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Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
Proctor and gamble process reengineering   it perspective
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Proctor and gamble process reengineering it perspective

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  • 1. Avinash RRavi Pandey
  • 2.  One of the largest manufacturers supplying grocery to retailers and wholesalers Leader in designing how branded consumer-goods go to market Strong customer pull for P&G’s products Products were sold through multiple channels, with grocery retailers, wholesalers, mass merchandisers, and club stores
  • 3.  Recognizes the need to serve the needs of both the consumer and the channel in order to be successful Changes at P&G in affected both the company and the entire channel Focus on improving consumer value by eliminating non value-added processes in the channel
  • 4.  Swings in price were creating variability and massive inefficiency in the entire grocery supply chain Uncertainty in demand increased manufacturer inventory requirements and higher manufacturing costs Profit margins for the retailers were very low since costs were very high due to inefficient operations
  • 5.  The retailer provide P&G with daily data on warehouse orders received from the stores P&G uses the daily warehouse shipment data to determine warehouse replenishment volumes needed This would limit the retailers warehouse inventory to acceptable levels, eliminate costly LTL shipments, and reduce stock outs
  • 6.  EDI is used to transmit data from the retailer to P&G on warehouse product shipments to each store EDI is an enhancement for the CRP and it provided essential platform for CRP operations It is a powerful tool when combined with proper process reengineering It enabled transfer or large amount of error free data between companies
  • 7.  Benefits • Reduces transaction cost • Enables transfer of huge data • Error free transfer Threats • In case of problems, seeks manual intervention • Potential for huge errors without human buffer • Increases cost for P&G due to manual rework • Without CRP it is useless
  • 8.  Rewrote the entire ordering, shipping, and billing (OSB) system The OSB system supported pricing, ordering, shipping, invoicing, and separate credit systems The OSB integrated many systems that did not work well together across functions and product sectors The system was designed to eliminate manual processing steps and not to redesign the existing processes
  • 9.  Redesigning the ordering process involved a combination of systems and business process changes Shared database for product pricing and product specifications The batch processing system which was both inefficient and ineffective was upgraded
  • 10.  Benefits • Standardization of the process • Automation • Reduction of complexity • Reduction in error • Reduction in the cost of the processes Threats • Resistance to change • Time and cost of implementation
  • 11.  P&G led the grocery channel transformation Moved from brand management to category management Improvements in manufacturing and planning processes Created value to the customers
  • 12.  1993 - P&G sold CRP system to IBMs subsidiary (ISSC) The P&G CRP system was to be offered by IBM to all manufacturers IBM CRP service offering allowed retailers to interact with multiple vendors in a common format
  • 13.  Benefits • Standardization in the industry • Reduced barriers to CRP adoption • Reduced P&G’s cost of operation • Increased the base for P&G’s operations Threats • There were no economic benefits for P&G by outsourcing
  • 14.  IT can be a powerful tool when combined with efficient process reengineering IT can be used to reduce the complexity of processes thereby reducing the errors Outsourcing a process to a giant may increase the chances of adoption of the technology by masses

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