How did Walmart & P&G collaborate supply chain excellence to leverage business in the retail industry

1. THE EMERGENCE OF SCM EXCELLENCE
TEAM MEMBERS
Shalini Tripathy: DM16141
Supam Das: DM161
Ravi Agrawal: DM161
Apoorva Singhal: DM161
Hiranya Deshmukh: DM161

2. 19% think that 6% think that
47% think that 28% think that
SCM
Logistics
SCM
Logistics
SCM
Logistics Logistics SCM

3. Consumer
Manufacturing
plants
Distribution
centres
Logistics
Retail outlets
INFORMATION
INFORMATION
INFORMATION
CONSUMPTION

4.  Effective tool for reducing transaction costs.
 Better information sharing decreasing need
for excess inventory while increasing sales.
 Adds value to the customer service function.
 Decreased time and costs adds to the
competitiveness in the respective industry.

5. Adversarial
• P&G was too complex & inflexible
• It had 12 internal divisions
• Wal-Mart found it difficult to do business with
Transactional
• Focus on day to day sales
• No long term planning
• No customer needs identification
Fragmented
• No information sharing
• Activity limited to buying & selling function
• No dedicated team of P&G for Wal-Mart

6.  Better IOIS (Inter organizational information
sharing).
 Channel partnership.
 Category Management.
 Continuous replenishment.
 Process Co-ordination.
 EDI (Electronic data interchange).
 Collaborative planning forecasting
replenishment (CPFR).

7.  Wal-Mart & P&G shared long term business
partnership through total information sharing
to serve the mutual customer-the consumer.
 They used technology for channel partnership
 Joint scorecards
 POS data sharing
 Understanding consumer driven sales data
 Cost cutting through automation

8. P&G
DATA
WAL-MART
DATA
DATA DELIVERY HIGHWAY
Marketing
analysis
Activity
Based
costing
Replenishment
Data
sharing
Shelf
mgmt
Category
analysis
ProfitabilityMarketing

9.  Two companies were functionally interwoven
at multiple points
1) Buying & selling
2) Production & product development
3) Finance
4) Logistics
 The first collaboration was for JIT ordering of
disposable Pampers & Luvs diapers.

10.  Focus on efficient replenishment of products
 Part of ECR (Efficient consumer response)
Goals
Increased inventory turns
Decreased inventory levels
Decrease stock outs
Boost warehouse efficiency
Increase customer service value

12.  Standard for exchanging data via any
electronic means.
 Purchase orders, invoices, advanced shipment
notification, and financial payments can all be
managed through the EDI.
 Innovation of a price checking tool to improve
billing accuracy for accounts payable &
receivables.

13.  Understanding of the retailer, their customers
and the consumers who buy your brand.
 Integrating P&G market data, Wal-Mart POS
data and third party market data helped P&G
understanding consumer specific needs and
make decisions accordingly
 Critical for common expansion goals

14.  Strategy & Planning: The Joint Business Plan
then identifies the significant events.
 Demand & Supply Management: Sales
Forecasting, which projects consumer
demand at the point of sale
 Execution & analysis: Order generation &
fulfilment and performance assessment

15.  In 2009 Wal-Mart created a sustainability
index to meet the need for sustainable
produce practices
 They created a three stage process wherein
1) An initial Supplier Sustainability Assessment
program
2) The creation of a Lifecycle Analysis
Database
3) The finalization of the Index and a
presentation to customers

16.  Procter & Gamble and Wal-Mart will prioritize
reducing the "water per dose" for liquid
laundry detergent by 25 percent
 Wal-Mart has investments in renewable
energy, leaders in phasing out toxic
chemicals and creating the increasingly
influential Sustainability Index
 These are some of the examples of the retail
giant towards green business practices.

17.  Big bazaar and future group supply chains
working in tandem for their motto of low
price product offerings (isse sasta aur accha
aur kahin nahi)
 Channel partnership.
 Usage of new edge technology for
information & data sharing for managing
inventory & sales.

18.  Six software systems at work
1) ERP
2) Warehouse management system
3) Automatic print & apply system
4) Automatic packing
5) Online conveyor based weight check system
6) Sorting system

19. Q&A ???