Supply chain Management of P&G
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P&G started its supply chain from store shelves and moved back to its suppliers.
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Supply chain Management of P&G
- 3. SUPPLY CHAIN MANAGEMENT Strategic fit and drivers of the Procter & Gamble Presented By : 1. Daniyal Raza 2. Saad Chowdary 3. Mehak Hamiid 4. Fatima Rani Date:-26-july-2017
- 4. Contents P&G introduction History of P&G Product line of P&G Supply chain strategies DISTRIBUTION Channel of p&g Drivers Conclusion Reference
- 5. The Procter & Gamble Company, also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, USA. Its products include pet foods, cleaning agents and personal care products. Introduction:-
- 6. P&G History: A Legend of Firsts 1837 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati 1859 P&G sales reach $1 million
- 7. Continue….. 1879 The inexpensive, but high-quality Ivory soap is introduced 1924 P&G is one of the first to create a market research department to study consumer preferences and buying habits
- 8. Continue…. 1961 Pampers is introduced and eventually replaces cloth diapers 1980 Sales reach $10 billion Today P&G operates in 80 countries worldwide, employing more than 100,000. Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.
- 9. Overview Procter & Gamble (P&G) manufactures a wide range of consumer goods. In 2011, P&G recorded $82.6 billion dollars[4 lakh crores] in sales. Fortune magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010. P&G is credited with many business innovations including brand management and "Connect & Develop" innovation. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company.
- 10. Mehak Hamid
- 11. David Taylor is the current president and CEO of Procter & Gamble.
- 12. Product Line:-A group of closely-related product items. Product line 1 Product line2 Product line3 Beauty n grooming brands Health n well being brands House hold care brands 1.Olay 2.sk-2 3.Venus 4.Pantene 5.Wella 6.Head n shoulder 7.Rejoice 8.Dolce n gabbana 9.Safegauard 10.Covergirl 11.Hugo boss 12.braun 1.Eukanuba 2.Always 3.Pringles 4.Vicks 5.oral-b 6.Lams 7.Tampax 8.Crest 9.Prilosec otc 10.Nuturella 11.Whisper 12.ausonia 1.Tide 2.Bold 3.Dawn 4.Dash 5.Charmin 6.Downy 7.Febreze 8.Pamper 9.Duracell 10.mr.clean 11.Ace 12.Ariel
- 14. Supply Chain Strategies Two types of supply chain strategies are as follows:- 1) Efficient strategy: Minimum input and get maximum output. 2) Responsive Strategy: immediate response to consumer/early as possible
- 15. Basic Channels of Distribution Manufacturers/products Agents Wholesalers/distributors RetailersRetailers Consumers and organizational end users
- 16. Distribution criteria: Ordering Speed:- It is the time taken after the manufacturing of product and the time till it reaches the consumer. Delivery Flexibility:- How easy to distribute the product. Personal Selection And Customization:- Which distribution channel to select
- 17. 17 Typical Distribution of P&G Products Manufacturers (PGHH Ltd.India) Marketing Agents - State wise Retailers/Wholesalers/Distributors Chemists Shops, Provision Stores , Retail Outlets, Big Markets etc
- 18. Saad Rafiq
- 19. Drivers:- 1. Facilities:- are the actual physical locations in the supply chain network where product is stored, assembled, or fabricated. The two major types of facilities are production sites and storage sites. Decisions regarding the role, location, and flexibility of facilities have a significant impact on the supply chain's performance.
- 20. P&G Facilities:- P&G has operations in about 80 countries. P&G's well-known, trusted brands touch the lives of consumers in more than 180 countries. Follow the responsive Strategy
- 21. 2. Transportation entails moving inventory from point to point in the supply chain.
- 22. P&G Transportation Moving in the right direction We don't want to just transport our products from point A to point B. We want to cover that distance in the most efficient and socially responsible way possible. Procter & Gamble's collaborative transport with Tesco August 2009. Using responsive strategy
- 24. 3. Information consists of data and analysis concerning facilities, inventory, transportation, costs, prices, and customers throughout the supply chain. Information is potentially the biggest driver of performance in the supply chain because it directly affects each of the other drivers.
- 25. P&G Information Hear how Amruta helped redesign an innovation lab that enables teams to translate big data into key insights
- 26. Published on Jan 19, 2017 A Day in Information Technology at P&G Europe Follow a responsive strategy
- 27. Fatima Rani
- 28. 4. Inventory encompasses all raw materials, work in process, and finished goods within a supply chain.
