Cut Costs Global Markets: Growth Drivers
Cut Costs Global Markets: Growth Drivers
No industry operates in a vacuum and none is self-sufficient. All industries require several inputs
to meet their marketing and production processes. However big a company may be, it rely on
other industries for some ingredients, product labels, containers, and shipping boxes, and more.
Not only the soap and detergent manufacturers must have access to vital inputs, they should also
seek low-cost suppliers as market forces direct them to cut costs. The rise of global markets may
help, and the purchasing professionals at soap and detergents companies are exploring foreign
regions, including those in developing countries, to find new sources of materials. Characteristics
of the labor market and physical infrastructure also affect and influence the performance of soap
manufacturers. In this section we will discuss some other factors-the structure of markets for non-
labor inputs and the availability of a research base-that are important to the industry.
Soap makers, even the largest ones, do not for the most part maintain their in-house chemical
production capabilities. They should therefore source and purchase their raw materials from other
suppliers. A recent trend among large soap and detergent companies is to reduce the number of
suppliers used, as a move that help to reduce costs and improve benefits. Known as "supplier
consolidation", this trend puts more business in the control of a group of fewer suppliers, thus
providing them greater incentive and benefit to offer superior service to their soap making
customers. In addition, it is apparently less costly and easier to deal with a small number of
suppliers for a given input. A negative effect of supplier consolidation is that different suppliers
have different strengths. While some may be excellent at ensuring timely deliveries of high quality
inputs and reacting to direct requests of the buyers, others may be very good at anticipating the
buyer's requirements or at offering providing auxiliary services, like inventory tracking. Therefore,
to implement a successful supplier consolidation strategy, a buyer must carefully weigh the
tradeoffs that may arise.
While soaps and detergents are generally not considered as high-technology products, the
companies are always looking for a breakthrough product to increase sales, because to have new
and high value products is the principal way to improve profitability. But as most of the biggest
soap makers in the world, have divested much of their chemicals strengths and capabilities, they
are turning to the suppliers of their raw materials to provide chemical expertise.
Beyond simply searching for efficient suppliers, soap manufacturers and their raw material
suppliers are expected to formulate more technology alliances over the next few coming years
than they have in the past. This requires the soap manufacturers to devise and formulate a new
culture, in which they will share information with their suppliers.
Growth Drivers
The chemicals industry manufacture not only basic and specialty chemicals, but also agro
chemicals, pharmaceuticals and consumer care products. Starting with raw materials such as oil,
fats, alkalis, minerals, gas, air and water, the chemicals industry converts these materials into a
wide range of substances for uses and applications by other chemical companies, other industries
and consumers. Soaps and Detergents are one of the oldest and major segments of the chemistry
business. These products are designed and formulated utilizing simple chemistry but have a high
degree of differentiation along the branding lines. Research and development costs are increasing
and rising and most of these products are becoming high-tech in nature. As consumer care
products we mean products, such as soaps, detergents, laundry aids, bleaches, hair care products,
skin care products, fragrances, and more.
Regulations: The soaps and detergent industry is one of the most regulated of all and in
addition to the regulation of its products, it is subject to several requirements that aim at
reducing the release of chemical substances into the environment during the process of
manufacturing. Such requirements generally include limitations (through regulations) on
the quantity of a substance, which can be released to the environment.
By Mary Bellis
Cascade
While employed by Procter & Gamble, Dennis Weatherby developed and received a
patent for the automatic dishwasher detergent known by the tradename Cascade. He
received his Masters degree in chemical engineering from the University of Dayton in 1984.
Cascade is a registered trademark of the Procter & Gamble Company.
Ivory Soap
A soap maker at the Procter and Gamble company had no idea a new innovation was
about to surface when he went to lunch one day in 1879. He forgot to turn off the soap
mixer, and more than the usual amount of air was shipped into the batch of pure white
soap that the company sold under the name The White Soap. Fearing he would get in
trouble, the soap maker kept the mistake a secret and packaged and shipped the air-
filled soap to customers around the country. Soon customers were asking for more "soap
that floats." When company officials found out what happened, they turned it into one of
the company’s most successful products, Ivory Soap.
