FEB, 2024

Procter & Gamble (P&G) has been on a digital journey, investing significantly in modernizing its operations, especially in supply chain, retail, and sustainability. One of its most recent groundbreaking moves in this digital evolution is the introduction of a collaborative supply chain strategy – the Digital Supply Chain Service Platform, aimed at supporting retail partners across North America.

Revamping Retail Dynamics with Digital Solutions

The Digital Supply Chain Service Platform empowers P&G to better serve their retail partners and consumers, streamlining end-to-end supply processes and establishing an enduring competitive advantage. Anticipated to yield up to $1.5 billion in annual cost savings, with reinvestments to fuel expansion.

P&G’s hefty investments in digital capabilities have significantly amped up productivity and cost-efficiency, notably through the automation of channel distribution centers and supply warehouse processes.

Furthermore, P&G is actively digitizing retail executions, deploying data-driven insights to fine-tune shelf recommendations for retail partners, resulting in more precise sales forecasts with optimized resource utilization.

Digital tools guide P&G team on campaign investments shelf suggestions. These digital technologies are propelling top-notch retail execution, giving P&G a competitive edge in today’s dynamic market.

The ultimate aim of digital transformation in these realms is to become a more empowered, agile, and accountable organization, capable of seamless support and reducing redundancies.

Utilizing AI for Smart Routing and Procurement Optimization

Leading the footsteps of numerous consumer packaged goods (CPG) companies, P&G is delving into a spectrum of promising applications involving artificial intelligence.

P&G’s Global Supply Chain 3.0 plan is engineered to bolster supply chain resilience and visualize cost savings through automation and data analytics.

This comprehensive plan enables P&G to collaborate holistically with retailers and retail partners, optimizing the entire supply chain rather than confining improvements to only specific segments.

The plan also integrates data and machine learning algorithms to fine-tune van scheduling and routing, minimize idle time, and leverage AI tools for replenishment optimization, procurement, and smart routing planning.

With the company’s “AI-first” philosophy, including the development of a machine learning platform employed in 80% of their global operations. the “AI factory” has accelerated the speed and efficiency of their data engineers tenfold.

In the era of AI, rapid advancements are unfolding.