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Wednesday, December 05, 2018

P&G Responds to Changing Customer Preferences

Intriguing directions, especially regarding customization.  How does a big company react to customer preferences,  when it can no longer direct them?

Q&A | How P&G Responds to Changing Customer Preferences   in SupplychainBrain

Phil Ruotolo, associate director of merchandising solutions customization with Procter & Gamble, details the consumer-products giant's strategy for adjusting to ever-shifting consumer preferences.

Q: How is P&G responding to changing customer preferences?

Ruotolo: Several years ago, we embarked on an innovative supply-chain solution. We created what we call mixing centers. It was the first time we had brought a portfolio of different P&G products into one location. The next question was, how do we think about merchandising in a more unique way? So we went to a 14-day order lead time. Previously, there was typically a four- to six-week window, and most of it was on a forecast. What inevitably happens is that you're building inventory of something that a customer might want to order.

In this new model, we differentiate the finished product in our customization locations, and then do all of the forecasting for our materials. Now we're able to react very quickly to what a customer might want, and can fulfill that within 14 days.

Q: So this is execution, not planning?

Ruotolo: Correct. It's taking all your favorite P&G products, and bringing them all together into one facing. As a consumer, you’re drawn to that display. We want to drive trials with consumers as they come across our products. Hopefully, they’ll make multiple purchases.   ..... " 

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