17-03-2012, 10:52 AM
P&G’s success with the help of ERP
Procter and gamble is one of the leading companies engaged into manufacturing consumer goods. The company is headquatered at Ohio State. We are aware that there are many companies into consumer goods production and a few of them have been established since long, than how has P&G able to make its own space, survive and also lead the industry?
To surmount the localization and other regional issues P&G took the crucial step of going global.
This evolved the requirement of ERP
This helped P&G to create consumer driven supply chain
It designed a special three tier data model to integrate and harmonize with multiple SAP instances.
This facilitated their business to go global
This model was a standardized system with one specialized R/3 system, which was their global data client
With the help of web enabled support tool the standardized R/3 system worked well
The classic example to prove the success of implementation of ERP and supply chain is that:-
P&G is able to divide the supply chain geographically in to different regions like Americas, EMEA, and Asia/Pacific
They have taken care of the local requirements and hence no additional features are required to be added
Hence the ERP system is efficiently globally implemented.
Their R/3 system has been handling HR, Manufacturing and also raw material purchasing since 2003
SAP AG’s SCM software has changed the supply chain technology infrastructure and with the help of web based collaborative technologies P&G has tighten links with suppliers.
CONCLUSION
P&G has been able to build up the connectivity with suppliers as well as the customers with the help of ERP systems. This has helped the company to gain strategic competitive advantage and run the business efficiently. The introduction of SAP APO, R/3 and other SCM and CRM technologies, changed the way P&G operated and multiplied the success. Hence the correct implementation of ERP systems a prove to be very fruitful to the business.