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Force for Growth Procter & Gamble (P&G
force for groWTH
Procter & Gamble (P&G), the manufacturer of consumer goods and a household name on all continents, posted its biggest growth in five years in key sales measures last quarter.
This growth was undoubtedly helped by the company’s highly performing supplier network, as was duly recognised at the annual
The Procter & Gamble Company (P&G), the American multi-national consumer goods corporation founded in 1837 with headquarters in Cincinnati, Ohio, specialises in a wide range of personal health, and personal care and hygiene products organized into several segments including Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
The company’s products are an almost indispensable part of everyday life. One of the most revolutionary products to come out on to the market was the company’s disposable Pampers diaper, first test-marketed in 1961. The same year Procter & Gamble came out with Head & Shoulders.
P&G, employing some 92,000 people around the world, is a global leader in the fast-moving consumer goods industry, focused on providing branded consumer packaged goods of superior quality and value. Its products are sold in more than 180 countries and territories. The P&G community includes operations in approximately 70 countries worldwide.
The company is very much aware of its social role. In line with the increasing focus on environmental protection and sustainability, P&G launched its Ambition 2030 programme, aiming to make a positive impact on the environment and society while creating value for the company and consumers. The Ambition 2030 goals span the brands, the supply chain, society and the employees.
Specific targets have been set, intended to be achieved by 2030, that include for example 100 per cent renewable electricity and cutting GHG emissions in half at P&G sites, 35 per cent increase in water efficiency and sourcing at least five billion litres of water from circular sources at P&G sites, and advance at least 10 significant supply chain partnerships to drive circularity on climate, water or waste. Reducing its footprint and moving towards circular solutions will not only have a positive impact on the environment, but will also help make the operations more efficient and resilient. Supplier network transformation
In 2014, P&G announced it would streamline the company, dropping and selling off around 100 brands from its product portfolio in order to focus on the remaining 65 brands, which produced 95 per cent of the company’s profits. The restructuring brought remarkable results - last year, the company posted its biggest growth in five years in a key sales measure. Organic sales, which exclude items like acquisitions and currency effects, rose 4 per cent, topping analysts’ projections for 1.9 per cent growth. The growth was greatly supported by a highly performing supplier network.
At its External Business Partner Summit in February 2019, The Procter & Gamble Company recognized its top-performing external business partners for their outstanding contributions to P&G’s global supply network transformation. As part of efforts to lead constructive disruption during a time of rapid change in the consumer goods industry, P&G has been revolutionizing how it goes to market, redesigning its supply chain to respond seamlessly to real-time consumer and retail customer demand.
“Together with our valued partners, we are creating an end-to-end, synchronized supply network where P&G, retail customers, physical
RKW. When Excellence Matters
The RKW Group is an independent, family-owned company headquartered in Frankenthal, Germany and one of the world’s leading manufacturers of excellent films and nonwovens, with 20 sites across 4 continents.
Respect and Reliability are the core values of RKW; Partnership and Trust are the foundation of its successful and lasting business relationships.
As a key global partner of P&G, RKW’s continuing expansion of its international footprint and investments in best-in-class technology not only support the growth of the business but also allow the company to offer the quality, service and innovation expected of a world-class supplier.
RKW has been awarded the P&G external Business Partner of the Year Award for 2018 in the Baby Care category. distribution partners, and suppliers efficiently interact in a seamless ecosystem to best serve consumers,” said Yannis Skoufalos, Global Product Supply Officer, P&G. “We are delivering tangible value to P&G shareholders -- optimising inventory, increasing on-shelf availability of our products, and driving the productivity which fuels the innovation and superiority of P&G’s brands. This wouldn’t be possible without our external business partners who are with us on this journey.”
Press Contact
Patricia Featherstone Director marketing & Communications, Division Hygiene & Industrial Patricia.featherstone@rkw-group.com Seamless collaboration
P&G’s supply network includes more than 50,000 diverse suppliers from around the world and across a wide range of industries and services – from creative agencies to technology partners to materials suppliers. For their contributions during 2018, P&G recognized 10 “Partners of the Year” as well as six other companies who made significant contributions to P&G’s global supply chain transformation or as diverse, upcoming business partners. P&G also awarded more than 30 other companies with the Supplier Excellence Award for sustained business contributions.
