Philip Kotler,” Logistics is defined as planning, implementing and controlling the physical flow of materials from the point of origin to the point of use, to meet customer needs at a profit.” Source Philip Kotler,Marketing management pearson education
According to American Marketing Association, logistics may be defined as, “the management of all activities which facilitates movement and the coordination of supply and demand in the creation of time and place utility in goods.” Source council of logistics management, oak brook,u.s.a
Objectives of Logistics Management
To make available the right quantity of right quality products at the right place and time in right condition. • To offer best service to consumers.
• To reduce the cost of operation.
• To maintain transparency in operations.
Procter &Gamble introduction
Procter and Gamble is a global company that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies (pg.com). This description however becomes increasingly simplistic the more one looks into the size of P&G as well as the scope of their operations. Is made up of over 300 brand names including Bounty, Gillette, Old Spice, Ivory, Pringles, Tide and Pampers and currently owns 22 brands that have more than $1 Billion in annual net sales (2008 Annual report, A. G. Laffley). P&G is a model for related product diversity; almost all of P&G’s products benefit from the same distribution to the same or same type of retail outlets and consumers. Procter and Gamble are also generally credited with having invented brand management. 3 P&G foundation history
P&G was founded in 1837 (making P&G 172 years old) by two men who met by chance. William Procter, emigrating from England, established himself as a candle maker in Cincinnati, which was a busy center of commerce and industry in the early nineteenth century. And James Gamble, arriving from Ireland, apprenticed himself to a soap maker. The two might never have met had they not married sisters Olivia and Elizabeth Norris, whose father convinced his new sons-in-law to become business partners.
As of 2009 P&G Employed 135,000 individuals worldwide and had global sales $79,029,000,000.00 (Wright Reports). P&G also claims to be the world’s 8th largest company in terms of market capitalization (a measure of a companies size equal to the share price times the number of shares outstanding). According to a 2010 report on P&G by Wikinvest, products from Procter and Gamble reach 4 billion of the planet’s population. P&G’s largest competitors are Johnson & Johnson, Kimberly-Clark and Unilever.In terms of product scope, P&G’s company operations are split into three “Business Units” described by the company as Beauty Care, Household Care and Health Care. P&G claims its corporate structure is split into “four pillars”; Global Business Units (mentioned above), Market Development Organizations, Global Business Services and Corporate Functions (pg.com).
A large part of P&G’s success can be attributed to its diversification, which comes from the development of related products through either acquisitions or in house start up development. P&G’s latest acquisition of the Gillette Corporation cost the company $67 billion. The deal added Gillette’s Duracell battery, Right Guard deodorant and line of razors to P&G’s collection of more than 300 consumer brands, which include Head and Shoulders shampoo, Pringles, Crest toothpaste and Bounty paper towels (MSNBC).
P&G's Logistics Revolution: Co-creating Value
Confronting the challenges of rising supplier costs, growing retailer prowess, intensifying...