Pg Logistics Revolution: Co-Creating Value
Evaluation of the Case Study:
P&G Logistics Revolution: Co-creating Value
Introduction
This report analyses the case study titled “P&G’s Logistics Revolution – Co-creating Value”, which examines the growth of Proctor and Gamble in respect to its supply chain strategy and development in recent years.
Today, Proctor and Gamble (P&G) is a global company, with more than 138,000 employees and operations in over 80 countries worldwide. The company competes in seven business segments with more than 300 brands, providing superior quality and value to customers and has a culture based on five basic values: Integrity, Passion for Winning, Leadership, Trust and Ownership.
However, it has only been in the last decade that P&G has become famous for it achievements as a significant global competitor in the goods industry, largely due to its innovation and lateral thinking in supply chain management. Originally, P&G adopted the traditional approach to supply chain where suppliers, manufacturers, distributors and retailers sequentially interact with each in a linear process flow perspective to fulfil consumer demand.
On evaluation of the case study, this report will outline how P&G has become a successful global player by first realigning their vision by focusing on the customer and working upstream in each supply chain thinking from a customers perspective – be it the retailer or end user.
The report will also provide a recommended action plan on how P&G can best progress to achieve its new found goals.
The Changing Dynamic of Retailer Power
P&G’s issues started in the early 1980´s when the need for change started to gain momentum with senior managers. A team of P&G managers were observing and understanding how the revolution in retailing through point of purchase, point of sale and technological advancements in operations and customer data management were starting to impact the
P&G Logistics Revolution: Co-creating Value
Introduction
This report analyses the case study titled “P&G’s Logistics Revolution – Co-creating Value”, which examines the growth of Proctor and Gamble in respect to its supply chain strategy and development in recent years.
Today, Proctor and Gamble (P&G) is a global company, with more than 138,000 employees and operations in over 80 countries worldwide. The company competes in seven business segments with more than 300 brands, providing superior quality and value to customers and has a culture based on five basic values: Integrity, Passion for Winning, Leadership, Trust and Ownership.
However, it has only been in the last decade that P&G has become famous for it achievements as a significant global competitor in the goods industry, largely due to its innovation and lateral thinking in supply chain management. Originally, P&G adopted the traditional approach to supply chain where suppliers, manufacturers, distributors and retailers sequentially interact with each in a linear process flow perspective to fulfil consumer demand.
On evaluation of the case study, this report will outline how P&G has become a successful global player by first realigning their vision by focusing on the customer and working upstream in each supply chain thinking from a customers perspective – be it the retailer or end user.
The report will also provide a recommended action plan on how P&G can best progress to achieve its new found goals.
The Changing Dynamic of Retailer Power
P&G’s issues started in the early 1980´s when the need for change started to gain momentum with senior managers. A team of P&G managers were observing and understanding how the revolution in retailing through point of purchase, point of sale and technological advancements in operations and customer data management were starting to impact the
Bibliography: Financial Times, 2008, P&G set to expand in emerging markets, viewed 20 April 2009. http://www.ft.com/cms/s/0/12913aca-c7ec-11dd-b611-000077b07658.html?nclick_check=1 Dr.J.Gattorna (2006), Living Supply Chains, Pearson Education Limited, Sydney. Supply Chain Network, 2007, P&G Selects Optiant For Multi-echelon Optimization and Inventory Placement, viewed 21 April 2009. http://www.supplychainnetwork.com/?p=201, Industry Week,18 Dec 2008, P&G builds supply chain for its future self, viewed 22 April 2009. http://forums.industryweek.com/archive/index.php/t-2097.html, Bizjournals.com, 13 December 2008, P&G blueprints future supply chain, viewed 22 April 2009 http://www.bizjournals.com/cincinnati/stories/2008/12/15/story1.html,