Supply Chain Management of P&G

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Welcome to The

Presentation
Program of Supply
Chain Management

Presented by
Vanguards

Name of The Group


Members
Serial Members Name
No.
1
2
3
4
5
6
7
8

ID No.

Mohammad Azam

Saba Zarifa Nowshin

Somiron Haldar

Tanzila Tahrin

Nurry Jannat

114867

Halima Kader Sonia

Misbah Uddin Sadi

Rinku Biswas

Sazzad Hossain

114941

114877
114909
114911
114917

114943
114945

Saba Zarifa
Nowshin

ID No: 114877

What is Supply Chain


Management?
The concept of a supply chain
referred to the flow of materials
from their sources (suppliers) to
the company, and then inside the
company for processing. Then
finished products were moved to
customers.
A supply chain refers to the flow
of materials, information,
payments, and services, from
raw material suppliers, through
factories and warehouses, to end
customers.
It also includes the organizations
and processes that create and
deliver products, information,
and services to the end

Component of Supply
Chain Management

The term supply chain comes from a picture of


how partnering organizations in a specific
supply chain are linked together.
Figure -1 shows a relatively simple supply
chain, which links a company with its suppliers
(on the left) and its distributors and customers
(on the right).
The upper part of the figure shows a generic
supply chain; the lower part shows the chain of
a toy manufacturer

The supply chain is


linear and it involves
three basic parts Downstream
supply chain
Internal supply
chain
Upstream supply
chain

Tanzila Tahrin
ID No: 114911

Types of Supply Chain


Integrated make-to-stock
The integrated make-to-stock supply chain model
focuses on tracking customer demand in real time, so
that the production process can restock the finished
goods inventory efficiently.

Build-to-order

In this model a
company begins
assembly of the
customers
order.

Continuous replenishment
The idea of the continuous replenishment
supply chain model is to constantly replenish the
inventory by working closely with suppliers and/or
intermediaries. the cost may be too high, causing
the supply chain to collapse.

Channel Assembly Model


In this model, the parts of the product are
gathered and assembled as the product moves
through the distribution channel. . A channel
assembly may have low or zero inventories, and it
is popular in the computer technology industry

Supply chain Management process

Mohammad Azam
ID No: 114867

Drivers of Supply Chain


Management
Logistical Drivers
Facilities:
The major types of facilities are
production sites and the storage sites.
Economies of scales are used in
centralization of facilities to increase
supply chain efficiency.

Facilities Related
Decisions:
Location
Capacity
Manufacturing Methodology or
Technology
Warehousing methodology

Inventory:

Inventory consists of the


raw materials, work in
progress and the finished
goods.
responsiveness of the
supply chain. 3 basic
decisions to be taken by
the business. Those are Cycle inventory
Safety Inventory
Seasonal Inventory

Transportation:
Refers to the modes and routes
for moving inventory throughout
the supply chain.
Faster transportation ensures
more responsiveness but less
efficiency of supply chain.
Transportation supports a firm's
competitive strategy.
Six basic modes exist
Air
Truck (Road)
Rail
Ship
Pipeline

Cross functional
Drivers
Information:
Connects various supply
chain partners and allows
them to coordinate activities
Information is crucial to the
daily operations at each
stage of the supply chain
An information system can
enable a firm to get a high
variety of customized
products to customers rapidly
and to understand the
changing customers tastes
and preferences.

Sourcing:
Process of purchasing the
materials required for the
production of the final
products
Components of the sourcing
decisions are the evaluation
and the selection of the
suppliers, in house or
outsourcing.

Pricing:
involves determining the
charges for the goods or
services offered by the
manufacturers.
The price of the product

Trends of Supply Chain


Management
Demand planning
Globalization
Increased competition and price
pressure
Outsourcing
Shortened and more complex
PLM
Collaboration between
stakeholders in the extended
supply chain

Nurry Jannat
ID No: 114917

Computer Based Supply


Chain Management
Electronic data interchange
Gathering information directly from
the source
Suppliers determining order quantities
Elimination of invoices saving
administrative work,
Using barcode labels
Automation

Supply Chain Management


in Cloud Computing

Overview of
Proctor & Gamble
Procter & Gamble Co., also
known as P&G, is an
American multinational
consumer goods company
headquartered in downtown
Cincinnati, Ohio, United
States,
founded by William Procter
and James Gamble, both from
the United Kingdom.
Its products include pet
foods, cleaning agents, and

Mission Statement:
"We will provide branded
products and services of
superior quality and value that
improve the lives of the world's
consumers. As a result,
consumers will reward us with
leadership sales, profit, and
value creation, allowing our
people, our shareholders, and
the communities in which we
live and work to prosper."

