Colgate-Palmolive Keeps the World Smiling

Topics: SAP AG, Oracle Corporation, Supply chain management Pages: 17 (6832 words) Published: August 30, 2011
Executive Summary
The objective of this RFI is to determine whether or not Colgate-Palmolive (C&P) should remain with SAP for their technology infrastructure, or if they should seek out other or new IT opportunities. C&P needs to determine what is important and whether or not IT supports it. We evaluate the current problem C&P is facing and the future trend of the technology. We reviewed SAP and its competitor, Oracle, to determine whether C&P should stay with their current provider and what advantages would be available to them from their current and other IT providers. C&P must have a very good handle on automation and rationalization. These two items being the two most common forms of organizational change because they are slow-changing and slow-moving. Not only that, but they also offer reasonable returns with minor risk (Laudon, Laudon, & Dass, 2010, p. 483). We also researched from C&P, SAP and Oracle’s annual report and find data and articles to prove our points. Colgate-Palmolive

Colgate-Palmolive (C&P) Company is a $15.3 billion multinational enterprise (MNE) that as of December 31, 2009 employs approximately 38,100 employees worldwide and serves people in more than 200 countries and territories. The company provides consumer products that help to make lives healthier and more enjoyable. They also focus on strong global brands in their core businesses — Oral Care, Personal Care, Home Care and Pet Nutrition. C&P is delivering strong global growth by following a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants, antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food (C&P Annual Report, 2009). Truly global in scope, C&P sells its products in over 200 countries and territories and approximately 75% of sales come from international operations (, 2010). Analysis of Organization’s Current Problems

IT management of projects in company at this size can be challenging. In the past, C&P developed its company into geographical regions and each region planned its own projects and deployed avaliable resources to build those systems (Laudon, Laudon, & Dass, 2010, p. 568). As global operations became more and more integrated, managers realize the need for C&P to have more global coordination and a global approach to IT resources. They need to manage the firm from the top to down. The managers need to know who is working on what project and what the current status of each project is. They also need to ensure they have a skilled project manager who is able to coordination the project while demonstrating efficient resources allocation. Simultaneously they must also have an efficient supply chain to help them manage and allocate their inventory. When C&P management began to looking for solutions and trying to analyze the problem the have incurred they found they needed an enterprise system to help manage the company from a global perspective instead of regional. C&P began using SAP’s enterprise resource planning system in 1993. Since the first year they began using the system, C&P has benefited, for example, the system has helped C&P reduce its finished inventory by half, while cutting order receipt-to-delivery time for its 50 top customers from 12 days to 5 days (Whiting, 1999), identifying savings opportunities has been enhanced by continuous improvement of globe approach program. Currently formal Global Funding the Growth programs exist that share, monitor, and track savings ideas in a searchable database accessible worldwide. Previously, savings programs have been locally or regionally driven. According to C&P’s annual report, technology also helps C&P to perform its greater responsibilities as “category captain” (Annual report, 2002, p. 15) . Trade customers give to top companies in each category this designation. In this role, C&P advises their customers on...

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Annual Report
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Unknown. (2009, June). 2009 annual report on form 10-k. Retrieved on May 26, 2010 from
Whiting, R. (1999). Colgate Goes Live With SAP Supply Chain. InformationWeek, (731), 30. Retrieved from Business Source Complete database on May, 24, 2010;jsessionid=BSJVMYOQH3TFTQE1GHOSKH4ATMY32JVN
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