Success Stories Procter & Gamble MOVING CLOSER TO THE CUSTOMER
With this deeper understanding of customers and consumers, P&G has succeeded in taking demand shocks out of its supply chain and in ensuring that shelves are consistently well-stocked. By taking data from point of sale and pushing it back through the supply chain as consumer decisions are being made, P&G makes better business decisions faster. As a result, the company is able to deliver its products at the right time, the right place, and at the right price – anywhere in the world.
Getting closer: SAP helps
P&G get closer to suppliers,
customers, and consumers.
New acquisitions are also an important part of P&G’s growth strategy. This was the company’s goal when, for example, it acquired Gillette in 2005 – an acquisition that enlarged the company by 20% by adding a brand recognized around the world. Gillette, the global leader in the grooming, personal care, oral care, and batteries businesses, operated 32 plants in 15 countries at the time P&G acquired it. Combining the operations of two large companies posed a tremendous challenge. Since both Gillette and P&G ran SAP solutions, the integration succeeded in record time. “SAP has allowed us to become more flexible and adaptive in nearly every area of our business – from cutting costs and accelerating innovation to bringing new acquisitions on board,” says P&G Global Services Officer and CIO Filippo Passerini.
WELL POSITIONED FOR THE FUTURE
Over the coming decade, P&G will confront a number of challenges and threats, including competition from new brands; shifting consumer and retailer demands; as well the erosive effects of commoditization. But with its portfolio of SAP solutions, the company is well-positioned to manage future change. “The winning companies down the road are going to be the ones that have winning supply chain capabilities. We know that our business will change several times over the next 10 years,” adds AG Lafley. “But with SAP, our business model can be used as a tool for innovation – and competitive advantage.”
Innovation in real
time: SAP gives P&G
users real-time data for better,
faster decisions.