Lifebuoy
The English company, Lever Brothers, an created Lifebuoy soap in 1895 and sold it as
an antiseptic soap. They later changed its name to Lifebuoy Health Soap. Lever Brothers
first coined the term "B.O." for bad odor as part of their marketing company for the
soap.
Liquid Soap
William Shepphard first patented liquid soap on August 22, 1865. In 1980, the
Minnetonka Corporation introduced the first modern liquid soap called SOFT SOAP brand
liquid soap. Minnetonka cornered the liquid soap market by buying up the entire supply
of the plastic pumps needed for the liquid soap dispensers. In 1987, the Colgate
Company acquired the liquid soap business from Minnetonka.
Palmolive Soap
William Colgate started a candle and soap making company in New York City in 1806. By
1906, the company was making over 3,000 different soaps, perfumes and other
products. For example, Colgate Dental Cream was introduced in 1877. In 1864, Caleb
Johnson founded a soap company called B.J. Johnson Soap Co., in Milwaukee. In 1898,
this company introduced a soap made of palm and olive oils, called Palmolive. It was so
successful that that the B.J. Johnson Soap Co. changed their name to Palmolive in 1917.
Another soap making company called the Peet Brothers Co. of Kansas City started in
1872. In 1927, Palmolive merged with them to became Palmolive Peet. In 1928,
Palmolive Peet merged with Colgate to form Colgate-Palmolive-Peet. In 1953, the name
was shortened to just Colgate-Palmolive. Ajax cleanser was one of their first major brand
names introduced in the early 1940s.
Pine-Sol
Chemist, Harry A. Cole of Jackson, Mississippi invented and sold the pine-scented
cleaning product called Pine-Sol in 1929. Pine-Sol is the biggest selling household
cleaner in the world. Cole sold Pin-Sol shortly after its invention (now owned by Clorox
Company) and went on to create more pine oil cleaners called FYNE PINE and PINE
PLUS. Together with his sons, Cole started the H. A. Cole Products Co. to manufacture
and sell his products. Pine forests surrounded the area where the Coles lived, providing
an ample supply of pine oil.
S.O.S Soap Pads
In 1917, Ed Cox of San Francisco, an aluminum pot salesman, invented a pre-soaped
pad with which to clean pots. As a way of introducing himself to potential new
customers, Cox made the soap incrusted steel-wool pads as a calling card. His wife
named the soap pads S.O.S. or "Save Our Saucepans." Cox soon found out that the
S.O.S pads were a hotter product than his pots and pans.
Tide
In the 1920s, Americans used soap flakes to clean their laundry. The flakes performed
poorly in hard water, leaving a ring in the washing machine, dulling colors, and turning
whites gray. Procter & Gamble began an ambitious mission to change the way Americans
washed their clothes. Researchers discovered two-part molecules which they called
synthetic surfactants. Each part of the "miracle molecules" executed a specific function--
one pulled grease and dirt from the clothes, while the other suspended dirt until it could
be rinsed away. In 1933, this discovery was introduced in a detergent called "Dreft," but
it could only handle lightly soiled jobs. The next goal was to create a detergent that
could clean heavily soiled clothes. That detergent was Tide®.
Created in 1943, Tide detergent was the combination of synthetic surfactants and
"builders." The builders helped the synthetic surfactants penetrate the clothes more
deeply to attack greasy, difficult stains. Tide was introduced to test markets in October
1946 as the world’s first heavy-duty detergent. Consumer response was immediate and
intense. Tide detergent outsold every other brand within weeks. It became so popular
that store owners were forced to limit the quantity purchased per customer.
Tide detergent was improved 22 times during its first 21 years on the market, and
Procter & Gable still strives for perfection. Each year, researchers duplicate the mineral
content of water from all parts of the United States and wash 50,000 loads of laundry to
test Tide detergent’s consistency and performance.
