Procter and Gamble’s Oral Care Business Improves Service by 50% While Reducing Inventory by 30%
In 2005, Procter and Gamble (P&G), with an annual revenue of $67B, acquired Gillette for $57B. The merger of Crest and Oral B created a $2.3B US category with offices in Cincinnati and Boston and manufacturing locations in Iowa City, IA and Greensboro, NC, along with multiple contract manufacturers.
Combining best practices across organizations was critical to delivering business objectives as well as creating a strong culture across the new US Oral Care business team. At the same time, P&G began an initiative to integrate all planning functions into a single co-located team with the goal of improving productivity, services, and inventory results. Change leadership, supply chain management skills, and problem-solving were required.
CHALLENGE
Statistical process control principles were reapplied as part of the Oral Care SPI (Sales, Production, and Inventory) Planning Process. Amy led the Oral Care team in best practices of business results management. By using a specialized problem-solving process, we were able to identify and resolve a persistent supply issue across regions caused by gaps in promotion planning. Additionally, we identified the root cause of a service crisis that affected an entire region.
SOLUTION
RESULTS
Product order cuts were reduced by half, with 30% less inventory and a 30% reduction in required staffing. The Oral Care Team was recognized for delivering outstanding results and was asked to lead the re-application of this work across all North American categories.
Amy uncovers opportunities for improvement where others see only the status quo.
Barbara Montgomery Smith, Retired Procter & Gamble Executive
