Procter and Gamble

Topics: Strategic management, Procter & Gamble, Supply chain management Pages: 17 (5902 words) Published: September 3, 2010
1. Company Profiles
The name P&G combines William Procter with James Gamble - Procter & Gamble. On April 12, 1837, they started producing and selling their soap and candles. On August 22, they formalized their business relationship by pledging $3,596.47 a piece. The formal partnership agreement is signed on October 31, 1837 what began in 1850 as a small, family-operated Soap and Candle Company now provides personal care of superior quality and value to consumers in 140 countries. Since 2000, the P&G president and chief executive A.G. Lafley leads community consists of nearly 98,000 people working in almost 80 countries worldwide. Procter & Gamble SA (P&G) is a chemical company. It is one of the newest P&G subsidiaries. The company offers services in the areas of beauty and grooming, health and well-being, and household care. It markets different brands like Head & Shoulders, Pantene, Pampers, Always, Tampax, Oil of Olay, Vicks, Pringles, Old Spice and Hugo Boss. Procter & Gamble in South Africa principally into production of cleaning products and beauty care products. P&G uses its South African base to export to neighboring SADC countries. The company has offices in Johannesburg and Cape Town. P& G has its Headquarters in Ohio, US.

Legacy systems in particular lock companies into old business designs and bury management in multiple views of disaggregated and inconsistent information. Untangling the web of competing priorities and misinformation is a critical component of preparing to handle new compliance burdens. But regulatory requirements are not the only force of change. Companies are relentlessly pursuing supply chain improvements. Emerging markets, having been tapped as sources of low-cost production, are quickly becoming the focal points of top-line growth. Competitive forces are demanding that companies collaborate beyond enterprise walls in “business webs,” and the real time exchange of data across the supply chain is rapidly evolving into a standard business practice. Innovation cycles are accelerating rapidly.

Almost twenty years ago, Procter & Gamble (P&G) started preparing for this evolution by changing its approach to information across the organization. The company began to treat information as an asset separate from the applications that “housed it” and focused on managing that asset more strategically—in particular, by creating truly global IT systems. In doing so, P&G offers a leading example of how a company can prepare itself both to meet compliance burdens and to compete effectively in the age of transparency. P&G is now well positioned to deal with the new compliance regulations and able to cut costs from the supply chain, accelerate innovation cycles, realign its internal IT resources, extend competitive advantage in M&A activities, and enable holistic views of stakeholder relationships. At P&G, compliance and performance optimization are two sides of the same coin. Transparency, via accurate, unified data and standardized global systems and process, is the foundation for both compliance and performance. Optimization and Compliance

Supporting systems are not much better than human middleware if they contribute to fragmentation in the enterprise. Without a centralized system, different methodologies, standards, and metrics evolve on their own, and it can be close to impossible to get all these processes speaking the same language. Often, fragmented information systems are a symptom of other geographic and organizational fractures that resist change. An integrated approach that carefully bridges these divides can head off compliance/ regulatory concerns and better serve the strategic interests of the organization.

P&G was investing in the concept of process optimization. In 1993, Process and Operations Research (OR) became an important part of a broader movement to rethink data management and...
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