Consumer Products Company Realises Supply Chain Savings of $1.5 Billion
Challenge
Leading global consumer products company Procter & Gamble needed to meet aggressive profitability targets. To do that, the company needed to reduce its overall inventory while still providing high levels of customer service.
Solution
P&G turned to Logility to develop a robust, structured and sustainable process for global inventory management, supported by deep supply chain intelligence.
Logility’s Inventory Optimisation solution makes AI-based recommendations for changing levels and placements of safety stocks across raw materials, work-in-process and finished goods, while maintaining P&G’s high service level targets. “What-if” analysis of current policies identifies multiple opportunities for additional reductions over time.
Impact
The Logility platform has driven $1.5 billion in overall financial savings for Procter & Gamble, with ongoing annual reductions predicted to be between 2% and 3%.
Within the division with the most complex supply chain, Beauty & Grooming, the brand has seen $100 million in savings from inventory reduction.
These cost savings have not come at the expense of customer service levels, as the business has seen service levels increase since implementing Logility. Thanks to Logility, P&G is on the road to achieving its vision of supply chain excellence through continuous improvement in its inventory management processes.
