IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v55y2025i3p254-262.html

Johnson & Johnson Uses Advanced Analytics to Optimize Gaylord Building and Truck Loading for Outbound Container Shipments

Author

Listed:
  • Nitish Umang

    (Johnson & Johnson Supply Chain Digital & Data Science, New Brunswick, New Jersey 08933)

  • Thomas Balcavage

    (Johnson & Johnson MedTech Deliver Analytics & Innovation, New Brunswick, New Jersey 08933)

  • Jefferson Jee

    (Johnson & Johnson MedTech Deliver Analytics & Innovation, New Brunswick, New Jersey 08933)

  • Riddhesh Nitin Kumtakar

    (Johnson & Johnson Supply Chain Digital & Data Science, New Brunswick, New Jersey 08933)

  • Prem Raj Dahal

    (Johnson & Johnson Healthcare Systems, Memphis Logistics Center, Memphis, Tennessee 38118)

  • Angela Simko

    (Johnson & Johnson Supply Chain Digital & Data Science, New Brunswick, New Jersey 08933)

  • James Oduntan Bode

    (Johnson & Johnson Supply Chain Digital & Data Science, New Brunswick, New Jersey 08933)

Abstract

Johnson & Johnson ships millions of product units through third-party vendors to meet the healthcare needs of the global population. Efficient loading and packing of container shipments is critical to reducing operating costs and improving supply chain resilience. The Johnson & Johnson Supply Chain Digital and Data Science team, in collaboration with the Johnson & Johnson MedTech Deliver Analytics & Innovation team, developed a web-based decision-aid tool called LoadMax that uses advanced optimization solutions to generate three-dimensional plans for loading picked containers into gaylords and stacking gaylords onto trucks for outbound container shipments. The tool is currently deployed at a major distribution site in Johnson & Johnson to optimize the loading of container shipments on the eight largest shipping lanes by volume, resulting in significant savings in operating cost and streamlining the shipment process. In the future, there are plans to expand the deployment across other major international distribution sites and outbound lanes with total estimated annual net savings of millions of dollars.

