Colgate-Palmolive Supply Chain: Competencies, Activities, and Critical Comments

This article discusses the supply chain process of Colgate-Palmolive, a multinational company that manufactures and sells consumer products. It describes the competencies and activities of the company's supply chain, including its first, second, and third tiers. The article also provides critical comments on the company's supply chain process, such as its focus on lean six sigma principles, customer service, and logistics. The bibliography lists the sources used in the article.

Supply Chain 1
COLGATE-PALMOLIVE SUPPLY CHAIN
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Supply Chain 2
Colgate-Palmolive Supply Chain
1.0 Supply Chain for Colgate-Palmolive
Colgate-Palmolive is a leading Multinational Company that has been ranked top severally
due to its quality consumer products. The company manufactures and sells different consumer
products that include soaps, toothpaste, and pet supplies. The products manufactured by the
company can be categorized into two, pet nutrition and oral, personal and homecare ranges. The
company has evolved over the years and in 1999, they did an overhaul of their technological
system hence leading to major improvements in all the vital departments and in the supply chain
process (Lambert & Enz 2017, pp.3). The company replaced its previous supply chain with a
model known as the SAP R/3 solution which has enabled it to use resources efficiently (Stadtler
2015, pp. 14). The global supply chain process for Colgate has been enhanced and this has led to
efficient service for retailers, consumers and all other supply chain stakeholders.
2.0 Supply Chain Visual

Supply Chain 3
3.0 Selected Competencies and Activities
1st Tier- The first tier represents the Colgate Palmolive Offices in the United States. The
company further has a distribution centre where all products are kept awaiting transportation to
the retailer shops (Christopher 2016, pp.45). The warehouse makes it easier for the company
when it is planning on the distribution of products. When retailers make orders, goods are taken
from the warehouse and distributed.
2nd Tier- The second tiers represent Colgate Palmolive raw material suppliers and the
retailers. Colgate Palmolive has different suppliers due to the different nature of goods produced.
It has therefore categorized its suppliers based on the types of raw materials they supply for
example plastics, chemicals and consumer packaging (Christopher 2016, pp.45). Colgate
Palmolive has different retailers, for example, Walmart and other medium and smaller retailers.
3rd Tier – The third tier represents the consumers. Colgate Palmolive distributes its
products via retailers to its consumers (Christopher 2016, pp.45). Consumers can get all the
product ranges they may need through the myriad of retailers all over the United States.
4.0 Critical Comment on Competencies and Activities
Colgate-Palmolive applies the lean six sigma principles in the supply chain process. The
company has focused on eliminating global supply chain hurdles by having less manufacturing
points but still being able to achieve efficiency by having strategic manufacturing sites close to
the market. The company has further been able to engage in global procurement hence benefiting
from economies of scale since there are countries where raw materials are cheaper and labour is
cheap (Furterer 2016, pp.34). Colgate-Palmolive has further invested in customer service and
logistics by ensuring that consumers are given the highest priority and the logistics methods used
are those that create efficiency. The company has also focused on support by maintaining
consistency across the supply chain. Awareness has been increased and there is increased focus
to ensure that all supply chain stakeholders are supported appropriately. This focus has enabled
the company to achieve (Furterer 2016, pp.50):
Working for the customer- All efforts in the supply chain process are geared towards the final
consumer. This is emphasized to all the supply chain players

Supply Chain 4
Finding Problems and Focusing on them-There is an emphasis on identifying any issues that
crop up in the supply chain and sorting them immediately
Removing Variation and Bottlenecks -Removing any obstacles that hinder the supply chain from
operating efficiently
Clear communication- Clear communication methods among all supply chain players
Flexibility and Responsiveness-Addressing concerns and listening to suggestions of supply chain
members

Supply Chain 5
Bibliography
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Furterer, S.L. ed., 2016. Lean Six Sigma in service: applications and case studies. CRC Press.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer, Berlin, Heidelberg. Lambert, D.M. and Enz, M.G.,
2017. Issues in supply chain management: Progress and potential. Industrial Marketing
Management, 62, pp.1-16.