All4Labels
All4labels - Global Packaging Group is one of the world’s leading label companies and a market leader in digital printing solutions with a global network of 29 production sites and more than 3000 employees.
What makes All4labels different?
All4labels offers most innovative solutions of the sector in a one-stop-shop concept to create added value for their customers. Because of their drive to transform the field of printed packaging All4labels has been awarded as external Business Partner of the Year for “end2end Synchronization” by Procter & Gamble. This in particular includes investments in Near-Site-Warehouses which have led to a substantially closer interlocking, shorter delivery times as well as significant increases in supply chain agility. Their outstanding performance in the market environment is the combination of supply chain concepts with technical innovation – especially leading in digital printing capabilities.
Its portfolio is completed by the company’s packaging solutions in the Flexible Packaging, Shrink Sleeves, Folding Boxes, Tubes, Smart labels and Security Technologies areas.
This large product range of All4labels as well as the continuous development of their expertise helps to meet the growing market demands of all industries – today and tomorrow.
A strong trustful partnership with local and multinational customers ensures new competitive advantages which will help to grow together successfully.
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The ten companies awarded “Partner of the Year” were Catalent Pharma Solutions, ChaseDesign, DOW Chemical, Hayco Manufacturing, Ltd., Rialto Enterprises Pvt. Ltd., RKW, Shanghai Morimatsu, Superpac, Inc., Yamada Electric Ind. Co. Ltd. and YanJan.
Speaking at the awards ceremony, David Taylor, P&G’s Chairman of the Board, President and Chief Executive Officer, asked P&G’s partners to continue to bring their best ideas and innovations to P&G. “We want strong, lasting relationships with our supplier partners,” he said. “The stronger our relationships are, the greater the opportunity we have to serve consumers better than anyone else. It’s clear that winning today, and in the future, requires seamless collaboration and continually raising the bar together.”
As part of this year’s External Business Partner event, P&G is dedicating a full day to Supplier Citizenship – helping suppliers understand P&G’s approach to diversity and inclusion, as well as the other elements of P&G’s citizenship agenda: ethics and corporate responsibility, community impact, gender equality and environmental sustainability. P&G has spent more than $2 billion with diverse suppliers for eleven consecutive years, and P&G recognizes it will not achieve its citizenship goals without the partnership and capabilities of its suppliers.
Critical partners
P&G has leveraged large-scale application of advanced analytics and digital technology to excel in its ability to manage complicated global supply chain with more than 130 manufacturing sites serving over 180 countries. One of the key drivers is an “end-to-end model” that connected the siloed steps from suppliers to retailers to provide the most value to the end consumers with a fast response time. The concept of integrating the whole value chain allows every stakeholder of its eco chain to minimize the unnecessary inventory as well as to speed up the system.
P&G’s supply network transformation began in 2012 and is a critical component of the Company’s growth strategy – underpinning its ability to deliver superior products, packaging, communication, retail execution and consumer value. Since 2012, P&G Product Supply has delivered a cumulative cost of goods sold savings of $10 billion, including nearly $3 billion in the past two years – while leveraging the global supply network as a sustainable competitive advantage.
“We’re dramatically transforming our supply chain. Over the past few years, we have made major investments into the supply chain to ensure it remains a competitive advantage for P&G. We’re driving down cost and inventory with our Supply Network Transformation. We’re making progress toward our vision of synchronizing the supply chain with realtime point-of-sales data, with consumer purchases triggering updates to our manufacturing schedules in plants and orders of materials to suppliers,” said Stew Atkinson, Chief Purchasing Officer, P&G.
“Our suppliers are critical partners in accomplishing our purpose. P&G’s supplier eco-systems are creating value for consumers, customers, P&G and our suppliers. I am proud of what we have accomplished, and we will continue to raise the bar on superiority, productivity and citizenship together.” n For more information, visit: www.pg.com
