Procter & Gamble and Kane is Able: Logistics Management Report

This report provides an in-depth analysis of the Procter & Gamble (P&G) case study, focusing on its partnership with Kane is Able, a third-party logistics provider. The report begins with an executive summary, followed by an introduction to logistics management and its impact on organizations. It then provides an overview of the P&G case, detailing the initial successes and subsequent performance decline. The core of the report examines the key success factors in the strategies adopted, including prioritizing safety, detailed planning, honoring promises, clear communication, and treating customers as family. It also identifies the challenges faced by the logistics department, such as employee skill gaps, safety issues, storeroom problems, compliance with regulations, and managing operations across large geographic areas. Finally, the report outlines strategies to maintain improved results, including forming a performance management system, establishing a clear communication strategy, implementing employee training, and fostering continuous improvement within the organization. The report concludes by emphasizing the importance of consistent performance management to prevent future setbacks and maintain a successful supply chain.

Running head: PROCTER AND GAMBLE
PROCTER AND GAMBLE
Name of the Student
Name of the University
Author Note

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Executive Summary
Te given report throws light on the case study of Procter and Gamble and its third party logistics
manager, Kane is Able. The company hired the third party logistics manager to boost its
operations, which was fruitful for a while but the performance starting dipping after some time.
The company, Kane is Able, formulated a plan to revamp the logistics system of the company.
The given report discusses the changes that were brought about. The report follows a structured
format that consists of an introduction followed by a brief overview of the case. The next
sections elaborate the different concepts relevant to the case like the Key success factors in the
various strategies used; challenges faced by the logistics team and maintenance strategies.

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Table of Contents
Introduction......................................................................................................................................3
Overview of the case.......................................................................................................................3
Key Success factors in the strategies adopted.................................................................................3
Challenges faced by the Logitsics Department...............................................................................6
Strategies to be used by the company to maintain the results.........................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Logistics Management is a very important part of any organization. A critical change in
the logistics management of an organization can bring about a huge impact on the organization.
In the given report, the change bought about in the Procter and Gamble with the help of Kane is
able, a third party logistics company has been given. The report is divided into various sections.
The first section describes the various key success factors as identified in the strategies, which
have been adopted by the company in order to change the logistics of the given company
(Fawcett, Ellram and Ogden, 2013). The second section describes the challenges that had been
faced by the company while making the logistic changes. The last section describes the various
performance management strategies that need to be adopted by a firm and specially P and G to
make sure that the company is able to perform well.
Overview of the case
The case describes the task of the logistics company Kane is Able who was given the task
of managing the logistics department of the P and G company`s operations. The company began
its operations in 2011 (Pg, 2018). The company`s performance increased considerably but after a
short period of time, the performance of the company fell considerably (Able, 2018). After a
certain period of time the company along with Kane is, Able revamped its logistics plan and
adopted certain new strategies through which it was able to succeed in its plan and bring the
company back on track (Schönsleben, 2016).

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Key Success factors in the strategies adopted
Key success factors can be described as those business practices or those activities or
functions, which are described by the market and are, Form an essential part of the business
strategies with respect to the relationship between the company and the customer. These success
factors are generally three to five areas in which the company faces certain issues or those points
here the company is strong and that strength needs to be preserved with the company.
The strategies that were implemented in the given case are:
1. Giving utmost importance to Safety- Kane is Able logistics company understood the
importance of the safety components while delivering a product. The motto of their
strategy became that safety is extremely important for all the relationships in a business
organization. The employees need to have their priorities set right. The families need to
come first, the colleagues second and the customers who lie on the services of the
employees.
Key success factors- The key success factor of this strategy was the importance given to the
safety of the employees, colleagues as well as the customers (Johnson, 2014). This safety goes a
long way in portraying the image of the company in the eyes of the customers. This shall make
the consumers who are being delivered the product feel that the company cares about the well-
being.
2. Detailed planning- Planning is the most essential part of any management program. Kane
is Able stated don that planning appropriately and stating all the details is extremely
important when providing the customers with the product (Bresler and Lubbe, 2014). The
customers need to be given adequate details about the products that they are purchasing