- 29. P&G Inventory: Procter & Gamble has reduce its inventory investment by two-step process:- . First, spreadsheet-based inventory models Second, implemented multiechelon inventory optimization software to minimize inventory costs Following efficient strategy
- 30. 5. Sourcing is the choice of who will perform a particular supply chain activity such as production, storage, transportation, or the management of information. At the strategic level, these decisions determine what functions a firm performs and what functions the firm outsources.
- 31. P&G Sourcing We are committed to no deforestation in our sourcing of palm oil, palm kernel oil. Our Commitment P&G is committed to ensuring that our sourcing of palm oil, palm kernel oil does not contribute to deforestation and respects the rights of workers and indigenous peoples
- 32. 6. Pricing determines how much a firm will charge for goods and services that it makes available in the supply chain. Pricing affects the behavior of the buyer of the good or service, thus affecting supply chain performance.
- 33. Different pricing strategies adopted by p&g Optional-features pricing Product-line pricing Cost-plus pricing Competitive pricing Distribution pricing
- 34. Promotion strategy P&G insists on a pull strategy Heavy advertising and media pioneer Advertising creativity P&G – A click mortar company Coupon
- 35. As we know this market is known as FMCG market so there are many competitor in this time in the market so P&G company were focused in this time and target the middle class segment for increasing the sales as well as market shares . Some products like Gillette is made by the company to target the higher segment of the market. CONCLUSION
- 36. Referance: http://www.wikiswot.com/SWOT/3_Consumer_Packaged_Goods_(C PGs)/Procter_and_Gamble.html http://wiki.answers.com/Q/Swot_analysis_of_procter_gamble http://www.corporatewatch.org/?lid=247 http://www.cisco.com/warp/public/779/ibs/solutions/supply/pgcasestu dy1.pdf http://www.emory.edu/BUSINESS/dra/PGsmartersupplychain.pdf http://www.business-standard.com/india/news/with-pringles-buy- kelloggs-haslarger-canvas-in-india/464942/ http://www.pg-india.com/
Editor's Notes
- 17
- Jul 20, 2011 Neill Porter, Transport Operations Manager at Procter & Gamble gives an overview of the collaboration between themselves, Tesco and Eddie Stobart which has enabled P&G thttps://youtu.be/Vi6WQabzZjco reduce its lead time for the entire Tesco delivery network within the UK - part of the Agile Supply Chain Research Club Speaker Series: http://bit.ly/eFW8Oa As one of the world’s largest consumer products companies, we ship a significant amount of product. To help ensure we are driving efficiency, our 2020 goal is to reduce truck transportation kilometers by 20% per unit of production versus our 2010 baseline. Our global teams have made great progress and have reduced over-the-road truck transportation by 25% since 2010 by improving vehicle fill rate, optimizing distribution routes and driving increased use of multi-modal transportation. As P&G completes work on a significant supply chain transformations in North America, and innovative efficiency projects in other regions we will look for additional opportunities to improve our transportation footprint. In Europe, we're tapping R&D technology to combine our outgoing finished-product shipments with our suppliers' incoming raw material shipments, saving time, money and CO2 emissions. Typically, such shipments are headed in opposite directions; yet often they overlap. Finding those cross points has understandably been difficult. But, our Europe teams took on the challenge. By applying P&G modeling and simulation technology, we have found a more consistent way to match shipments, and last year, reduced empty truck miles in the region by approximately 5%, reducing CO2 and congestion in our communities while also delivering tangible transportation savings. We're now looking to expand the work.
- Over the past 10 years, Procter & Gamble has leveraged its cross-functional organizational structure with operations research to reduce its inventory investment. Savings were achieved in a two-step process. First, spreadsheet-based inventory models locally optimized each stage in the supply chain. Because these were the first inventory tools installed, they achieved significant savings and established P&G's scientific inventory practices. Second, P&G's more complex supply chains implemented multiechelon inventory optimization software to minimize inventory costs across the end-to-end supply chain. In 2009, a tightly coordinated planner-led effort, supported by these tools, drove $1.5 billion in cash savings. Although case studies show the mathematics employed, of equal importance is the presentation of the planning process that facilitates inventory management and the decision tree that matches a business to the optimal inventory tool depending on the requirements of the business. Today, more than 90 percent of P&G's business units (about $70 billion in revenues) use either single-stage (70 percent) or multiechelon (30 percent) inventory management tools. Plans are underway to increase the use of multiechelon tools to manage 65 percent of P&G's supply chains in the next three years.
