SCM Analysis Presenter: John Ant 04/06/09 Course: Supply Chain Management Gillette Supply Chain Basic Analysis

ONE FACE TO THE COSTUMER Gillette  Mission around the world Mission

The Timeline of Gillette Gillette Around the World Gillette Segments Sales Before change world & Europe SCM. Problem in current SCM After changing Europe & world SCM. Conclusion & Summery Bibliography Table of contents

The Timeline of Gillette

Gillette Around the World

Gillette Segments Sales

Before change world & Europe SCM.

Problem in current SCM

After changing Europe & world SCM.

Conclusion & Summery

Bibliography

1901: American Safety Razor is founded by King C. Gillette. 1904: King Gillette's safety razor is patented. 1918: Gillette manufacturers razors and blades for soldiers during World War I. 1942: The Cavalcade of Sports program is formed to oversee the company's various advertising and promotional activities in athletics. 1967: Braun AG is acquired. 1971: Company is organized into four domestic divisions: The Safety Razor Division; The Toiletries Division (featuring Right Guard antiperspirant); The Personal Care Division; and The Paper Mate division. 1991: Gillette ranks 20th among the Fortune 500. 1996: The company acquires battery manufacturer Duracell . 2005: The company merger with P&G. http://www.fundinguniverse.com/company-histories/The-Gillette-Company-Company-History.html Slide 4 out of 12 History

1901: American Safety Razor is founded by King C. Gillette.

1904: King Gillette's safety razor is patented.

1918: Gillette manufacturers razors and blades for soldiers during World War I.

1942: The Cavalcade of Sports program is formed to oversee the company's various advertising and promotional activities in athletics.

1967: Braun AG is acquired.

1971: Company is organized into four domestic divisions: The Safety Razor Division; The Toiletries Division (featuring Right Guard antiperspirant); The Personal Care Division; and The Paper Mate division.

1991: Gillette ranks 20th among the Fortune 500.

1996: The company acquires battery manufacturer Duracell .

2005: The company merger with P&G.

Gillette  Distribution around the World A Generic cycle process according to different bibliography sources Slide 5 out of 12 World Wide

The Total Income in 2005: 6 B$ - Gillette, Duracell, Braun 4 B$ - Oral-B Total : 10 B$ Segmentation of Sales: Slide 6 out of 12 www.wikinvest.com The Share

The Total Income in 2005:

6 B$ - Gillette, Duracell, Braun

4 B$ - Oral-B

Total : 10 B$

Segmentation of Sales:

Raw Material Service Suppliers Sub contractor purchasing Contract Management Contracts & Purchasing Subcontractor Management Distributor Center Distributor assembling Warehouse Warehouse Collaboration Gillette Braun Duracell Oral B Logistic Management Parker Pen Gillette Braun Duracell Oral B Production Engineering Parker Pen Plan, Measure & Control General & Administration Configuration Catalogue Maintenance MRP & Inside Integration Retail Wholesaler External Partner Internal Partner Operational & Purchasing Management Gillette  World SCM - Before Plan Measure Plan Measure Plan Measure Plan Measure Parts Finished Product Finished Product Plan Measure Measure Plan Measure Plan Plan Measure Plan Measure ERP & CRM & DSS Sales & Service & Financial Plan Measure Plan Measure Customer Financing Control Financing Control Financing Control A Generic cycle process according to different bibliography sources

Contract Contact RFP Operating Logistics Master Planning Finishing good inventory Pre factory Operation Purchasing Subcontractor Sales forecasting Factory Operation Order Processing Transportation & Storage Warehousing Distribution Packing Design Delivery Goods Wholesaler Retail MRP Supporting System Computer Design I.T Support Cycle Order In Detail Duration Decision Making 0.5-1d 0.5-1d 1-10d 0.5-5d 0.5-3d 0d 0d 5-20d Headquarters Headquarters Headquarters Factory Factory Warehouse IT System Total L.T A Generic cycle process according to different bibliography sources Packing Design 78% Order fill Average Q/N 5/L 61 61 13 5/L 19 5/L Strategy SRM – PUSH – M.T.S & S.K.U Slide 8 out of 12

