Global Operations and Logistics

Added on -2020-02-12

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Global Operations andLogistics
Table of ContentsINTRODUCTION...........................................................................................................................1TASK...............................................................................................................................................1Company background and Overview:.........................................................................................1TASK...............................................................................................................................................3Critical analysis of company supply chain and its Additivity for company competitiveadvantage:...................................................................................................................................3Global Operations: Facilities, Transportation, Inventory, Outsourcing, InformationTechnology:.................................................................................................................................6Procter and Gamble Success in Implementing its Global Logistics Operation:.........................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONProcter and Gamble (P&G) is a consumer good corporation based in down townCincinnati, Ohio, United states of America. It was founded by William Procter and JamesGamble in 1837. It have a range of portfolio's in the market in which its primary products arecleaning agents, hygienic product and personal care. It use to deal in food, snacks and beveragesbefore it sold out Pringles to Kellogg Company. It is listed on NYSE, DJIA Component, S&P100 Component, S&P 500 Component. It recoded a peak of $83.1 billion in sales in2014.Currently they are focusing on the cost efficiency which can be bought by simplifying thesupply chain management also gaining competitive advantage (Heizer and Barry, 2013). Thisreport is about How their current supply chain management works, what advantages they have ,complete evaluation about their supply chain management and how they managed to make it soreliable.TASKCompany background and Overview:Procter and Gamble is also known as P&G, it deals in consumer goods Consumer goodsand it is based in down town Cincinnati, Ohio, United states of America. It deals in cleaningagents, personal care and hygienic products. Procter and Gamble is a multinational companywhich serves all the countries in the world except Cuba and North Korea. Currently Company isin the process of streamlining its product portfolio into a simpler yet highly profitable one.Procter and Gamble has Dropped or sold odd around 100 brands from its portfolio and it haveshifted its total focus on the the remaining 65 brands. These 65 brands provides around 95% ofits total company's profits. As the CEO of Procter and gamble said that the future Procter andGamble will be a lot simpler, less complex company who will be providing all the leading brandsof the market which are easier to manage and operate (Mangan and Lalwani, 2016). Procter andGamble is a 179 years old corporation. They have a large loyal customer base. P&G is listed onNYSE, DJIA, S&P 100, S&P 500.Procter and gamble started its expansion drive in 1930 when it first acquired ThomasHedley Co, from Newcastle upon Tyne. P&G after acquisition made 'Hedley House' itsheadquarters in UK. It then started introducing more and more products at a rapid speed(Myerson, 2012). It further acquired different company which bought in different portfolio's to1
the company . This made P&G to hold of brands like Gillette, Duracell, Oral-B, etc. Procter andGamble had many portfolio's which were providing not enough returns so P&G started to sell-offor dropped them from its list of portfolio's. It has been understood that less number of highlysuccessful brands are more easier to operate and improve than keeping low level of portfolios,which have either lost their worth or are not providing enough returns (Waters and Rinsler,2014). They started restructuring in 2009 when P&G sold off their Prescription drug business for$3.1 billion to Warner Chilcott. In 2012 P&G sold off few more brands and existed the foodbusiness, they sold Pringles to Kellogg for $2.75billion. The restructuring process is still goingon as they have sold their entire beauty product portfolio to Coty for $13billion. It is one of thebiggest divestiture which is done by the Procter and Gamble. The reason they provided was thesluggish growth in the beauty market. Procter and Gamble Structure is categorised in Ten categorises and Six selling andmarket organisation: Categories are:Baby care, Family care, Fabric care, Feminine care, Grooming, Oral health, Personalhealth care, Home care, Hygiene and Hair care.Selling and Market organisations:Asia Pacific, Greater China, South America, North America, Europe, Middle East andAfrica.Procter and Gambler has been awarded many awards and has received many recognitionwhich makes it one of the top corporations in the world (Folinas, 2012). Fortune magazineawarded P&G a top spot on the list of global top companies for leaders. It also ranked thecompany 15th on its 'Worlds Most Admired Companies” List. P&G manages its activities in a effective manner as it has divided its various operationsinto different sections Such as, supply chain management department is divided into supplierrelationship management, internal supplier group and customer relationship management. Thisassist organisation in keeping the flow of goods and services to the end users smooth while alsomaintaining employees and increasing customer satisfaction. These days company is shifting itsfocus on using innovative approach to boost organisation capability to complete whole businessprocess in a more efficient manner. The recent changes in its supply chain states that it wants toopen various distribution centres which will be catering to the needs of different regions at once.2

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