- P&G’s new goals call for ensuring no deforestation in its entire palm supply chain. Specific commitments include: Establish traceability of palm oil and palm kernel oil to supplier mills by December 31, 2015. ACHIEVED Ensuring no deforestation in the palm supply chain to plantations by 2020. For palm oil, require suppliers to submit plans by December 31, 2015, that demonstrate how they will ensure no deforestation in the supply chain for their mills by 2020. COMPLETED For palm kernel oil, begin investing in and working with small farmers, with the aim of improving their practices to ensure no deforestation in the supply chain by 2020. Working with suppliers, industry peers, NGOs, academic experts and other stakeholders to promote consistent industry standards and practices for sustainable palm oil sourcing. Continuing to support universal human rights as outlined in P&G’s existing Sustainability Guidelines for Suppliers, and to support the rights of indigenous people. Reporting annually on progress toward achieving these goals. VIEW MORE IN THIS SECTION: Details on our Palm Oil Policy Palm oil is an important and versatile vegetable oil that is used as a raw material for both food and non-food industries. Palm is a highly productive crop, requiring much less land use than alternatives, and can contribute to economic development and poverty alleviation in regions where it is produced. These positive attributes have driven a significant increase in the global demand for palm oil and led to rapid expansion of palm plantations. In some regions of the world, the rapid expansion of palm oil production has threatened environmentally sensitive areas of tropical forests and peatlands and has resulted in some incidents where the rights of workers and indigenous peoples have been infringed. P&G uses relatively little palm oil, but we do use a by-product of palm oil production called palm kernel oil. Our combined use of palm oil, palm kernel oil and derivatives of each represents less than 1% of worldwide production. While our overall use is small, we recognize our responsibility to ensure our sourcing of palm-derived materials does not contribute to deforestation or infringe upon the rights of workers and indigenous peoples. Our Commitment P&G is committed to ensuring that our sourcing of palm oil, palm kernel oil and derivatives does not contribute to deforestation and respects the rights of workers and indigenous peoples. P&G is a member of the Roundtable on Sustainable Palm Oil (RSPO), and we will continue to support RSPO standards as a key mechanism to drive responsible palm practices across the industry. Given the continued pressure on forests and peatlands, we recognize the need to take additional steps beyond RSPO to confirm the palm-derived materials we purchase are not contributing to deforestation. Therefore,to ensure no deforestation in our palm supply chain, we will: Develop a traceable supply chain Ensure our suppliers meet RSPO criteria and can ensure: No development of High Conservation Value (HCV) areas and High Carbon Stock (HCS) forests No new development of peat lands regardless of depth. No burning to clear land for new development or replanting. They meet expectations of P&G’s existing Sustainability Guidelines for Suppliers Respect for human and labor rights Respect land tenure rights, including rights of indigenous and local communities to give or withhold their free, prior and informed consent for development of land they own legally, communally or by custom Work with suppliers, industry peers, NGOs, academic experts and other stakeholders to promote consistent industry standards and practices in palm oil sourcing with the aim of achieving full traceability and eliminating deforestation. Our Actions To ensure we drive measurable progress against the commitments outlined above, we will take the following actions. Palm oil and palm oil fractions. The following actions will apply to our purchases of palm oil and palm oil fractions: We have established traceability to palm oil mills by December 31, 2015. We have required suppliers to submit plans by December 31, 2015, to demonstrate how they will ensure no deforestation in their supply chain by 2020. As we advance progress against the goals above, we also will continue to purchase 100% RSPO certified palm oil. Palm kernel oil. The following actions will apply to our purchase of palm kernel oil: We have established traceability to palm kernel oil mills by December 31, 2015. We will invest in and work with palm kernel oil suppliers, and the smallholders who supply them, with the aim of improving both practices and livelihoods to establish zero deforestation in our supply chain by 2020. We will work quickly over the next six months to define the details of this approach and will then communicate our plans. Palm oil derivatives and palm kernel oil derivatives We will require suppliers to put forward time-bound plans by the end of 2016 to demonstrate how they will ensure no deforestation in their supply chains. We will continue to work with the Consumer Goods Forum and other stakeholder groups to promote efforts for consistent industry standards and processes aimed to achieve traceability and eliminate deforestation. We will report progress on each of these targets at least annually via our sustainability report.