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UNILEVER VS. PROCTER&GAMBLE

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jess Liang

on 3 October 2015

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Transcript of UNILEVER VS. PROCTER&GAMBLE

UNILEVER

VS.

PROCTER & GAMBLE
By Joshua Cruz, Jessica Liang, Tricia Pagkalinawan, Sahana Thani
UNILEVER
WHO THEY ARE?

A multinational consumer good company

A globally successful organization

Owns over 400 brands

160,000 employees worldwide
UNILEVER SUPPLY CHAIN:
PROCTER & GAMBLE SUPPLY CHAIN:
UNILEVER
VS.
PROCTER & GAMBLE

A consumer goods company that is located in many locations around the world

Products are sold in 170 countries

264 manufacturing sites worldwide

Headquarters in London, United Kingdom



UNILEVER

WHERE THEY ARE?
UNILEVER

WHAT THEY DO?
Unilever is organized into four main divisions:

1. Foods
2. Refreshment (beverages and ice cream)
3. Home Care
4. Personal Care
PROCTER & GAMBLE
WHO ARE THEY?
PROCTER & GAMBLE

WHERE THEY ARE?
PROCTER & GAMBLE
WHAT THEY DO?
SIMILARITIES:
DIFFERENCES:
DEMAND MANAGEMENT



DEMAND MANAGEMENT
UNILEVER
VS.
PROCTER & GAMBLE
ADVANTAGES:
UNILEVER
VS.
PROCTER & GAMBLE
ORDER FULFILLMENT & CUSTOMER SERVICE
ORDER FULFILLMENT & CUSTOMER SERVICE
UNILEVER
VS.
PROCTER & GAMBLE
PROCUREMENT AND SOURCING
UNILEVER
VS.
PROCTER & GAMBLE
PROCUREMENT AND SOURCING

UNILEVER
VS.
PROCTER & GAMBLE
PRODUCTION AND OPERATIONS MANAGEMENT
UNILEVER
VS.
PROCTER & GAMBLE
PRODUCTION AND OPERATIONS MANAGEMENT
UNILEVER
VS.
PROCTER & GAMBLE
INVENTORY MANAGEMENT
UNILEVER
VS.
PROCTER & GAMBLE
SIMILARITIES:
DIFFERENCES:
Unilever - SmartOp
Procter & Gamble - RetroTech (ActivSystem)
INVENTORY MANAGEMENT
UNILEVER
VS.
PROCTER & GAMBLE


(Unilever) -
Reduces your cost to build and maintain customized
Reduces the risk of carrying excess of inventory
Improve forecast accuracy
TRANSPORTATION AND FREIGHT LOGISTICS
TRANSPORTATION AND FREIGHT LOGISTICS
ADVANTAGES:
WAREHOUSING AND DISTRIBUTION CHANNELS
SIMILARITIES:
WAREHOUSING AND DISTRIBUTION CHANNEL
(Procter & Gamble) -
Plans accurately even through challenging seasonal swings and forecast accuracy


Limits CO2 emissions
The usage of transportations such as rail, sea and truck
Bringing distribution centers closer to its customer and ensuring trucks are fully utilized in both directions
UNILEVER
VS.
PROCTER & GAMBLE
An American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States.

Serve 4.4 billion consumers in more than 180 countries
Procter & Gamble is divided into 3 subdivisions:

1. Beauty and Grooming
2. Health and Well-being
3. Household Cleaning Products


P&G was founded in the US in October 31, 1837

Entered the Australian & New Zealand markets in 1985

In 2014, P&G recorded $83.1 billion in sales
(Procter & Gamble) -
Ability to keep in touch with suppliers and retailers to keep up to date with demand

(Unilever) -
Provides business with valuable information that assists organisations to make future decisions
If the quality of forecasting is near perfect than the organisation will strive and benefit a great amount from it.
Terra technology get as close to perfect when it comes to forecasting






(Procter & Gamble) -
If systems aren’t updated, accurate information will not be provided to allow forecasting.

(Unilever) -
It is however not possible to accurately forecast the future
Making a bad forecast can result into a devastation for the organisation



(Procter & Gamble) -
Integrated with suppliers to cut materials inventories, collaborated with customers to reduce inventory at retail, built better information systems.
Invests in consumer research to understand what customers want.

(Unilever) -
Strong and healthy relationships = Positively impact customers which grows the availability of their products to consumers.
Efficient time delivery = customers will be satisfied
Reduces inventory by 20%, forecasts error by 50%





(Procter & Gamble) -
Highly differentiated products = lots of rushing.
Higher risks of inventory obsolescence as well as higher risks of customer outages.

