South Carolina International Trade Conference May 30, 2007 SUPPLY CHAIN SUPPLY CHAIN CAPABILITY CAPABILITY and the and the “ “ First Moment First Moment of Truth” of Truth”
South Carolina International Trade Conference May 30, 2007 SUPPLY CHAIN CAPABILITY and the “First Moment of Truth” SUPPLY CHAIN CAPABILITY and the “First.
Dec 13, 2015
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South Carolina International
Trade Conference
May 30, 2007
SUPPLY SUPPLY CHAIN CHAIN CAPABILITYCAPABILITY
and theand the
““First Moment First Moment of Truth” of Truth”
AGENDAAGENDA P&G… Brief introduction
First Moment of Truth
Logistics affect on the FMOT
How P&G ensures logistics
excellence… and “wins” at
FMOT
Two brothers-in-law… one made
soap, the other candles.
Common raw material… tallow.
Father-in-law suggested
partnership.
April 12, 1837… William Procter &
James Gamble formalized their
business by pledging $3597 each.
William Procter (1801-1884)
James Gamble (1803-1891)
IN THE BEGINNINGIN THE BEGINNING……
P&G AT A GLANCE…
~$75,000,000,000 in sales
$4B logistics spend
275,000+ TEUs
3500 lanes (~25% touch U.S.)
Over 500 whses… 45+MM sq. ft.
Selling in 160 countries, Mfg. in 90
135,000 employees
MAJOR ACQUISITIONS: 1957 – Charmin Paper 1967 – Folgers
Coffee 1982 – Norwich
Eaton 1985 – Richardson-
Vicks 1989 – Noxell/Cover
Girl 1990 – Old Spice 1991 – Max Factor
1991 – Max Factor 1994 – Giorgio Beverly
Hills 1997 – Tambrands 1999 – Iams 2001 – Clairol 2003 – Wella 2005 - Gillette
But most But most of all… of all… we’re a we’re a
company company of Brandsof Brands
2121 - - BILLION $ BILLION $ BRANDSBRANDS……
Rather than talk external
processes, I’ll focus on P&G’s
attempt to ensure a successful
end result… or what all people
in P&G know as the…
First Moment of TruthFirst Moment of Truth
WHAT IS THE FMOT?WHAT IS THE FMOT? Two “moments of truth”…
When the consumer BUYS.
When the consumer TRIES.
Need to “win” both
Logistics affects the 1st… giving an opportunity to win at the 2nd!
What does “FMOT” mean toWhat does “FMOT” mean to logistics professionalslogistics professionals??
It’s what we do… move product at the right time/price/condition
Why is P&G successfulWhy is P&G successful?? Supply chain
coordination/collaboration
Innovation/technology
Logistics sourcing
Training
Coordination/Coordination/CollaborationCollaboration Matrix organization
GBUs, MDOs, GBS, Corp. Functions
Horizontal Process Networks
End-to-End supply chain management
Total delivered costs… raw material to shelf
Business continuity planning
“CarrierConnect” Internal development/external acquisition… shipment
forecasting, scheduling, routing guide compliance, tracking/tracing, etc.
Distribution Center/Warehouse technology Picking, automation, contract innovation, etc.
Other cross-border applications Container GPS, duties, free trade agreements, etc.
Global order management platform Global Analytics Externally Linked Solutions
Draw on supplier capabilities & explore alternatives
Innovation/Innovation/TechnologyTechnology
Supplier relationship management Not done casually or quickly Takes resources, time, commitment
Principles, Values, Purpose Best total value “Fits” (strategic, operational, chemistry) *
Selection technology* Logistics Outsourcing, A Management Guide - Clifford F.
Lynch
Logistics Logistics SourcingSourcing
TrainingTraining Hire at entry level and promote from within
Critical focus on training & development
Internal “colleges”, external opportunities
Formal qualification for advancement
Centers of Expertise
“Success Drivers” Purpose/Values/Principles Success of P&G and employees is inseparable
P&G’s “Wall Street” commitments, require
bottom line growth of $4B-$5B/yr.
Most don’t initially think of successful
logistics as a requirement for this.
But the power of doing logistics right… the
first time… is recognized & rewarded in P&G.
Systems/processes are in place to ensure
we move cargo to the shelf with excellence…
to win at the First Moment of TruthFirst Moment of Truth!
In Conclusion…In Conclusion…
We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.
PURPOSEPURPOSE
1. Leadership2. Ownership3. Integrity4. Passion for winning5. Trust
1. Respect for all individuals2. Interest of P&G & employees are
inseparable3. Strategically focused4. Innovation is the cornerstone of success5. Externally focused6. Value personal mastery7. Seek to be the best8. Mutual interdependency is a way of life
VALUESVALUES
PRINCIPLESPRINCIPLES
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