Procter and Gamble Tries to Optimize Inventory

2635 WordsNov 29, 201111 Pages
Chapter 8: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications The shampoo and lipstick aisles at Target and actually sites for an unending struggle among consumer products companies for retail shelf space. No company knows this better than Procter & Gamble (P&G), one of the world 's largest consumer goods companies, with annual revenue surpassing $76 billion and 138,000 employees in 80 countries. The company sells more than 300 brands worldwide, including Cover Girl cosmetics, Olay skin care, Crest, Charmin, Tide, Pringles, and Pampers. Wal-Mart hardly seem like battlegrounds, but they are changes in inventory made by one echelon may have unpredictable consequences on the others.…show more content…
Gillette, which P&G was preparing to acquire at the time, had already begun using Optiant software with strong results. PowerChain Suite determines appropriate inventory configurations that can adapt smoothly to quickly changing demand. The solution uses mathe* matical models, based on award-winning research from MIT, which balance costs, resources, and customer service to arrive at these configurations. PowerChain tools pool inventory to minimize risk across products, components, and customers and also coordinate inventory policy across different items. (When inventory is available at the same time, this helps reduce early stock). PowerChain enables companies to design new supply chains and to model their end-to-end supply chain. They then can quickly evaluate the cost and performance of alternate supply chain structures and sourcing options to make better decisions. Optiant has provided supply chain man_ agement for other leading manufacturers such as Black & Decker, HP, IKEA, Imation, Intel, Kraft. Microsoft, and Sonoco. F 282 for the Digital Age Part lll: Key System Applications as the pilot project P&G 's beauty division served software ' Beauty is one fo, itt" uAoption of the Optiant most complicated ' and most -P&G of the company 's largesi multi-eche- believed that if profitable divisions ' increase profitability at lon

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