P&G is a large consumer goods company founded in 1837 that produces foods, beverages, cleaning agents and personal care products. In 2013, P&G had $84.17 billion in revenue and $11.31 billion in net income. P&G has over 121,000 employees operating in 160 countries with manufacturing locations worldwide including the US, Canada, Philippines, Mexico, Latin America, Europe, China and Africa. P&G's supply chain aims to reduce costs and increase sales through initiatives like collaborative planning with over 80,000 suppliers globally. The company faces challenges from manufacturing and raw material costs, demand uncertainty, and intense competition.

1. Study and Analysis ofStudy and Analysis of
Supply Chain activities ofSupply Chain activities of
2013

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.

4. Flows in a Supply ChainFlows in a Supply Chain
Customer
Material
Information
Funds
Supplier

5. 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

6. 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.

7. 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

8. 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)

9. 3-9
Wal-Mart and P&G SCMWal-Mart and P&G SCM

10. 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

11. 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

13. Why P&G is better?Why P&G is better?
 BRAND LOYALITY
 DISTRIBUTION CHANNEL
 INNOVATION
 PRICING STRATEGY
 QUALITY OF THE PRODUCT

14. Global CompetitorsGlobal Competitors

15. 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

16. 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“