Procter & Gamble (P & G)
The Procter & Gamble Company (P & G) is a recognized leader in the development, distribution and marketing of superior fabric and home care, baby care, feminine care, family care, beauty care, healthcare and snacks and beverage products. P & Gmarkets nearly 300 brands – including Pampers, Tide, Ariel, Always, Whisper,Pantene, Bounty, Pringles, Folgers, Charmin, Downy, Lenor, Iams, Crest,Actonel, Olay and Clairol – in more than 160 countries around the world
With P & G China’s rapid inventory turnaround time, its existing paper-based manual system proved to be cumbersome as volume increased in the company’s distribution centers. Workers charged with data collection filled numerous orders per day at a fast pace,which increased the risk of human error very early in the supply chain. Sales managers also rushed between offices and distribution centers to check stock/delivery status, taking their focus away from sales and customer service.And warehouse controllers spent extra time on manual bookkeeping to ensure data accuracy.
Project Description: P&G recognized the inefficiency of the processes and its impact on sales, customer service and productivity. Hence, they implement a warehouse management system which is later expanded to a full fledge Enterprise Resource Planning (ERP) solution. P&Gwas able to streamline the business processes in various ways. Upon receipt of orders from P & G sales managers, orders are now entered into an Integration Distribution System (IDS) and transmitted to handheld devices used by the warehouse workers. Sales orders are automatically generated and workers then use this information to pick up the necessary goods from the warehouse. Asa result, orders are ready for collection instantly and the accuracy of data has improved. The handhelds devices also enable workers to transmit order reports to the IDS host to record inventory movement as they pick up goods from the warehouse. Besides facilitating workers to scan and communicate with the IDS host database, the devices permit workers to check stock availability with the scan of a bar code. All data captured on the handhelds are synchronized to IDS, and statements are automatically generated for accounting purposes.
Benefits: Through the project, P&G is able to improve productivity in their supply chain. P&G sales managers focus more on sales, dramatically improving customer service. Warehouse controllers address more inventory management concerns and worry less about accuracy of data and physical stock. Additionally, more accurate order information captured by P & G workers enables the company to better plan delivery routes to customers, thereby reducing transportation costs.