(Unilever) -
Weak and unhealthy relationships = negatively impact unilevers business terms with customers which reduces the availability of their products to consumers.
Identifying social and consumer needs can be difficult sometimes and can lead to negative reinforcements and could potentially lose customers





ADVANTAGES:
DISADVANTAGES:
SIMILARITIES:
DIFFERENCES:
ADVANTAGES:
(Procter & Gamble) -
Has an eco-smart design and operations, which is considered to be industry leading in its breadth and scope.
Invest efforts to save waste, water, energy and to reduce emissions.
Control Tower, a logistics optimization program, is a holistic approach to manage the movement of raw materials, as well as the finished product.

(Unilever) -

Sustainability is the core of production and operations
• Reduced waste for production
• determines consumers needs
• holds brands to significant value to consumers

(Procter & Gamble) -
Very dependent on one another; if one section stops, entire production comes to a halt.
Needs to have a smoother streamline process.

(Unilever) -
If something goes wrong in one department, it will affect all the other departments of Unilever
If system software get hacked or malfunctions then it will effect production


(Procter & Gamble) -
Procurement department provide assistance in all key steps of the purchasing process.
Act as a key contact and liaison between plants, sourcing, suppliers and accounts payable.

(Unilever) -
Sustainable sourcing
Elimination of deforestation
Delivers sustainable agriculture and the development of smallholder farmers
Receive highest standards from suppliers




(Procter & Gamble) -
.
Reduced buyer’s opportunities to save money by forcing suppliers to cut their profit margins.

(Unilever) -
Suppliers might not agree with Unilevers visions/actions
Suppliers may not want to give materials for a lowered price
Processes might not integrate well with suppliers



DISADVANTAGES:
DISADVANTAGES:
ADVANTAGES:
UNILEVER
VS.
PROCTER & GAMBLE
ADVANTAGES:
DISADVANTAGES:
DISADVANTAGES:
UNILEVER
VS.
PROCTER & GAMBLE
UNILEVER
VS.
PROCTER & GAMBLE
UNILEVER
VS.
PROCTER & GAMBLE
SIMILARITIES:
DIFFERENCES:
Both use a system of technology to keep in touch with their suppliers and retailers to keep up to date with demand
(Unilever) -
Combines and analyses their:
internal sales projections
retail customer promotions
and external market research before enter information into the demand planning system.
Both are focused on building strong relationships with their customers
(Unilever) -
Employees identify social and consumer needs to grow their brands, market them and manufacture and distribute them.

Procter & Gamble -
Invest time and money into consumer research to understand what their customers want.
SIMILARITIES:
DIFFERENCES:
Unilever has two sets of procurement measures financial measurement and non-financial measurements. P&G just own the entire price issues investigation and resolution for invoices.
Procurement department act as a key contact and liaison between suppliers
SIMILARITIES:
DIFFERENCES:
P&G has a system called Control Tower, which is a logistics optimization program to manage the movement of raw materials as well as the finished product
If one department in the cycle stops, the entire production comes to a halt
Sustainability is the main focus for both brands

Optimize service to our customers without the risk of carrying excess inventory
Allows to capture growth opportunities
More accurate forecasting
Maximizes inventory savings, service level optimization
ADVANTAGES:
DISADVANTAGES:
(Unilever) -
It can reduce however not eliminate the business risk
Requires more training
P&G operate a huge and complex transport network but is designing a more sustainable and cost effective approach to its freight operations
(Procter & Gamble) -
The ACTIV system delivers peak shipping rates of twice the average annual day and three times the average annual hour.
Fleet of 30,000 trucks delivering to 4 billion customers, P&G control a complex transport network with a giant environmental as well geographic footprint.
(
Procter & Gamble
and
Unilever
) -
Transferring from road to rail, to reduce waste and carbon footprint
WHICH MODEL IS MORE EFFICIENT AND EFFECTIVE?
WHY
?
INNOVATED SUPPLY CHAIN MODEL:
THANK-YOU
FOR LISTENING TO OUR
PRESENTATION!


(Procter & Gamble) -
The use of pallet flow storage system from interroll = compact and space saving system.
(Unilever) -
Customer Order fulfillment is achieved consistently on time, and as requested, even when demand spikes occur.
Channel distributes the product to the customer = intermediaries add value to the product because they use a lot of wholersalers and they keep paying for shipping that makes the price go up.

The customers connect directly with the channel when they order their products
(Unilever) -

Requires more user training programmes
TerraTech
Full transcript