The total L.T is too much long to stay in game. No optimization of the allocation of resources. There are to many decisions making in process. The Location of Warehousing & Distribution aren’t efficient. Low satisfaction form Customer (Retailer). The infrastructure don’t support centralization of goods ( Distributor Integration). A Generic cycle process according to different bibliography sources Slide 9 out of 12 Rethinking Process

The total L.T is too much long to stay in game.

No optimization of the allocation of resources.

There are to many decisions making in process.

The Location of Warehousing & Distribution aren’t efficient.

Low satisfaction form Customer (Retailer).

The infrastructure don’t support centralization of goods ( Distributor Integration).

Contract Contact RFP Operating Logistics Master Planning Finishing good inventory Pre factory Operation Purchasing Subcontractor Sales forecasting Factory Operation Order Processing Transportation & Storage Warehousing Distribution Cross Docking Delivery Goods Wholesaler Retail MRP Supporting System Computer Design I.T Support Cycle Order In Detail Duration Decision Making 0.5-1d 0.5d 0.5d 0.5d 0.5d 0d 0d 2-3d Headquarters Headquarters Headquarters Factory Factory IT System Total L.T A Generic cycle process according to different bibliography sources Packing Design 98% Order fill Average Q/N 47 47 8 5 5/E Strategy SRM –PULL/ PUSH –M.T.O & S.K.U 5/E 5/E Slide 10 out of 12 Warehouse 61 61 13 19 5/L 5/L 5/L

Raw Material Service Suppliers Sub contractor purchasing Contract Management Contracts & Purchasing Subcontractor Management Cross Docking Distributor Center Distributor Integration Warehouse Warehouse Collaboration Gillette Braun Duracell Oral B Logistic Management Parker Pen Gillette Braun Duracell Oral B Production Engineering Parker Pen Plan, Measure & Control General & Administration Configuration Catalogue Maintenance MRP & Inside Integration Retail Wholesaler External Partner Internal Partner Operational & Purchasing Management Gillette  World SCM - After Plan Measure Plan Measure Plan Measure Plan Measure Parts Finished Product Finished Product Plan Measure Measure Plan Measure Plan Plan Measure Plan Measure ERP & CRM & DSS Sales & Service & Financial Plan Measure Plan Measure Customer Financing Control Financing Control Financing Control A Generic cycle process according to different bibliography sources CPFR RFID RFID

The Main SCM changes are: Changing to PULL/PUSH Strategy. Creating optimization of the allocation of resources and improving the add value chain. Using the CPFR approach to minimize inventory. Centralization of decisions making. Consolidation of process to establish one face to customer. Consolidation of IT systems and SCM technology to found reliability infrastructure. The Bottom Line Slide 12 out of 12

The Main SCM changes are:

Changing to PULL/PUSH Strategy.

Creating optimization of the allocation of resources and improving the add value chain.

Using the CPFR approach to minimize inventory.

Centralization of decisions making.

Consolidation of process to establish one face to customer.

Consolidation of IT systems and SCM technology to found reliability infrastructure.

KING CAMP GILLETTE THE CO-FOUNDER OF GILLETTE The Spark Patent drawing of the Razor “ The Man and His Wonderful Shaving Device” The pictures from: http://en.wikipedia.org/wiki/King_C._Gillette

