P&G to redesign its supply chain because of rising fuel prices

Filed in archive Market Overview on June 29, 2008

In the light of the rising energy costs, P&G has started re-thinking its supply chain management model. In a recent article by Financial Times (you can read the article here), Keith Harrison, head of global supply at P&G mentioned that the new changes are because of energy price dynamics and sustainability movements as well as consumer preference change but among all these factors, energy cost have more importance for P&G.

The fundamental question which P&G is asking is: What is our business going to look like in 2015?

An example of the changes already affecting P&G strategic decisions are: Decision related to a babycare plant being built to meet growing demand in China, located at Xiqing in the northern province of Tianjin, rather than at an existing facility near Guangzhou in southern China.