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as these details help the consumers to gain sufficient knowledge about the product and
helps them to clear all their queries about the products.
Key Success factor- Details are the key success factor in the given strategy. The details, which
have to be given to the consumer, enable them to believe that the company has nothing to hide
from them and they tend to perform better in such a scenario (Christopher, 2016). Details should
not be hidden from the consumers. When Kane is Able helped P and G to apply this strategy, the
company was successful in improving their image in the eyes of the customers.
3. Abiding by the promises- The word given by the company is extremely crucial. When a
company is making certain promises to the consumers, it has to make sure that it abides
by whatever it is saying in order to maintain the image of the company in front of the
customers. When a company promises to deliver a certain product with particular features
and characteristics (Armstrong et al., 2015). The company should make sure that it is
given the customers what it wants and what it has stated earlier.
Key success factor- Honoring the word is the main success factor of the above-mentioned
strategy. A company should not be keeping the promises, which it cannot abide by. Honoring
one word`s is a good sign of corporate ethics. The organization needs to gain the confidence of
the customers and increase their popularity.
4. Avoiding surprises and clear communications-, Customers are the money priority of any
business. Their needs are the main reason behind the existence of any company and
therefore it is extremely important for any organization to make sure that in engages in a
clear communications strategy. This communication strategy of the company will reach
out to the consumers and deliver their strategic information. Any surprises need to be

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avoided in order to make sure that the customer does not abort the existing company and
go to a new one.
Key Success Factor- The key success factor of the above strategy is the clear communication
strategy. The communication of the organization needs to be clear and should be able to
convince the consumers to buy the products (Jacobs and Chase, 2017). All harmful as well as
fruitful facts about the product need to be delivered to the consumers.
5. Considering customers as families- The customer is the king of any business enterprise.
The sole reason why a business exists is to satisfy the needs of the consumer. For this
purpose, the company needs to treat their customers as their family. Once the customers
are treated as family members, then the company can do well in that scenario
Key success factors- Providing customer satisfaction. The company through this strategy aims
to provide satisfaction to the various customers (Fernie and Sparks, 2014). It wants to treat its
customers as family and enables the company to gain large number of customers.
Challenges faced by the Logistics Department
The role of Logistics cannot be undermined in any business enterprise. Logistics tends to
play a crucial role in the facilitation of business and other related practices. Functions involved
various businesses in any organization, which are dependent on one another. Due to the variety
of consumer needs and changing business models, clients tend to place a huge burden on the
company. Logistics Management is one of the primary functions of an organization.
The following struggle was faced by the company while dealing and improving the
various logistics aspects of the business.

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 Nature of Employees- Kane is Able applied various logistics and management techniques
which required certain employees to upgrade their skills and apply their fullest
knowledge. However, certain employees were unable to cope up with the modern
technology and hence they had to be left behind (Armstrong et al., 2015). This is
because, in order to apply modern technology, the employees need to be well trained and
if they not able to do so then they will be lagging the whole system.
 Safety Issues- Kane is Able stressed on safety aspects while changing the logistics of the
system. They had to consider the safety of the customers and the employees before any
other concerns. For this purpose, the costs increased considerably and the company had
thus the logistics chain became extremely expensive (Roh, Jang and Han, 2013).
 Storeroom problems- P and G was facing several storeroom management problems. For
this purpose, the whole mechanism and the design of the storeroom had o be changed in
order to upgrade the products and services offered by the company. The logistics
company faced huge amount of problem while changing this system.
 Compliance by Regulations- When the various changes had to be made then, the whole
system had to be upgraded for this purpose the Kane is Able Company faced various
issues with respect to compliance. This is because there are much transportation, security
norms and various global rules, which need to be adhered to.
 Managing the team, which resides in different areas is also considered a huge challenge
for the business organization (Brekalo, Albers and Delfmann, 2013). When the teams are
dispersed drastically it becomes extremely difficult for the firm to manage them all and to
make sure that all of them understand the rules properly and see to it that those rules are
followed properly.

