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How P&G Supply Chain 3.0 Pilots Are Slashing Costs and Increasing Productivity

How P&G Supply Chain 3.0 Pilots Are Slashing Costs and Increasing Productivity
As part of Procter & Gamble’s supply chain 3.0 initiatives, the company has launched a series of transportation pilots that leverage automation and sustainable practices to increase productivity and lower costs.

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P&G Supply Chain 3.0 Pilots Slashing Costs and Increasing Productivity

Procter & Gamble has launched a series of transportation pilots as part of its supply chain 3.0 initiatives, aiming to increase productivity and lower costs. The company's COO, Shailesh Jejurikar, stated that the goal is to implement end-to-end transformation, including both physical flows and changes related to data, to unlock value and enable consistent productivity savings.

One of the initiatives involved partnering with a Canadian retailer to eliminate empty miles, reducing transportation emissions and increasing driving profitability. P&G is also piloting the use of driverless trucks in North America and testing autonomous mobile robots at one of its mixing centers to improve efficiency in loading and unloading trucks.

These efforts are already showing results, with P&G reporting an increase of $400 million in sales from 2019 to 2024 in its India-based business due to supply chain 3.0 initiatives. The company has also implemented geotagged deliveries and AI- and machine learning-powered ordering solutions for distributors to predict distributor shipments and replenishment allocation.

According to Jejurikar, these improvements have provided rich learnings that the company continues to build upon, as it aims to transform its supply chain.

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