Download P&G case: Improving Customer Value through Process Redesign PDF

TitleP&G case: Improving Customer Value through Process Redesign
TagsStrategic Management Brand Supply Chain Retail Customer Relationship Management
File Size441.1 KB
Total Pages12
Document Text Contents
Page 6

Importance of New IT for P&G

Areas of Improvement KPI

Increased retail sales through CRP retailers : Due to increased
availability of P&G products.


Expansion of product line (exp Diapers), efficient management of
increased number of SKUs.

Problems with order quality: Due to removal of human buffer, data entry
errors were not caught at early stages leading to collection issues.

Cost reduction : Due to elimination of excess capacity because of better
control on demand variations


• CRP and EDI Systems of




Areas of Improvement KPI

Reduction in time delays and paperwork

Reduction in transaction costs.

Inventory reductions and service level improvements, reduction in stock outs.

Areas of Improvement KPI

Increased availability of P&G products due to reduced stock outs.

Reduced fluctuations in prices ; reduced dissonance

Page 7

Importance of New IT for P&G (contd.)

Areas of Improvement KPI

Financial Transactions : Improvement in billing accuracy,
perfect orders, deductions resolved in favor of P&G

Billing Accuracy: 10%
Perfect Orders: 20%
Deductions: 50%

Improved on time delivery, reduction in returns and refusals Perfect orders : 20%

• Order, Shipping and Billing


Areas of Improvement KPI

Improvement in order quality, shipset quality and reduction in
order entry errors, reduction in order cycle time

Order Quality: 35%

Reduction in price and promotion changes per day Change 55 : 1 p.d

Constant procurement costs for retailers, elimination of forward
buying by retailers

Areas of Improvement KPI

Increase in brand loyalty as promotions reduced, reduced
customer dissonance




Page 12

Thank You.

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