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 Managing operations in large geographic area-When the company has a huge fleet to
manage, upgrading the logistics system becomes extremely difficult, as the changes need
to be made in the entire area of operation.
Strategies to be used by the company to maintain the results
Once the performance of an organization has been improved, it is extremely important to
see to it that the given performance standard IS maintained within the system (Jooste and
Strydom, 2014). Very often, stress is applied on performance maintenance strategies because
companies tend to believe that once they have improved their performance, they have done
enough and nothing more needs to be done. However, this is not the case. The consistency in the
performance needs to be maintained.
In the case given, it can be reflected that after the strategic change brought about in the
company, it achieved the desired results and the organization`s supply chain became one of the
most successful supply chains present. Hence, it needs to be noted that improvement of
performance is necessary but so is maintenance in order to make sure that the organization does
not go through any poor phase again (Gonzalez-Feliu, Semet and Routhier, 2014).
Given below are certain strategies that need to be maintained in order to make sure that
the results, which have been achieved by the organization, are maintained:
 Forming a performance management system- a performance management system can be
described as a mechanism whereby the performance in an organization will be captured
and a standardized performance system is build. In a performance management system,
the actual performance of the organization is measured with the standardized
performance. The standardized performance is arrived after undergoing various programs

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and continuous monitoring. Through continuous monitoring, the organization aims to
understand what is the maximum potential of performance, after it does this it can reach
to a standard. All results achieved after the standardization are measured against the set
standard (Mangan and Lalwani, 2016). After doing this, the loopholes in the system can
be easily pointed at. It may happen that a particular employee is not performing to a
given standard or the products produced do not qualify under a particular test then, when
these will be measured against the standard, the defects can be easily identified and the
errors or deviations can be corrected. The system will help to avoid long-term
deterioration of the quality of production.
 Regular Auditing- As stated earlier, the organization is a dynamic entity. The
performance of an organization does not remain static throughout. It may happen that the
performance of the organization may have determinate over time or the workers may
have become habitual at working in a certain manner, which might lead to the
degradation of the result of production (Touboulic and Walker, 2015). This should not be
the case and in order to prevent this, the organization needs to respond appropriately so
that there exists no degradation of quality in any process in the given organization. Once
the regular auditing will be undertaken, any faults can be identified and corrected easily.
This auditing should be undertaken by third party auditors to avoid any fraudulent reports
and services.
 Self –appraisal- Employees are the backbone of the employee. As given in the Procter
and gamble case, many employees if the organization had to be left behind in order to
revolutionalize the whole system and make sure that the best remained in the
organization. This can only be done in cases where there is continuous appraisal system.

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The performance of the employees needs to be checked at regular intervals in order to
make sure that in future, they are able to abide by the requirements of the organization
and their contribution is adequate.
 Conducting meetings at regular intervals – Meetings form an essential part of the
organization. The senior management are the people who make continuous plans for the
organization and see to it that the members of the organization have clear idea about the
mission and vision of the organization. In a meeting, the senior management may interact
with the other employees and may received useful insights about the organization
(Meixell and Luoma, 2015). These insights are a source of valuable information and help
the members to understand about the problems faced by the lower level workers. Once
these problems are known to the management they will be able to deal in a better manner
with the current situation.
 Hr programs- Apart from self-appraisal, the management of the organization needs to
stress upon the importance of the employees. The employees need to be a part of the
various activities of the organization. These activities can be decision-making, quality
checks and other financial functions. Motivation is the key to success. The employees
need to be motivated continuously and they should feel as if they are a part of the
organization and that their contribution is relevant for the success of the organization
(Lotfi et al., 2013). For this purpose, the members need to be given various monetary as
well as non-monetary benefits. These benefits will induce the people to perform better
and take the organization to new heights.
 Technological Up gradation and Adaptation –The business environment is extremely
dynamic. Various technological changes take place in the business environment, which

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may change the face of entire processes. Hence, a special technological team needs to be
appointed. This technological team needs to conduct continuous research and
development processes in order to identify and analyse the new technology, which is
present in the market. Once this is done, the most updated technology needs to be applied
in the system (Hollensen, 2015). The whole organization should undergo a proper
training to adapt to the new technology. The company must understand that it is
extremely important to make all the processes at par with the other companies so that the
company can compete with others in the international market.
Conclusion
Therefore, from the given case study and analysis it can be stated that the company has a
wide spread operations whose logistics is management by the third party Kane is Able Company.
The Kane and Able Company were able to change the operations of the company drastically and
for that, it made a variety of changes. The company adopted various strategies to make those
changes and achieved huge success in those. It was faced by a variety of challenges while
making these changes but it overcame these challenges. The last section described the various
maintenance strategies with the help of which the company would make sure that the
performance would be maintained at the same level.

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<https://www.kaneisable.com> [Accessed 13 Jan. 2018].
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