first :
v Creating a new strategy & bringing the company's other core activities into alignment with the new business model .
v Account selection, in customer operations, channel strategy. core operations & management /organization structure .
* Belief :
Mastering supply chain creates a distinctive business model that shifts the prime objective of supply chain management from cost control to revenue enhancement to customer satisfaction .
*Problems :
Main concern was expressed over what would be done with the major accounts that did not "fit" the business model. P&G "supply network" :
1- Agent-based computer model was developed with Bios Group inc. In Santa Fe, New Mexico.
2- This network covers "15 billion consumers in 140 countries"
*Advantages:
1- Relaxation of rigid rules
2- More flexibility in distribution
3- More flexibility in manufacturing
Second:
In 2000 Procter & Gamble (P&G) was at a crucial point in its long history. One of the world’s best-known corporations and creator of some of the world’s most famous and successful brands was at a crossroads. Its CEO, Dirk Jager had left after a mere 18 months in the job. In March, the company announced it would not meet its projected first quarter earnings. The stock price was spiraling downwards – falling from $116 in January to $60 per share by March. The massive loss of $85 billion in market capitalization was matched by the loss of confidence within. It provoked media frenzy. Perhaps most poignantly, Ad Age headlined its front page story: “Does P&G Still Matter?” It was one of many column inches devoted to the apparently impending demise of the company.P&G’s new CEO, AG Lafley, provided an instant dose of reality: “We weren’t delivering on goals and commitments to analysts and investors. Major P&G businesses were underperforming; P&G brands were not delivering good consumer value: we weren’t consistently leading innovation, and prices were too high, they were too internally -focused. Consumed with the massive re-organization, and with so many people in new jobs, they were all spending too much time managing internal transactions.”
Third:
IDA launched its campaign against Procter & Gamble in 1989. Our goal to stop the company's blinding, burning, maiming and killing of thousands of animals each year in product tests that are cruel, outdated and not required by law. At the beginning of our campaign, Procter & Gamble was still using dogs in product tests. Now its TIDE OF TORTURE continues on rabbits, ferrets, hamsters, guinea pigs, mice and rats. And, while the company claims that it no longer uses dogs in product testing and that it has reduced the number of animals used by 90 percent, it refuses to back up any of its claims with facts. For example, Procter & Gamble refuses to release to the public information regarding the actual numbers and species of animals used, or the types of tests it forces these animals to endure.
forth:
Procter & Gamble Issues with Building Trust
1) P&G’s new Pampers diaper causes chemical burn has resulted in the U.S. Consumer Product Safety Commission launching an investigation. class action lawsuit was filed against the company.
2) Procter & Gamble is issuing a recall of some of its Pringles potato crisps.
Managers said the recall is voluntary, but comes after a recommendation from the Food & Drug Administration to the food industry.The affected products are:Pringles Restaurant Cravers Cheeseburger & Pringles Family Faves Taco Night.
3) Procter & Gamble is issuing a recall 10 shades of Clairol Natural Instincts hair coloring in the U.S., Canada and Puerto Rico, citing a component mismatch that could potentially cause an undesired color.The company said it discovered a mismatched sachet in the product's kits that could lead to a different color than intended. After that , company removed the products from stores.
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