Академический Документы
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Saumya Goel 208 Nishant mandwawala212 Nikhil nair 366 Ronak vora374
AT A GLANCE
$67.9 billion sales* 135,000 employees More than 170 manufacturing facilities in more than 40 countries More than 20 R&D centers in 10 countries Unique organization structure
DISTRIBUTION
PROCESS REDESIGN
VARIABILITY
ISSUES
UNCERTAINTY IN DEMAND
SOLUTION: CRP
TO THE VENDOR
Improved perfect order rate Total delivery cost reduction Reduced invoice change More productive use of sales time
EDI
Transmit data from retailer to P&G Platform for CRP
BENEFITS
Reduced transaction cost Huge data transfer
THREATS
Seeks manual intervention Huge errors without human buffer Increased cost
EDI
BENEFITS
Standardization of the process Automation Reduction of complexity Reduction in error Reduction in the cost of the processes
THREATS
ECR
EFFICIENT STORE ASSORTMENTS EFFICIENT REPLENISHMENT EFFICIENT PROMOTIONS EFFICIENT PRODUCT INTRODUCTIONS
Outsourcing to IBM
Benefits
Standardization in the industry Reduced barriers to CRP adoption Reduced P&Gs cost of operation Increased the base for P&Gs operations
Threats
There were no economic benefits for P&G by outsourcing
VALUE PRICING
FACTORS LEADING TO VALUE PRICING
Declining brand loyalty Frequent promotions Disincentive to brand loyal customers Lacked a standardizing pricing structure
BENEFITS
Benefits to crp customers Reduction in number of pricing changes Elimination of variable promotional allowances Stronger profits
To what extent has P&G changed its strategy to take advantage of ECR ? In 1992, the company instituted a comprehensive program, called Efficient Consumer Response (ECR) to remove unwanted costs from the supply chain. ECR concentrated on four key areas: efficient replenishment, efficient promotion, efficient introduction and efficient assortment. It enabled grocery chains to compete effectively with low cost alternative retail formats. ECR became a banner for a wide variety of innovations in the grocery channel. P&G was a clear leader in implementation of CRP and other ECR Programs and wanted to increase the pace of its adoption in the industry overall.