Supply chain Innovation at P&G: Using Process Focus approach

P&Gs ex-CEO, Lafley, believed that The heart of a companys business model should be game-changing innovation. With that belief, He started to build a sustainable culture of innovation at P&G and establish innovation as a process that was superior to its competition. A process that is: Scalable, Repeatable, Sustainable, and hence Superior to its competitors.

The result was P&Gs continuous success as a profitable and growing business.

P&GS Innovation Culture

Rather than treating innovation as the job for those working in the company's R&D, Lafley treated innovation as a process that can be repeated and scaled. By focusing on the process, P&G increased its success-rate in introducing new brands and products from 15-20% in 2000 to the current rate of success that is almost a three-fold increase to 50-60%! Lafley discusses how P&G had never treated innovation as a scalable in the past because they had not integrated these innovation programs with our business strategy, planning, or budgeting process well enough. And how he went about creating a culture where everyone became involved in innovation, quoting again, even when youre operating, youre always innovating youre making the cycles shorter, or developing new commercial ideas, or working on new business models. And all innovation is connected to the business strategy.

That is the core concept behind creating advantages through capabilities, designing processes that are superior, because they provide one of the four basic tenets of advantage: time, cost, efficiency, or quality. In case of P&G, the process of innovation provides them more throughput (ability to introduce more number of new products and brands than its competition) and better time-to-market by shrinking the time it takes to introduce new products to the market.

Source: http://www.strategy-business.com

P&G Tops Among Global Supply Chains

AMR Research's annual list of the top 25 supply chains made the list for supply chain and financial excellence.

SOURCE: AMR Research

The new buzzword in supply chain management is the concept of "value chains," and P&G is all over it, states the AMR report. P&G has broken new ground in the area of transforming its supply chain into a value chain, starting with the consumer experience and designing its network to serve that master first and foremost. This means demonstrating some of the behaviors we look for in Top 25 companies, including embedded innovation, networked supply and demand shaping."

Procter & Gamble (PG), at No. 2, is the only company to have been in the Top 5 for six consecutive years.

Source: http://www.cio.com/