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CRP Walmart & Procter and Gambel

This document discusses the Continuous Replenishment Program (CRP) between Procter & Gamble (P&G) and Walmart. Prior to 1988, the business relationship between the two companies was poor despite $375 million in annual sales. Through CRP, P&G and Walmart began sharing inventory and sales data using information technology. This allowed them to better coordinate their supply chains and replenish stock based on customer demand, reducing costs and inventories while increasing sales. The partnership also used data sharing to inform category management decisions around product selection, placement, pricing, and promotions.

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معتز العطار
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990 views8 pages

CRP Walmart & Procter and Gambel

This document discusses the Continuous Replenishment Program (CRP) between Procter & Gamble (P&G) and Walmart. Prior to 1988, the business relationship between the two companies was poor despite $375 million in annual sales. Through CRP, P&G and Walmart began sharing inventory and sales data using information technology. This allowed them to better coordinate their supply chains and replenish stock based on customer demand, reducing costs and inventories while increasing sales. The partnership also used data sharing to inform category management decisions around product selection, placement, pricing, and promotions.

Uploaded by

معتز العطار
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Continuous Replenishment Program

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CRP

Prepared By : Moataz Al-attar Channel of distribution Dr. Ahmed Sobhi - AAST

4/28/12

WM & PG needs to understanding of the business relationship prior to 1988 because. The business situation in 1988 between P&G and WalMart was broken. The business itself was $375 million and growing. In spite of this, the business relationship between the two companies was poor.

Backgrou nd

Relationship characteristics Between WM / P&G


Adversarial Transactional focus P&G subtitle style relationship edit Masterwere obsessed Click to WM did not like doing by day by day selling. There were no testing business with P&G. P&G or long organizations were term planning too complicated and inflexible. Fragmented processes Relationship and activities were managed by the buying and selling function only. The role that information systems played in the relationship was nonexistent. 4/28/12

P&G and Wal-Mart found a way to leverage on information technology by sharing data across their mutual supply chains. The resulting channel has become more efficient because channel activities are better Coordinated. the resulting channel has become more efficient because channel activities become better coordinated. There are reduced needs for inventories with increased sales by focusing on selling what the customers want. Together Clickuse edit Master subtitle styledrive out they to technology as a method to costs, and openly share data to better understand our joint customer the consumers. To emphasize the strong commitment to develop a mutually beneficial partnership

Situation Analysis

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IT Role In This Relationship


Creating Joint scorecards and measurements Driving out costs through automation Sharing data to better understand the consumer and drive sales linking the supply chain by using industry standards Electronic Data Interchange (EDI) to communicate key business documents. Purchase orders, invoices, advanced shipment notification, and financial payment.etc identifying and correcting pricing errors. A tool was built called the Customer Table Checking Tool

Click to edit Master subtitle style

4/28/12

One of the main benefits of sharing information is the reduced need for inventory. As a result, the supply chain achieves better performance in terms of financial returns, service level, and turn-around times. With CRP the manufacturer can use the information about the inventory level of the retailer to manage the frequency, quantity and timing of the shipments P&G used their information data highway to fundamentally change the replenishment process by linking Wal-Marts inventory data at their Click to edit P&Gs subtitle style distribution centers andMasterreplenished inventory based on movement of product through their Distribution centers

Information Sharing and Continuous Replenishment

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Category Management
Using the design technology of data sharing allowed P&G and Wal-Marts partnership to make better consumer based decisions. The key decisions made by the retailers include: What are you going to buy? Where are you going to put it (shelf location)? How are you going to price it? When should it be promoted?

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Click to edit Master subtitle style

Thanks

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