SCM Analysis

Presenter: John Ant

04/06/09

Course: Supply Chain Management

Gillette Supply Chain Basic Analysis

ONE FACE TO THE COSTUMER

Gillette Mission around the world

Mission

The Timeline of Gillette Gillette Around the World Gillette Segments Sales Before change world & Europe SCM. Problem in current SCM After changing Europe & world SCM. Conclusion & Summery Bibliography

Table of contents

1901: American Safety Razor is founded by King C. Gillette. 1904: King Gillette's safety razor is patented. 1918: Gillette manufacturers razors and blades for soldiers

during World War I. 1942: The Cavalcade of Sports program is formed to oversee

the company's various advertising and promotional activities in athletics.

1967: Braun AG is acquired. 1971: Company is organized into four domestic divisions:

The Safety Razor Division; The Toiletries Division (featuring Right Guard antiperspirant); The Personal Care Division; and The Paper Mate division.

1991: Gillette ranks 20th among the Fortune 500. 1996: The company acquires battery manufacturer Duracell. 2005: The company merger with P&G.

http://www.fundinguniverse.com/company-histories/The-Gillette-Company-Company-History.html Slide 4 out of 12

History

Gillette Distribution around the World

A Generic cycle process according to different bibliography sources Slide 5 out of 12

World Wide

The Total Income in 2005:

6 B$ - Gillette, Duracell, Braun

4 B$ - Oral-B

Total : 10 B$

Segmentation of Sales:

Slide 6 out of 12www.wikinvest.com

The Share

Raw

Material

Service

Suppliers

Sub

contractor

purchasing

Contract

Management

Contracts & Purchasing

Subcontractor

Management

DistributorCenter

Distributorassembling

WarehouseWarehouse

Collaboration  

Gillette

Braun

Duracell

Oral B

Logistic Management

Parker Pen

Gillette

Braun

Duracell

Oral B

Production Engineering

Parker Pen

Plan, Measure & Control

General & Administration

Configuration   Catalogue

Maintenance

MRP & Inside Integration

Retail

Wholesaler

External Partner Internal PartnerOperational & Purchasing Management

Gillette World SCM - Before

Plan MeasurePlan Measure

Plan MeasurePlan Measure

Parts

Fin

ished

P

rod

uct

Finished Product

Plan

Measure

Measure

Plan

Measure

Plan

Plan

Measure

Plan Measure

ERP & CRM & DSS

Sales & Service &Financial

Plan Measure

Plan Measure

Customer

Financing

Control

Financing

Control

Financing

Control

A Generic cycle process according to different bibliography sources

Contract Contact

RFP

OperatingLogistics

Master Planning

Finishing good inventory

Pre factory Operation

Purchasing

Subcontractor

Sales forecasting

Factory Operation Order Processing

Transportation & Storage Warehousing DistributionPacking Design

DeliveryGoods

Wholesaler Retail

MRP

SupportingSystem Computer Design I.T Support

Cycle Order In Detail DurationDecision Making

0.5-1d

0.5-1d

1-10d

0.5-5d

0.5-3d

0d

0d

5-20d

Headquarters

Headquarters

Headquarters

Factory

Factory

Warehouse

IT System

Total L.T

A Generic cycle process according to different bibliography sources

Packing Design

78%Order fill Average

Q/N

5/L

61

61

13

5/L

19

5/L

Strategy SRM – PUSH – M.T.S & S.K.U

Slide 8 out of 12

The total L.T is too much long to stay in game.

No optimization of the allocation of resources.

There are to many decisions making in process.

The Location of Warehousing & Distribution aren’t efficient.

Low satisfaction form Customer (Retailer).The infrastructure don’t support

centralization of goods (Distributor Integration).

