Background Proctor and Gamble (P&G) was faced with a slipping brand loyalty due to heavy, ultimately unproductive, promotions in the retail marketspace. In an effort to increase brand loyalty P&G underwent a massive organization and transformation redesign that was realized through eliminating process that did not add value to customers who had stayed loyal to the brand. This, and systems improvements, resulted in accelerated adoption within the grocery industry, ultimately adding value for P&G, retailers, and end consumers.
Define acronyms CRP, EDI, OSB, ECR and explain. CRP - improving supply logistics and reducing channel inventory via a process that eventually was called continuous replenishment (CRP). This allowed for a new, more consistent
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Channel innovations that would enable grocery chains to compete effectively with low cost alternative retail formats. This included a huge shift away from buyers into category managers, a transition not many buyers were able to make.
How did the oldest total order management process work? P&G's oldest order management system consisted of category business planning and 6 steps: order generation, order acquisition, order processing, shipment control and billing, delivery execution, and financial transactions. Each of these six steps all had the same primary drawbacks: too many variables for success measures, inefficient data processing, highly manual processes, excessive paper used for transactions, on time complete shipment issues, low billing system accuracy with only 55 % of perfect orders, and high payment deductions on an increasing rate.
What improvements are made to the old process? The OSB rewrite initiative was a huge undertaking and investment, improvements upon the old process were centered around the speed and accuracy of communication from consumer sales to warehouse distributions. The creation of a database for pricing structure and product specifications streamlined several processes. Ultimately the OSB rewrite improved shipping systems, implemented the new pricing structure, reduced billing errors, and resulted in a dramatic increase in billing disputes settled in P&G's