Hagstorm, R. G., (2004). The Warren Buffett Way (2 th ed.) ,John Wiley & Sons, Inc, 132 , pp. 69-70 . Blanchard, D., (2007). Supply Chain Management Best Practice , John Wiley & Sons, Inc, pp. 145-148 . Mckibben, G., (2007). Cutting edge – Gillette's Journey to global leadership, Harvard school press, Boston, MA, pp. 145-148 . Horn,S. S., Faulkenr. D., (2000). The dynamics of International strategy , T homson, pp.7-8. Cassia, L. Fattore, M. & Paleari, S, (2006) Entrepreneurial strategy – Emerging Business in declining industries , Edward Elgar Publishing, pp. 114-120 . Taylor, D. A., (2004). Supply chains – a manager's guide, Addison-Wesley, pp.4, 51. Slater, D., (15/10/1997). Smooth operator – the global enterprise, CIO enterprise press, pp.60-65. Srinivasan, R., (2005). International markets (3 th ed.), Eastern economy edition, pp.222-227. Van Weele, A. J., (2005). Purchasing & supply chain management (4 th ed.), T homson, and pp.76-77. Taylor, D. H., (1997). Global cases in logistics and supply chain management, Cengage Learning EMEA, pp. 38-46 . Sources: Adapted from "Gillette Sharpens Collaboration, " industry Week, August 13, 2001, pp 22-23. And David Gianatssio, "Gillette Starts Review of vendors, " Adweek, June 11, 2001, pp. 46-47. Lambert, D. M., (2008), Supply Chain Management: Processes, Partnerships, Performance (4 th ed.), ‏ Supply Chain Management Inst, pp. 82-84 . O'Connor, M. C., (03/2006), Gillette Fuses RFID with product Launch, ‏ RFID Journal Schary, P. B., Schary, T. S., Mikkola, J. H. & Kotzab, H., (2007), Managing the global supply chain (3 th ed.), ‏ Copenhagen Business School Press DK, pp.129-130, 138, 152, 157, 164,167, 172, 44,102. Mahajan, V, (2008). Africa rising , pp. 89 . Bibliography

Hagstorm, R. G., (2004). The Warren Buffett Way (2 th ed.) ,John Wiley & Sons, Inc, 132 , pp. 69-70 .

Blanchard, D., (2007). Supply Chain Management Best Practice , John Wiley & Sons, Inc, pp. 145-148 .

Mckibben, G., (2007). Cutting edge – Gillette's Journey to global leadership, Harvard school press, Boston, MA, pp. 145-148 .

Horn,S. S., Faulkenr. D., (2000). The dynamics of International strategy , T homson, pp.7-8.

Cassia, L. Fattore, M. & Paleari, S, (2006) Entrepreneurial strategy – Emerging Business in declining industries , Edward Elgar Publishing, pp. 114-120 .

Taylor, D. A., (2004). Supply chains – a manager's guide, Addison-Wesley, pp.4, 51.

Slater, D., (15/10/1997). Smooth operator – the global enterprise, CIO enterprise press, pp.60-65.

Srinivasan, R., (2005). International markets (3 th ed.), Eastern economy edition, pp.222-227.

Van Weele, A. J., (2005). Purchasing & supply chain management (4 th ed.), T homson, and pp.76-77.

Taylor, D. H., (1997). Global cases in logistics and supply chain management, Cengage Learning EMEA, pp. 38-46 .

Sources: Adapted from "Gillette Sharpens Collaboration, " industry Week, August 13, 2001, pp 22-23. And David Gianatssio, "Gillette Starts Review of vendors, " Adweek, June 11, 2001, pp. 46-47.

Lambert, D. M., (2008), Supply Chain Management: Processes, Partnerships, Performance (4 th ed.), ‏ Supply Chain Management Inst, pp. 82-84 .

O'Connor, M. C., (03/2006), Gillette Fuses RFID with product Launch, ‏ RFID Journal

Schary, P. B., Schary, T. S., Mikkola, J. H. & Kotzab, H., (2007), Managing the global supply chain (3 th ed.), ‏ Copenhagen Business School Press DK, pp.129-130, 138, 152, 157, 164,167, 172, 44,102.

Mahajan, V, (2008). Africa rising , pp. 89 .

Thank for attention Questions