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.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”