Scm of p&g

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Supply Chain Management, P&G, Business methods

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  • Notes:
    Supply chain involves everybody, from the customer all the way to the last supplier.
    Key flows in the supply chain are - information, product, and cash. It is through these flows that a supply chain fills a customer order. The management of these flows is key to the success or failure of a firm. Give Dell & Compaq example, Amazon & Borders example to bring out the fact that all supply chain interaction is through these flows.
  • Wal-Mart and P&G implemented a tremendously successful SCM
    System links Wal-Mart’s distribution centers directly to P&G’s manufacturing centers
    Each time a Wal-Mart customers purchases a P&G product, the system sends a message directly to P&G’s factory for a reorder
    Explain how Wal-Mart’s and P&G’s relationship would be affected if a catastrophic incident destroyed the SCM system?
    How would Wal-Mart reorder products?
    How would Wal-Mart send payments?
    How would P&G know which products to send to Wal-Mart?
  • Scm of p&g

    1. 1. Study and Analysis ofStudy and Analysis of Supply Chain activities ofSupply Chain activities of 2013
    2. 2. Let’s get to know P&G in briefLet’s get to know P&G in brief Industry Consumer goodsConsumer goods Headquarters Cincinnati, USACincinnati, USA Founded 18371837 Founders William Procter & James GambleWilliam Procter & James Gamble Products Foods, beverages, cleaning agents andFoods, beverages, cleaning agents and personal care productspersonal care products Revenue US$ 84.17 billion (2013)US$ 84.17 billion (2013) Net income US$ 11.31 billion (2013)US$ 11.31 billion (2013) Employees 121,000 (2013)121,000 (2013) Countries 160 countries.160 countries.
    3. 3. Flows in a Supply ChainFlows in a Supply Chain Customer Material Information Funds Supplier
    4. 4. SCM of P&GSCM of P&G  SCM contributes to the bottom line either by: Reducing the cost Increasing the sales  Manufacturing operations are based in(other than India): United States Canada Philippines Mexico Latin America Europe China (31 wholly owned factories) and other parts of Asia Africa Australia
    5. 5. Suppliers for P&GSuppliers for P&G  More than 80,000 suppliers  Suppliers of the Year:  Havpak Inc.  Hayco Ltd.  Nelson Packaging Company Inc.  Nippon Shokubai Company Ltd.  Novozymes  Pegas Nonwovens  News: seeking to pay its bills in 75 days from the average of 45 days  P&G Recognized As Supply Chain's "Best in Class" – Survey(IndustryWeek)  P&G is giving 6% margin to the distributor  P & G is spending 30-35 % of its sales in Advertisement and Promotion which is highest in the industry.
    6. 6. 7 Typical Distribution of P&G ProductsTypical Distribution of P&G Products Manufacturers Marketing Agents - State wise Wholesalers/Distributors Chemists Shops, Provision Stores , Retail Outlets, Big Markets etc
    7. 7. Example: DetergentExample: Detergent supply chainsupply chain CustomersCustomersSupermarketSupermarket Distribution Centers Distribution Centers P&GP&G Plastic cup Producer Plastic cup Producer Chemical manufacturer (e.g. Oil Company) Chemical manufacturer (e.g. Oil Company) PackagingPackaging Paper Manufacturer Paper Manufacturer Timber Industry Timber Industry Chemical manufacturer (e.g. Oil Company) Chemical manufacturer (e.g. Oil Company)
    8. 8. 3-9 Wal-Mart and P&G SCMWal-Mart and P&G SCM
    9. 9. Five Factors Motivating SupplyFive Factors Motivating Supply Chain RedesignChain Redesign 1. Deregulation of the transport norms: lowered transportation costs 2. Product compaction: more product per truckload 3. P&G's focus on TQM improved reliability and increased throughput at every plant 4. Decrease in product life cycles from 3-5 yr to 18-24 months 5. Corporate acquisitions gave P&G excess capacity
    10. 10. Supply Chain Initiatives of P&GSupply Chain Initiatives of P&G • Collaborative planning forecasting and replenishment (CPFR) Collaborative processes Integrated planning and forecasting processes Replenishment processes • Consumer Driven Supply network Efficient demand forecasting
    11. 11. Why P&G is better?Why P&G is better?  BRAND LOYALITY  DISTRIBUTION CHANNEL  INNOVATION  PRICING STRATEGY  QUALITY OF THE PRODUCT
    12. 12. Global CompetitorsGlobal Competitors
    13. 13. ChallengesChallenges Business Analytics team determined that manufacturing and raw-material costs dominated distribution costs by a very large margin. Distribution-location problem Transportation costs Uncertainty in demand and/or supply Changing customer requirements Decreasing product life cycles Cut Throat Competition: Price wars, Media buying, Retail space, Recession
    14. 14. ConclusionConclusion P&G is one of the largest and amongst the fastest growing consumer goods companies in India. P&G India now serves over 650 million consumers across India. P&G is the best overall company for leadership development. Fortune magazine awarded P&G a top spot on its list of "Global Top Companies for Leaders“

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