P&G Blueprints Future Supply Chain

From Cincinnati Business Courier: “Procter & Gamble Co. is undergoing the most aggressive expansion in its history, with plans to build 19 production plants over the next four years, almost all in emerging foreign markets. The plan represents a 13 percent increase in P&G’s network of 145 facilities in 80 countries and reveals the changing face of its future consumer. Eighteen of the facilities will be constructed in developing markets, such as Malaysia, Romania, India and Pakistan. The 19th, a paper plant, is being built in Box Elder, Utah.”

In essence, P&G is building the supply chain for its future self. It is anticipating where there will be growth – such as in developing countries with giant populations and a fast-expanding gross domestic product – and planting itself ahead of demand.

It is a program that speaks to P&G’s scale as well as its stability. Not many organizations are committed to a multinational, multimillion-dollar expansion in the midst of a global economic crisis. Many of its biggest rivals are known to cut back on marketing, for example. But the plan is necessary if P&G is to reach the additional 1 billion consumers it intends to capture by 2010, said Keith Harrison, P&G’s global product supply officer. It now reaches 3.5 billion people, of 6.5 billion worldwide.” P&G Blueprints Future Supply Chain

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