P&G’s Supply Chain

Optimize has an article by Larry Kellam. the director of supply-network innovation at Procter & Gamble: “At Procter & Gamble, we’re working toward a vision we call ‘the consumer-driven supply network.’ That differs from our supply-chain strategy of the past in two significant ways: It puts the consumer first, and it envisions a network rather than a chain. All the work we’ve done until now to improve our supply chain focused on the supplier firstwhich means we’ve been applying a cost mentality to the problem. Now, we’re putting the emphasis on serving the consumer. And whereas a chain connotes handoffs and time delays, the consumer-driven network will operate with real-time data and all network participants working to add value for the consumer.”

The five elements of the supply chain discussed are: real-time demand information, collaborative planning, produce-to-demand manufacturing system, dynamic replenishment and distribution and the consumer-driven supply network.

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