GROUP MEMBERS

PRIYA GOSWAMI – 11

KAPIL KATEJA – 17

NIKESH MUTERJA – 27

RAHUL RAMCHANDANI – 36

KIRAN SHARMA – 51

KOMAL THARWANI – 54

SNEHA SANTWANI - 62

SUBMITTED TO -DR. (MRS.) MEENA VAZIRANI

P&G has a long history of earning the respect of its peers -fifth on the overall list this year, it's been ranked first in its industry every year it's been in the survey since 1997.

Procter & Gamble has incredible reach. It's the world's largest consumer-products company, with annual sales around $79 billion.

With commodity prices rising, P&G says it will have to raise prices on some products. But P&G's products, including Tide, Crest and many other household staples, form a strong foundation to weather volatile prices down the supply chain.

P & G believes in 2 moments of truth• First, when customer buys the product from shelf.• Second, when they actually use it and like it.

In order to handle the first moment of truth, it is important to have stocks available on shelf.

P & G realized that 48% of times their products were unavailable on the shelf when the customers wanted it.

They were losing a large quantum of sales and hence needed to take corrective action.

Innovation has long been the backbone of P&G’s growth.

As chairman, president, and CEO Bob McDonald notes, “We know from our history that while promotions may win quarters, innovation wins decades.”

People will innovate for financial gain or for competitive advantage, however McDonald says there needs to be an emotional component as well – a source of inspiration that motivates people thus giving a message that each innovation improves people’s lives.

Fortune 500 Rank 26

Total Number of Employees 129,000

Total Number of Brands 300

Percent of Animal Tested Products 80%

Total money spent on research on non-animal testing alternatives

602.7 Billion (by 2013)

Total Net Sales 78.9 Billion

Share of Toothpaste Market 70%

Total Net Sales of Top 26 Brands 1 Billion

About P & G

Consumer driven supply Network : Initiative

P & G redefined the supply chain strategy under the leadership of Keith Harrison – Head of Global Product Supply Division.

P & G decided to have a connection between the actual sales and the supply chain process.• Paradigm shift in viewing supply chain management from forecast driven to actual demand driven.

• Supply Network instead of supply chain because of information flow in all directions.

P & G started its supply chain from store shelves and moved back to its suppliers.

This operating strategy was called Consumer Driven Supply Network.

CSDN required P & G to create a responsive supply chain that would produce and supply products and supply products as per demand at the customer level.

Harrison was quoted saying:“We need to work off of real demand, so that we produce what is actually selling , not what is forecast to sell.”

Nine step process model

Developing Collaboration agreementCreating joint business plan Creating sales forecast Identifying exceptions for sales forecast Resolving collaborating on exception items Creating order forecast Identifying exceptions for order forecast Resolving/collaborating on exception items Generating orders

Success in productivity and cost saving

A “new-growth factory,” has helped the company strengthen both its core businesses and its ability to capture innovative new-growth opportunities.

Delivering products and services that make everyday life better for people around the world is the main motive of P & G. The opportunity to touch and improve lives comes with a responsibility to do so in a way that preserves the planet and improves the communities in which we live and work.

Enablers: stakeholders

In order to deliver the environmental and social programs, P & G engage employees and stakeholders. The objective is to equip all P & G employees to build sustainability thinking and practices into their everyday work.

P & G works transparently with stakeholders to enable continued freedom to innovate in a responsible way.

Conclusion

P & G focuses on sustainable efforts on improvements that matter, to make the most meaningful impact. Continuing to make progress in the focus areas of Products, Operations, and Social Responsibility, enabled by the employees and stakeholder partnerships.

Focused areas of P & G:

Products: Delight the customers with sustainable innovations.

Operations: Improving the environmental profile of P & G operations.

Social Responsibility: Improve children’s lives through the social responsibility programs.

Employees: Engaging employees to build sustainability thinking and practices into everyday work.

Stakeholders: Working transparently with stakeholders to enable freedom to innovate in a responsible manner.