Procter & Gamble (P&G)

Industry: Consumer Goods

Procter & Gamble (P&G)
Procter & Gamble's overarching business philosophy is one of demand-driven supply chain and continuous improvement.

Company

Procter & Gamble, a leading consumer products company, ranks among the most innovative technology organizations in the world, with dozens of billion-dollar brands, over $76 billion in annual sales, and over 140 plants in more than 80 countries.

Problem

Meeting aggressive profitability targets required a reduction in overall inventory while sustaining superior customer service levels.

Solution

Procter & Gamble implemented Logility Voyager Inventory Optimization and changed levels and placements of safety stocks across raw materials, work-in-process, and finished goods at multiple DCs, while achieving P&G's 99% service level target. "What-if" analyses of current policies identified multiple opportunities for additional reductions over time.

Bottom Line

  • Saved over $100 million to date
  • Cut safety stock in one product line by 17%
  • Achieved overall inventory reduction of 7%
  • Drives ongoing annual reductions of 2%-3%
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