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Related Experiment Video

Updated: May 22, 2026

Characterizing the Composition of Molecular Motors on Moving Axonal Cargo Using "Cargo Mapping" Analysis

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Published on: October 30, 2014

Small molecule compound logistics outsourcing--going beyond the "thought experiment".

Devon L Ramsay¹, Joseph D Kwasnoski, Gary W Caldwell

¹Community of Research Excellence & Advanced Technology (CREATe), Janssen Pharmaceutical Companies of Johnson and Johnson, Welsh and McKean Roads, Spring House, PA 19477-0776, USA. dramsay1@its.jnj.com

Current Topics in Medicinal Chemistry

|May 11, 2012

Summary

Johnson & Johnson Pharmaceutical Research & Development (J PRD) successfully outsourced its compound inventory and processing to a third party, achieving cost savings and improved service. Sustainable success requires dedicated vendor management and transparent IT infrastructure.

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Last Updated: May 22, 2026

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Area of Science:

Pharmaceutical industry
Drug discovery
Outsourcing strategies

Background:

Increasing cost pressures drive pharmaceutical companies to outsource drug discovery.
Compound collections are critical assets in drug discovery.
Johnson & Johnson Pharmaceutical Research & Development (J PRD) initiated a significant outsourcing of its compound management.

Purpose of the Study:

To discuss the implementation of a hybrid model for compound management.
To share lessons learned from outsourcing compound inventory and processing.
To evaluate the impact of outsourcing on cost, service, and flexibility.

Main Methods:

Implemented a combination model: local compound logistics site support with an outsourced centralized processing center.
Managed external third-party vendor for compound inventory and processing.
Monitored service response, cost savings, and business adaptability over five years.

Main Results:

Achieved substantial cost savings.
Improved local service response times.
Established a flexible platform adaptable to changing business needs.

Conclusions:

Outsourcing compound management can yield significant benefits.
Sustainable success depends on dedicated vendor management, collaborative approach, and robust IT infrastructure with transparency.
Key lessons learned from the outsourcing experience were both predictable and unexpected.