johnson's Executive Committee; serves as the Executive Sponsor of Johnson & Johnson Women in STEM2D program and the Women's Leadership & Inclusion Employee Resource Group; Chairman of the GS1 Global Management Board, a not-for-profit organization that provides global standards for efficient business communication; sits on the board of the National Association of Manufacturers; and Advisory Board member and advocate for nonprofit AWESOME (Achieving Women's Excellence in Supply Chain Operations, Management, and Education)
Q: What do you see as the top challenges facing supply chain executives going into 2020, and how is Johnson & Johnson addressing those challenges?
In my opinion, a top challenge for every supply chain executive is a question I ask myself every day: How do we find the best talent to drive future innovations for patients, and ultimately the growth of our company? I spend more than a third of my time working on this challenge: accelerating talent development, identifying the most promising future leaders, establishing a culture of self-direction and accountability, and ensuring we equip our entire workforce with the skills and capabilities they will need for the future.
From artificial intelligence (AI) to automation and the Internet of Things, the world of supply chain is quickly evolving as technology challenges us to think bigger and innovate faster. To deliver top-quality products to our patients, customers, and consumers, our Johnson & Johnson workforce needs to include the best and brightest minds. We must also continually expand our pool with respect to diversity and experience, searching for and developing talented people from all backgrounds who have the right blend of skills, curiosity, and passion that will continue to fuel our company's innovation engine and maintain our position as a leader in the industry.
Q: What is your proudest work-related achievement, and why?
I'll actually give you two. The first is the excellence with which we implemented our redesigned supply chain model for J&J. Over the past decade, we have completely transformed the role of supply chain for our corporation and, more importantly, for our customers. While this journey never ends, I want to recognize our more than 50,000 supply chain associates for their fantastic work.
Second, and very much related to the first, would be building more diverse global teams at every step of my career. I've seen so many times how results are dramatically improved when you put people with different experiences, from different backgrounds, and with different perspectives together and give them a problem to solve.
We are very proud of the external recognition we've received, including being ranked this year by Gartner as one of the Top 10 supply chains in the world across all industries and the top-ranked health-care company. And I'm extremely honored and humbled at being named the recipient of the 2019 Distinguished Service Award from CSCMP. Each of these recognitions is due to the strong, dynamic, and diverse teams we have that are tackling the complex challenges that come at us in health care each day.
Q: How have things changed for women in supply chain management since you entered the profession? What further changes would you like to see?
Over the years, I have seen an increase in the number of women in supply chain management roles and supply chain overall, but there are still too few of us in leadership positions. This is reflected in the very small percentage of women (approximately 5%) who occupy the top supply chain spot in Fortune 500 companies. Supply chain is such an interesting and exciting place to be, and there are many talented women leading and innovating—I know thousands of them! We can all do a better job in telling that story and supporting younger women who have the interest and drive to succeed in this space.
I'm very proud to have a gender-balanced (50/50) globally diverse supply chain leadership team here at Johnson & Johnson. We need visible and vocal women in supply chain roles who can inspire the next generation of supply chain and STEM2D (science, technology, engineering, math, manufacturing, and design) professionals. That is why I dedicate a portion of my time to serving as the executive sponsor of Johnson & Johnson's "Women's Leadership & Inclusion" and "Women in STEM2D" initiatives.
Q: What advice would you give someone who's just starting a career in supply chain management?
I'm asked this question a lot, and I've realized that the lessons we learn early on in our careers will influence the way we work and lead teams, often for decades. I always encourage people to ask lots of questions to help understand the overall context of a situation and where it sits in the priorities of the business and our customers. I certainly asked a lot of questions at the beginning of my career, and my team can confirm for you that I still do today! By hearing what others have to say, on the corporate level, on the manufacturing lines, and especially on the customer side, we can gain a better understanding of the vast health-care landscape and make decisions that are in the best interest of the company and our employees.
More specifically, I'd tell a newcomer that when an interesting opportunity presents itself, raise your hand! I'm an advocate of stepping outside of your comfort zone and taking opportunities or positions that may seem different or unusual; in my experience, that's when you learn the most. Each new opportunity and relocation pushed me to new perspectives and helped me to grow as a leader. Those are the moments that define you, teach you, and set you apart from others.
Q: You're active in a number of industry associations and university programs. Why do you feel that's important?
It is critical to spend part of your time outside of your own organization's walls. We do not exist in a vacuum. We're part of a vast—and constantly evolving—global health-care ecosystem, where the effects of even minor regulatory or process changes can reverberate throughout our operations.
That is why I'm proud to serve as chairman of the board of GS1 Global, an organization that sets and maintains global standards for the exchange of critical business data to ensure patient safety and supply chain efficiency. I also sit on the board of the National Association of Manufacturers in the U.S. and am on the advisory board of AWESOME. And I very much enjoy spending time with university students getting ready to embark on supply chain careers.
I see all of these activities as part of my responsibility as a leader to find and support the next generation of supply chain leaders. They are the ones who will usher in the next technology breakthroughs to meet the changing needs of a market that we can only imagine today.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."