Supply Chain Management Report | Assignment

Supply Chain Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Rationale.................................................................................................................................3
Situation Analysis...................................................................................................................3
Problem Solving.....................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX....................................................................................................................................10

INTRODUCTION
Supply chain management is continuous operation and practices of attaining optimum utilisation
of resources by maintain their production process according to its productivity. Main purpose of
it is to manage machinery and human resources performance by eliminating obstacle faced by
them while working (Gattorna, 2017). For this report, Procter and Gamble or P&G is taken for
consideration which is a American conglomerate and deals in health and consume care product,
beauty, grooming, family care products etc. Quality management and how it assists company to
perform better in the market is explained. Then various problems which are faced by the firm
and how they could avoid those situations are described. At last, different ways through which
company can improve their efficiency is determine by taking functional example of P&G.
MAIN BODY
Rationale
Procter and Gamble is one of the oldest and famous brand in consume goods industry as they
used to have more than 165+ brands in different industries and sector. But to focus on quality,
company sells of their 100 brands and now maintaining and monitoring 65 brands. In this
industry, there is only one source of company’s income i.e., consumer (Wong and et al., 2016).
Due to low sensitivity of price, customers can easily switch their brand preference to other
company if they are not satisfied with their existing brand resulting in negative performance for
them. So to maintain this, Quality management plays an essential role in the success of P&G due
to which this topic has taken for considerations. There is various reasons due to which Quality
management and assurance becomes important for P&G like it assist them to maintain their
goodwill in the market .Other factor is innovation, in which company tries to understand
behaviour of consumers, their needs and demands so that their final product would be made
accordingly.
Situation Analysis
Total quality management is a process of improving business operations of a company so that
their position in the market would be secure for longer period of time. Purpose of TQM is to
monitor and analyse problems like poor product design, poor quality control, compliance with
rules and regulations etc and then try to remove it so that higher performance would be generated
by employees and machinery. There are two main factors on which quality management is

performed in P&G i.e., quality check and quality assurance (Chen, Palma and Reyes, 2019).
Status Quo of Quality management in P&G is given below,
 P&G owns products which deals in health and beauty due to which no margin error is left
for them. To cope up with foreign microorganisms, P&G has recently opened Pines
External Lab for 3 million dollars which focuses on quality check of health and beauty
products so that it would be protected from any kind of organisms which could harm their
consumers (PROCTER & GAMBLE UNVEILS, 2018).
 P&G has pre-set standards of quality which they need to follow like to procure raw
materials there are three phases which it needed to pass i.e., Safety in which raw material
safety and how will it affect customers after consuming it is check. Performance factor in
which how it performs in various circumstances. Last is sustainable sourcing means how
easily it could be outsourced without affect environment in a negative way (Take a look
inside the bottle, 2019).
 P&G maintains CPSC certificates of conformance and safety data sheets in their
production which assist employees to maintain standards of machinery usage and
materials so that no defective or low quality product would be transported to customers
(A Foundation of Integrity, 2019).
Problems and its solution
P&G faced problems in their beauty product as sometimes quantity promised by company is not
in the bottle or sachet or quality of the product is not up to the standard of what customers are
paying for it.
 Previously, company uses manual inspection to check their product size and quantity of it
so that any defective product would be eliminated in the first place. This process is time
consuming and labour extensive in nature as thousands number of employees are required
to check quality which always equipped with human error. So to cope up with, P&G
introduced checkweigher machine in their system so that thousands of workers work
would be done by single machinery and without any defect thus improving productivity
(Scott, Lundgren and Thompson, 2018)
 In the starting, company uses animal for testing their products due to low availability of
advanced technology which was affecting their goodwill in the market. Moreover, due to
different sensitivity in the skin of animal and human being, it was very difficult to