Environmental factors
Soap is designed as a product to be used once and then flushed down the drain, so as expected,
the environmental implications of soap manufacturing process are not nearly as important as its
several other chemical processes. The two prime areas of concern include
Therefore, it becomes a prime responsibility of all soap & detergents manufacturers that not only
they use natural and/or such ingredients that are not harmful to environment but also take care
while transporting these raw materials as well as minimize their ill effects during soap
manufacturing process
Steps for Environment Safety during Soap Manufacturing
The three prime soaps detergents ingredients by volume & cost are perfumes, caustic and oil. Oils
&perfume are insoluble in water and if spilled can create problems, although the oils do solidify at
room temperature. These products are transported through trained carriers, and the equipment
and systems for pumping from the truck are designed carefully. Perfumes are bought in lined steel
drums that are adequately robust, and flammable perfumes are not used in the manufacturing of
soaps.
All the storage tanks are surrounded by bunds to catch the contents of the tank, in case it rupture
or valve get failed. When the storage systems are designed, the different safety features (like
access to tank and valve) are designed in, as well as processes to deal with the product in case it
end up in the bunded area.
Inside the plant, all the process and operational areas are also bunded, and the trade waste is
piped to an interception tank before draining to the council's trade waste system. The contents of
the interception tank are consistently monitored for alkalinity or acidity, and are designed to
maintain solids or light phase chemicals in right amount. If in the case, a spill is observed in the
plant itself, a part of the interception tank can be isolated off and the consequences of the spill
neutralized before the waste is dumped.
In various cases and applications, however, potential problems can be detected and stopped
before they actually happen. At times, an off-spec product can be recycled and blended rather
than dumped, and even the wastewater can be reprocessed minimize the discharges from the
plant.
In some cases, the manufacturing method itself can be closely monitored to ensure that any losses
or wastes are kept to a minimum. Consistent measurement of key characteristics, like - electrolytic
levels and the moisture both assure that the end product is being designed to specifications and
the technique is functioning properly as it was designed to. Hence by following these simple tips,
losses in the plant can indirectly be minimized by monitoring the process.
Environmental Implications of Detergents
The manufacturing of detergent powders has some specific environmental issues, which are not
associated with other industries. These critical environmental issues of detergent manufacturing,
include -
Dust control
Volatile organic emissions
Dust present during production and transfer of the bulk powdered detergent (and powdered raw
materials) can be a serious problem. Dry and wet cyclones are used to separate out most of the
dust and all the emissions are carefully monitored. If the level of dust exceeds the acceptable
limits, suitable remedial action should be taken. Dust levels in emissions should be kept below 50
mg m-3.
Eco Friendly Soaps and Detergents
Many soap and detergents manufacturers now make environmental friendly products, thanks to
the rising awareness of the general population as well as safety norms introduced by governments
of many countries. Apart from natural soaps, there are biodegradable soaps and detergents that
can be called eco friendly cleaning products.
The sodium lauryl ether sulphates that are used in liquid detergents, soaps and shampoos are
highly biodegradable as they made from either natural or synthetic linear C12 - C15 alcohols.
The use of detergents can never be a completely non-polluting activity. The consumers need to
understand that the small detergent products can also be the least polluting ones and must press
for the implementation of labeling standards and regulations so that they can avail
of environmentally friendly cleaning products. The use of detergents free from non-essential
additives like perfumes, color and brightening agents in minimal packaging will go a long way in
assuring healthier and cleaner environment.
Environmental/Health Sustainability
The Soap and Detergent manufacturers can contribute to the enhancement of human health and
quality of life by adopting responsible formulations and through the production and sale of
environment friendly cleaning products & ingredients. Some initiatives, which soap and detergent
manufacturers can take for environment / health sustainability are -
To only market products, which have proved to be safe for humans and the environment
While production, the manufacturers should carefully consider the potential health and
environmental effects, exposures and releases, which will be associated with the
production, transportation, use and disposal of different cleaning products
To follow the spirit and intent of all national laws and regulat