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    Case Study Procter and Gamble Uses Business Analytics To Redesign Its Supply Chain

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    Louie-Al Vontroy Benito
    Procter and Gamble uses business analytics to redesign its supply chain. P&G has over 300 brands of consumer goods that it sells in 140 countries through operating units in 58 countries. It aims to streamline processes, reduce costs, eliminate duplication, and rationalize manufacturing and distribution. The recommended solution is to implement business analytics to forecast demand, source and distribute products efficiently through data analysis. Business analytics would involve dividing the overall supply chain problem into sourcing and distribution subproblems to make them easier to solve. This would help P&G address its supply chain issues and meet its objectives.

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    Case Study Procter and Gamble Uses Business Analytics To Redesign Its Supply Chain

    Uploaded by

    Louie-Al Vontroy Benito
    240 views3 pages
    Procter and Gamble uses business analytics to redesign its supply chain. P&G has over 300 brands of consumer goods that it sells in 140 countries through operating units in 58 countries. It aims to streamline processes, reduce costs, eliminate duplication, and rationalize manufacturing and distribution. The recommended solution is to implement business analytics to forecast demand, source and distribute products efficiently through data analysis. Business analytics would involve dividing the overall supply chain problem into sourcing and distribution subproblems to make them easier to solve. This would help P&G address its supply chain issues and meet its objectives.

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    Procter and Gamble uses business analytics to redesign its supply chain. P&G has over 300 brands of consumer goods that it sells in 140 countries through operating units in 58 countries. It aims to streamline processes, reduce costs, eliminate duplication, and rationalize manufacturing and distribution. The recommended solution is to implement business analytics to forecast demand, source and distribute products efficiently through data analysis. Business analytics would involve dividing the overall supply chain problem into sourcing and distribution subproblems to make them easier to solve. This would help P&G address its supply chain issues and meet its objectives.

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    Download as docx, pdf, or txt
    240 views3 pages

    Case Study Procter and Gamble Uses Business Analytics To Redesign Its Supply Chain

    Uploaded by

    Louie-Al Vontroy Benito
    Procter and Gamble uses business analytics to redesign its supply chain. P&G has over 300 brands of consumer goods that it sells in 140 countries through operating units in 58 countries. It aims to streamline processes, reduce costs, eliminate duplication, and rationalize manufacturing and distribution. The recommended solution is to implement business analytics to forecast demand, source and distribute products efficiently through data analysis. Business analytics would involve dividing the overall supply chain problem into sourcing and distribution subproblems to make them easier to solve. This would help P&G address its supply chain issues and meet its objectives.

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    CASE STUDY

    Procter and Gamble Uses Business Analytics to Redesign its Supply Chain

    Procter and Gamble is the Worldwide market leader in laundry detergents, diapers,
    feminine protection pads, shampoos, facial moisturizers, acne teen skin care products, and fabric
    softeners. They have 300 brands of consumer goods. Company sells in140 countries and with
    Operating units (plants, divisions, facilities) in 58 countries. P&G had worldwide sales of $33.5
    B in fiscal 1995 and earnings of $2.64 B.
    The problem of this study is all about P&G’s drive on redesigning their Supply Chain
    using Business Analytics. This problem mainly focuses on the issues that they want to cover
    such as streamline work processes, drive out non-value-added costs, eliminate duplication and
    rationalize manufacturing and distribution.
    The suggested solution to the major problems is to develop a system that makes it easier
    to assess customer demands and efficient product management. The case study lists several
    methods for redesigning supply chain management, including business analytics to make
    informed business decisions through data analysis and other statistical methods. The second is
    through the use of information technology, which manages critical data and handles the
    company's overall communication networks. Third, the network optimization model is said to
    seek an optimal combination of factories and distribution centers in the supply chain. Fourth,
    geographical information systems (GIS) enable proposed solutions to be visualized on a map for
    easier management interpretation. Finally, the simple interactive PC-based tool would enable
    product strategy teams to evaluate new options, make revisions, use a GIS, and guide users to
    better options in an evolutionary manner.
    In relation to this, here are some factors driving redesigning P&G's supply chain:
    1. Deregulation of the trucking industry had lowered transportation cost
    2. Product compaction that results in more product per truckload
    3. P&G focuses on total quality management
    4. Corporate acquisition gave P&G excess capacity

    The best-recommended solution to be implemented is business analytics. Business analytics


    can bring about significant change by forecasting future events based on a variety of data
    sources. Through sourcing and distribution, it enables the product strategy clauses to gather and
    examine pertinent data in order to produce precise risk-adjusted cash flows. The case study uses
    sourcing as the provision of a mathematical model and decision-making support for the product-
    strategy teams. Also, the distribution provides support to a team of experts in transportation and
    balances the supply and demand of the company. With this recommended solution, the overall
    supply chain problem will be addressed and this will meet P&G's objectives.
    In this case, they detailed the best solution that should be implemented is business analytics
    where the practice involves processes, tools & technologies for drawing business insights from
    data with an objective to achieve desired business outcomes. To decompose the overall supply-
    chain problem into two easily solved subproblems under the business analytics the distribution-
    location problem and a product-sourcing problem for each product category. With that here are
    some reasons; first, the division of the strategic planning process by management into
    distribution teams and product-category teams reflected a natural breakdown across supply chain
    tiers and across product categories, next is business analytics team found that manufacturing and
    raw material costs greatly outweighed distribution expenses, indicating that sourcing decisions of
    products were not increasingly dependent on the downstream distribution system's structure, and
    lastly majority of plant shipments were made directly from the plant to the customer, indicating
    that customer location was more important to sourcing decisions than DC locations.
    Members:

    BSBA – FM4

    Estadilla, Ira Fe G.

    Sianoya, Charlotte Mae C.

    Villagomez, Aira Madelle A.

    Benico, Ella Mae C.

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