A Generic cycle process according to different bibliography sources Slide 9 out of 12

Rethinking Process

Contract Contact

RFP

OperatingLogistics

Master Planning

Finishing good inventory

Pre factory Operation

Purchasing

Subcontractor

Sales forecasting

Factory Operation Order Processing

Transportation & Storage Warehousing DistributionCross Docking

DeliveryGoods

Wholesaler Retail

MRP

SupportingSystem Computer Design I.T Support

Cycle Order In Detail DurationDecision Making

0.5-1d

0.5d

0.5d

0.5d

0.5d

0d

0d

2-3d

Headquarters

Headquarters

Headquarters

Factory

Factory

IT System

Total L.T

A Generic cycle process according to different bibliography sources

Packing Design

98%Order fill Average

Q/N

47

47

8

5

5/E

Strategy SRM –PULL/ PUSH –M.T.O & S.K.U

5/E

5/E

Slide 10 out of 12

Warehouse

61

61

13

19

5/L

5/L

5/L

Raw

Material

Service

Suppliers

Sub

contractor

purchasing

Contract

Management

Contracts & Purchasing

Subcontractor

Management

Cross Docking

DistributorCenter

DistributorIntegration

WarehouseWarehouse

Collaboration  

Gillette

Braun

Duracell

Oral B

Logistic Management

Parker Pen

Gillette

Braun

Duracell

Oral B

Production Engineering

Parker Pen

Plan, Measure & Control

General & Administration

Configuration   Catalogue

Maintenance

MRP & Inside Integration

Retail

Wholesaler

External Partner Internal PartnerOperational & Purchasing Management

Gillette World SCM - After

Plan MeasurePlan Measure

Plan MeasurePlan Measure

Parts

Fin

ished

P

rod

uct

Finished Product

Plan

Measure

Measure

Plan

Measure

Plan

Plan

Measure

Plan Measure

ERP & CRM & DSS

Sales & Service &Financial

Plan Measure

Plan Measure

Customer

Financing

Control

Financing

Control

Financing

Control

A Generic cycle process according to different bibliography sources

CP

FR

RF

ID

RFID

The Main SCM changes are:Changing to PULL/PUSH Strategy.Creating optimization of the allocation of

resources and improving the add value chain.

Using the CPFR approach to minimize inventory.

Centralization of decisions making.Consolidation of process to establish one face

to customer.Consolidation of IT systems and SCM

technology to found reliability infrastructure.

The Bottom Line

Slide 12 out of 12

KING CAMP GILLETTE THE CO-FOUNDER OF GILLETTE

The Spark

Patent drawing of the Razor

“The Man and His Wonderful Shaving Device”

The pictures from :http://en.wikipedia.org/wiki/King_C._Gillette

1. Hagstorm, R. G., (2004). The Warren Buffett Way (2th ed.),John Wiley & Sons, Inc, 132, pp.69-70. 2. Blanchard, D., (2007). Supply Chain Management Best Practice , John Wiley & Sons, Inc, pp.145-148. 3. Mckibben, G., (2007). Cutting edge – Gillette's Journey to global leadership, Harvard school press,

Boston, MA, pp.145-148. 4. Horn,S. S., Faulkenr. D., (2000). The dynamics of International strategy , Thomson, pp.7-8. 5. Cassia, L. Fattore, M. & Paleari, S, (2006) Entrepreneurial strategy – Emerging Business in declining

industries , Edward Elgar Publishing, pp.114-120. 6. Taylor, D. A., (2004). Supply chains – a manager's guide, Addison-Wesley, pp.4, 51. 7. Slater, D., (15/10/1997). Smooth operator – the global enterprise, CIO enterprise press, pp.60-65. 8. Srinivasan, R., (2005). International markets (3th ed.), Eastern economy edition, pp.222-227. 9. Van Weele, A. J., (2005). Purchasing & supply chain management (4th ed.), Thomson, and pp.76-77. 10. Taylor, D. H., (1997). Global cases in logistics and supply chain management, Cengage Learning

EMEA, pp.38-46. 11. Sources: Adapted from "Gillette Sharpens Collaboration, " industry Week, August 13, 2001, pp 22-23.

And David Gianatssio, "Gillette Starts Review of vendors, " Adweek, June 11, 2001, pp. 46-47.12. Lambert, D. M., (2008), Supply Chain Management: Processes, Partnerships, Performance (4th ed.),

Supply Chain Management Inst, pp.82-84. 13. O'Connor, M. C., (03/2006), Gillette Fuses RFID with product Launch, RFID Journal14. Schary, P. B., Schary, T. S., Mikkola, J. H. & Kotzab, H., (2007), Managing the global supply chain (3th

ed.), Copenhagen Business School Press DK, pp.129-130, 138, 152, 157, 164,167, 172, 44,102. 15. Mahajan, V, (2008). Africa rising, pp.89.

Bibliography

Thank for attention

Questions