Meeting OUR customers’ needsMeeting OUR customers’ needsMeeting OUR customers’ needsMeeting OUR customers’ needs
Martin HerringtonMartin HerringtonMartin HerringtonMartin Herrington
Associate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics Purchases
Procter & Gamble, Western EuropeProcter & Gamble, Western EuropeProcter & Gamble, Western EuropeProcter & Gamble, Western Europe
• P&G – who are we?
• Who are our customers?
• What do they need?
• How can the 3PL industry help us meet our customers’ needs?
Who are we?
William ProcterCandle Maker
James GambleSoap Maker
What is our purpose?
“We provide branded products and services of superior quality and value that and value that improve the lives of the world's consumers, now and for generations to come.”
William ProcterCandle Maker
James GambleSoap Maker
Procter & Gamble today
Sales $83.5 Billion
# Brands ~300
# Billion-$ brands 24
# of employees: 138,000 in 80 countries
Consumers Approx 4 billion
That’s a lot of logistics
• 2 Million truckload
shipments a year
• 3 Million miles of over-
the-road shipments a the-road shipments a
day
• Worldwide shipments
across 3,600 sea
freight lanes
Intense Competition…
1
1.5
2
KaoKaoKaoKaoHenkelHenkelHenkelHenkel
SC SC SC SC
JohnsonJohnsonJohnsonJohnson
CloroxCloroxCloroxClorox
KKKK----CCCC
SCASCASCASCA
UnicharmUnicharmUnicharmUnicharmPepsicoPepsicoPepsicoPepsico
KraftKraftKraftKraft
NestleNestleNestleNestle
WalWalWalWal----MartMartMartMartTescoTescoTescoTesco
CostcoCostcoCostcoCostco
CarrefourCarrefourCarrefourCarrefour
AuchanAuchanAuchanAuchan
SainsburySainsburySainsburySainsbury
EdekaEdekaEdekaEdeka
S&CS&CS&CS&C
Baby/ Baby/ Baby/ Baby/
FamilyFamilyFamilyFamilyTZMOTZMOTZMOTZMO
HayatHayatHayatHayat
HenganHenganHenganHengan
DiaopaiDiaopaiDiaopaiDiaopai
Local/Low Cost ManufacturersLocal/Low Cost ManufacturersLocal/Low Cost ManufacturersLocal/Low Cost Manufacturers
Global ManufacturersGlobal ManufacturersGlobal ManufacturersGlobal Manufacturers
RetailersRetailersRetailersRetailers
-2
-1.5
-1
0.5
-2 -1.5 -1 -0.5 0.5
1 1.5 2
PfizerPfizerPfizerPfizer
GSKGSKGSKGSK
J&JJ&JJ&JJ&J
UnileverUnileverUnileverUnilever
L'OrealL'OrealL'OrealL'Oreal
ReckittReckittReckittReckittCloroxCloroxCloroxClorox
EnergizerEnergizerEnergizerEnergizer
RayovacRayovacRayovacRayovac
PhillipsPhillipsPhillipsPhillips
MerckMerckMerckMerckWyethWyethWyethWyeth
BeiersdorfBeiersdorfBeiersdorfBeiersdorf
Estee Estee Estee Estee
LauderLauderLauderLauder
AvonAvonAvonAvon
ShisheidoShisheidoShisheidoShisheido
MetroMetroMetroMetro
WalgreensWalgreensWalgreensWalgreens
KmartKmartKmartKmart
AholdAholdAholdAhold
KrogerKrogerKrogerKroger
AlbertsonsAlbertsonsAlbertsonsAlbertsons
SafewaySafewaySafewaySafeway
BJ’sBJ’sBJ’sBJ’s
S&CS&CS&CS&C
F&HCF&HCF&HCF&HC
HealthHealthHealthHealth
GilletteGilletteGilletteGillette
FamilyFamilyFamilyFamily
BeautyBeautyBeautyBeauty
CoronaCoronaCoronaCorona
NirmaNirmaNirmaNirma
SavitalSavitalSavitalSavital
AlicorpAlicorpAlicorpAlicorpColgateColgateColgateColgate
P&GP&GP&GP&G
How do we make logistics a
competitive advantage?advantage?
(Something ourcustomers will buy?)
The First Moment of Truth
“Thirty million times a day, P&G products face their first moment of truth when consumers stand in front of a store shelf, in front of a store shelf, and decide whether to buy a P&G brand or a competing product”.
AG Lafley, 2002
If the product isn’t on the shelf….If the product isn’t on the shelf….
…it is of no value…
…to us
…to the retailer
…to the consumer
What do our customers want from us?
• On Time In Full
• Lower inventory
• Promotions
• Increasing customisation
• Sustainability
How can the 3PL industry help?
TELL US WHAT
YOU ARE BEST ATYOU ARE BEST AT
How can the 3PL industry help?
ACT AS ONE COMPANYACT AS ONE COMPANY
How can the 3PL industry help?
SEND US THE TEAMSEND US THE TEAM
How can the 3PL industry help?
TELL US SOMETHING
WE DON’T ALREADY
KNOW
External collaboration plays a key role in nearly 50 per cent of P&G’s products. We’ve collaborated with outside partners for generations but the importance of these alliances has never been greater.
We want P&G to be known as the company that We want P&G to be known as the company that collaborates better than any other company in the world.
Chairman of the Board and
Chief Executive Officer
Thank you for listeningThank you for listeningThank you for listeningThank you for listening
Martin HerringtonMartin HerringtonMartin HerringtonMartin Herrington
Associate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics Purchases
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