Suggested Citation

  • Nitish Umang & Thomas Balcavage & Jefferson Jee & Riddhesh Nitin Kumtakar & Prem Raj Dahal & Angela Simko & James Oduntan Bode, 2025. "Johnson & Johnson Uses Advanced Analytics to Optimize Gaylord Building and Truck Loading for Outbound Container Shipments," Interfaces, INFORMS, vol. 55(3), pages 254-262, May.
    • Handle: RePEc:inm:orinte:v:55:y:2025:i:3:p:254-262
    DOI: 10.1287/inte.2023.0085
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.2023.0085
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.2023.0085?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lu Zhen & Haolin Li & Liyang Xiao & Dayu Lin & Shuaian Wang, 2024. "Mathematical Programming-Driven Daily Berth Planning in Xiamen Port," Interfaces, INFORMS, vol. 54(4), pages 329-356, July.
    2. Rafael Epstein & Andres Neely & Andres Weintraub & Fernando Valenzuela & Sergio Hurtado & Guillermo Gonzalez & Alex Beiza & Mauricio Naveas & Florencio Infante & Fernando Alarcon & Gustavo Angulo & Cr, 2012. "A Strategic Empty Container Logistics Optimization in a Major Shipping Company," Interfaces, INFORMS, vol. 42(1), pages 5-16, February.
    3. Lu Zhen & Wenya Lv & Zheyi Tan & Bin Dong, 2022. "Container Transportation Scheduling Between Port Yards and the Hinterland in Yunfeng," Interfaces, INFORMS, vol. 52(3), pages 250-266, May.
    4. Célia Paquay & Sabine Limbourg & Michaël Schyns & José Fernando Oliveira, 2018. "MIP-based constructive heuristics for the three-dimensional Bin Packing Problem with transportation constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 56(4), pages 1581-1592, February.
    5. Bischoff, Eberhard E. & Marriott, Michael D., 1990. "A comparative evaluation of heuristics for container loading," European Journal of Operational Research, Elsevier, vol. 44(2), pages 267-276, January.
    6. Eley, Michael, 2002. "Solving container loading problems by block arrangement," European Journal of Operational Research, Elsevier, vol. 141(2), pages 393-409, September.
    7. Dowsland, Kathryn A., 1987. "An exact algorithm for the pallet loading problem," European Journal of Operational Research, Elsevier, vol. 31(1), pages 78-84, July.
    8. John Chao & Matty Chen & Aileen Deng & Harold Miao & Alexandra Newman & Sophia Tseng & Candace Arai Yano, 2005. "Safeway Designs Mixed-Product Pallets to Support Just-in-Time Deliveries," Interfaces, INFORMS, vol. 35(4), pages 294-307, August.
    9. James R. Kroes & Yuwen Chen & Paul Mangiameli, 2013. "Estimating Demand for Container Freight Service at the Port of Davisville," Interfaces, INFORMS, vol. 43(2), pages 170-181, April.
    10. F. Parreño & R. Alvarez-Valdes & J. Oliveira & J. Tamarit, 2010. "A hybrid GRASP/VND algorithm for two- and three-dimensional bin packing," Annals of Operations Research, Springer, vol. 179(1), pages 203-220, September.
    11. Martins, Gustavo H.A. & Dell, Robert F., 2008. "Solving the pallet loading problem," European Journal of Operational Research, Elsevier, vol. 184(2), pages 429-440, January.
    12. Leonardo Junqueira & Reinaldo Morabito & Denise Sato Yamashita, 2012. "MIP-based approaches for the container loading problem with multi-drop constraints," Annals of Operations Research, Springer, vol. 199(1), pages 51-75, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos A. Vega-Mejía & Jairo R. Montoya-Torres & Sardar M. N. Islam, 2019. "Consideration of triple bottom line objectives for sustainability in the optimization of vehicle routing and loading operations: a systematic literature review," Annals of Operations Research, Springer, vol. 273(1), pages 311-375, February.
    2. Bortfeldt, Andreas & Wäscher, Gerhard, 2013. "Constraints in container loading – A state-of-the-art review," European Journal of Operational Research, Elsevier, vol. 229(1), pages 1-20.
    3. Leonardo Junqueira & Reinaldo Morabito & Denise Sato Yamashita, 2012. "MIP-based approaches for the container loading problem with multi-drop constraints," Annals of Operations Research, Springer, vol. 199(1), pages 51-75, October.
    4. Heßler, Katrin & Hintsch, Timo & Wienkamp, Lukas, 2025. "A fast optimization approach for a complex real-life 3D Multiple Bin Size Bin Packing Problem," European Journal of Operational Research, Elsevier, vol. 327(3), pages 820-837.
    5. Michael F. Gorman & John-Paul Clarke & Amir Hossein Gharehgozli & Michael Hewitt & René de Koster & Debjit Roy, 2014. "State of the Practice: A Review of the Application of OR/MS in Freight Transportation," Interfaces, INFORMS, vol. 44(6), pages 535-554, December.
    6. F. Parreño & R. Alvarez-Valdes & J. M. Tamarit & J. F. Oliveira, 2008. "A Maximal-Space Algorithm for the Container Loading Problem," INFORMS Journal on Computing, INFORMS, vol. 20(3), pages 412-422, August.
    7. Sheng, Liu & Hongxia, Zhao & Xisong, Dong & Changjian, Cheng, 2016. "A heuristic algorithm for container loading of pallets with infill boxes," European Journal of Operational Research, Elsevier, vol. 252(3), pages 728-736.
    8. Lins, Lauro & Lins, Sostenes & Morabito, Reinaldo, 2002. "An n-tet graph approach for non-guillotine packings of n-dimensional boxes into an n-container," European Journal of Operational Research, Elsevier, vol. 141(2), pages 421-439, September.
    9. Lim, Andrew & Ma, Hong & Qiu, Chaoyang & Zhu, Wenbin, 2013. "The single container loading problem with axle weight constraints," International Journal of Production Economics, Elsevier, vol. 144(1), pages 358-369.
    10. Lu, Yiping & Cha, Jianzhong, 2014. "A fast algorithm for identifying minimum size instances of the equivalence classes of the Pallet Loading Problem," European Journal of Operational Research, Elsevier, vol. 237(3), pages 794-801.
    11. Zhang, Jingwen & Li, Lubo & Demeulemeester, Erik & Zhang, Haohua, 2024. "A three-dimensional spatial resource-constrained project scheduling problem: Model and heuristic," European Journal of Operational Research, Elsevier, vol. 319(3), pages 943-966.
    12. Gzara, Fatma & Elhedhli, Samir & Yildiz, Burak C., 2020. "The Pallet Loading Problem: Three-dimensional bin packing with practical constraints," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1062-1074.
    13. Kurpel, Deidson Vitorio & Scarpin, Cassius Tadeu & Pécora Junior, José Eduardo & Schenekemberg, Cleder Marcos & Coelho, Leandro C., 2020. "The exact solutions of several types of container loading problems," European Journal of Operational Research, Elsevier, vol. 284(1), pages 87-107.
    14. Chen, C. S. & Lee, S. M. & Shen, Q. S., 1995. "An analytical model for the container loading problem," European Journal of Operational Research, Elsevier, vol. 80(1), pages 68-76, January.
    15. Araya, Ignacio & Moyano, Mauricio & Sanchez, Cristobal, 2020. "A beam search algorithm for the biobjective container loading problem," European Journal of Operational Research, Elsevier, vol. 286(2), pages 417-431.
    16. Egeblad, Jens & Garavelli, Claudio & Lisi, Stefano & Pisinger, David, 2010. "Heuristics for container loading of furniture," European Journal of Operational Research, Elsevier, vol. 200(3), pages 881-892, February.
    17. Wascher, Gerhard & Hau[ss]ner, Heike & Schumann, Holger, 2007. "An improved typology of cutting and packing problems," European Journal of Operational Research, Elsevier, vol. 183(3), pages 1109-1130, December.
    18. Ana María Montes-Franco & Juan Camilo Martinez-Franco & Alejandra Tabares & David Álvarez-Martínez, 2025. "A Hybrid Approach for the Container Loading Problem for Enhancing the Dynamic Stability Representation," Mathematics, MDPI, vol. 13(5), pages 1-21, March.
    19. Bischoff, E.E., 2006. "Three-dimensional packing of items with limited load bearing strength," European Journal of Operational Research, Elsevier, vol. 168(3), pages 952-966, February.
    20. T N Wong & P S Chow & D Sculli, 2006. "A heuristic for sea-freight container selection, cargo allocation and cargo orientation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(12), pages 1452-1463, December.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:55:y:2025:i:3:p:254-262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.