Vision statement
Vision statement centers
around being a luxury brand
while still remaining

Main competitors of
Proctor and Gamble
Johnson and Johnson
co.
kimberly-clark co.
Uniliver.co

Halima Kader
Sonia
ID No: 114941

Products of P&G
Beauty Products:
Hugo Boss ,Dolce & Gabbana, Gucci
,Olay
Grooming Products:
Fusion, Gillette, Prestobarba and
marc3
Health Care Products:
Vicks, Oral-B, Head & Shoulders,
Pantene,
Pampers
Fabric Care and Home Care:
Tide, Ariel, Ambi pur

Supply Chain Initiatives of


Proctor and Gamble
A. Major initiatives are
1. Collaborative Planning Forecasting
and Replenishment (CPFR)
2. Consumer Driven Supply Chain
Network (CDSN)
B. Other initiative: Control tower
program.
CPFR Initiative:
It recognizes the main cause of three
issues they are:
1. Ineffective trust- based collaboration.
2. Ineffective planning using visibility
POS consumer demand.
3. Ineffective forecasting.

Five factors motivating supply chain


redesign in Proctor and Gamble

1. Deregulation of the
transport norms: lower
transportation cost.
2. Product compaction; more
products per truckload.
3. Focus on Total Quality
management.
4. Decrease in product life
cycles from 3-5 years to 1824 months.

Why Proctor and Gamble is


better than others?
1. It has high brand loyalty.
2. It has a vast distribution
channel.
3. It has high innovative
products.
4. Its pricing strategy.
5. High quality of the
products.

Rinku Biswas
ID No: 114945

Inventory Driver
Maintained by P&G
While it's very much on top of its
supply chain game, Procter & Gamble
still sees opportunity in reducing its
worldwide inventory levels.
That explains why the company is
putting so much emphasis on
emerging multi-echelon inventory
management technology to keep
inventory levels down and customer
service high.

A fresh look at
Inventory Optimization

Many companies are now actively


reevaluating their inventory
management processes and
technologies, says research firm
Aberdeen Group.
Nearly two-thirds of the
respondents to an Aberdeen study
say they have recently made or
been asked to provide
recommendations to management
on how to improve their inventory
management technology.
The new focal point is inventory
optimization, based on new
insights from mathematical
models that allow managers to

Manufacturing and
Outsourcing
P&G has over 130 manufacturing
facilities in over 40 countries. These
facilities handle the majority of
P&Gs production.
Sometimes they use contract
manufacturers on a longer-term
basis for reasons of cost
effectiveness
In addition, many of their
products simply do not lend
themselves to shipping long
distances.
The exception to this would be
where unique manufacturing
capability exists in one region and
they are able to economically ship

Category
Management
Customer
Data
Retailer

Consumer
Data
Manufacturer

Data Integration

Decisions

Market
Data
Third Party

Sandip Sarker
ID No:114951

ABC Analysis
define
aninventorycategorization
technique often used inmaterials
management
A ITEMS: very tight control and
accurate records.
B ITEMS: less tightly controlled
and good records.
C ITEMS: simplest controls
possible and minimal records.

Pareto Analysis
Pareto analysis (sometimes
referred to as the 80/20 rule and
as ABC analysis) is a method of
classifying items, events, or
activities according to their
relative importance.
Close control is more important
for fast moving items with a high
unit value. Conversely, for slow
moving, low unit value items the
cost of the stock control system
may exceed the benefits to be
gained and simple methods of
control should be substituted.

The Inventory Curve


Analysis

Misbah Uddin
Sadi
ID No: 114943

Information Drivers of
Procter & Gamble
Information is
P&Gs unique
asset. Using
information, they
make decisions
what they enable
and make solutions
what they deliver
for P&Gs global
businesses.
Information &

We think, better data analysis is the heart how P&G


will improve productivity
1. Getting the Right Tools and Technology
To be a competitive organization, they must have the
capability of getting the right tools as well as enough
technological support.
2. Putting the Right People in the right places
P&G is pretty well known for grooming managers and
training people for its future needs. Analytics is now a
skills area of particular focus.
3. Building the right culture.
It may be called as "cultural revolution." which is
more appropriate. Tools like Business Sphere can

P&G Database and


Information Systems

Recently, P&G realized


a need to audit a
database. Information
in the MEGA
repository helped GBS
quickly identify the
database owners so
they could be linked
immediately with the
auditors.

Protecting confidential
information and

Sazzad Hossain
ID No: 114947

Some Problems arose in


P&Gs Supply Chain
During 1990s the organization
sales and shares went down.
Invest in too many things.
Poor service level with customer.
Dont concern about customer
satisfaction.
Hired too many people.
Lack of communication between
employees and customers.

Solution
In June 2000 Alan G Lafley
becomes new P&G CEO.
Focused in customer value,
need and work more closely
with the retailers.
Build a strong relationship
with customers.
Creates a leadership
training centre.
Creates Global Leadership
Team.
Outsource some activities.

Somiron Halder
ID No: 114909

Challenges for Proctor and


Gamble
Distribution location.
Transportation cost.
Uncertainty in demand and
supply.
Changing customer
requirements.
Reduction in product life
cycles.
Cut throat competition: price
wars, media buying retail
space recession.
Dominating distribution costs.

Conclusion
The success of a business always
depends on the way their product or
service is marketed and produced as
it is the most crucial stage of a
business. With proper supply chain
Management programs a business
will flourish. With effective
implementation of supply chain can
make a company more establish
than other company.

Thank You
All

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