Avinash RRavi Pandey
 One  of the largest manufacturers  supplying grocery to retailers and  wholesalers Leader in designing how branded  con...
 Recognizes   the need to serve the needs of  both the consumer and the channel in  order to be successful Changes at P&...
 Swings   in price were creating variability  and massive inefficiency in the entire  grocery supply chain Uncertainty i...
 The  retailer provide P&G with daily data on  warehouse orders received from the stores P&G uses the daily warehouse sh...
 EDI   is used to transmit data from the  retailer to P&G on warehouse product  shipments to each store EDI is an enhanc...
 Benefits  • Reduces transaction cost  • Enables transfer of huge data  • Error free transfer Threats  • In case of prob...
 Rewrote   the entire ordering, shipping, and  billing (OSB) system The OSB system supported pricing, ordering,  shippin...
 Redesigning   the ordering process involved  a combination of systems and business  process changes Shared database for...
 Benefits  • Standardization of the process  • Automation  • Reduction of complexity  • Reduction in error  • Reduction i...
 P&G   led the grocery channel  transformation Moved from brand management to  category management Improvements in manu...
 1993   - P&G sold CRP system to IBMs  subsidiary (ISSC) The P&G CRP system was to be offered  by IBM to all manufacture...
 Benefits  • Standardization in the industry  • Reduced barriers to CRP adoption  • Reduced P&G’s cost of operation  • In...
 IT can be a powerful tool when combined  with efficient process reengineering IT can be used to reduce the complexity o...
Proctor and gamble process reengineering   it perspective
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Proctor and gamble process reengineering it perspective

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Proctor and gamble process reengineering it perspective

  1. 1. Avinash RRavi Pandey
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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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