Procter & Gamble (PG) has recently signed a contract with Ryder System, Inc. (R) a leading global supply chain, warehousing, and transportation management solutions provider, to manage a part of its U.S./Mexico Logistics Network, including cross-border transportation operations.
Ryder’s North America Logistics Network offers a wide, end-to-end solution to manage material and product flows. By utilizing innovative technologies, highly trained logistics professionals, and proven processes, it provides a complete supply chain visibility and transportation optimization. This helps in-freight consolidation, reduces transit time, and provided exceptional safety and security processes to the cross-border operations.
In addition to this, Ryder has developed a Control Tower service, which significantly reduces inventory and cycle times.
Procter & Gamble is well-known for its impressive product development capabilities, marketing prowess, and a strong global distribution network. Management is exploring a number of areas to improve its gross margin, including purchasing, global sourcing, and consolidation of the distribution centers to reduce costs.
Procter & Gamble is planning the expansion of its distribution systems through unconventional retail channels. The company is currently focusing on four priority areas. These include Drug, Pharmacy and Perfumery, High Frequency Stores, Export Operations, and E-commerce.
In order to increase its profit, management is planning to tap faster growing developing markets. Developing markets include Latin America, China, Asia, Eastern Europe, the Middle East and Africa, which generate consumer product sales of approximately $70 billion.
Sales in these markets could reach $100 billion by 2010, larger than either the Western Europe or the North American markets. By the next decade, the developing markets might equal the combined value of North America and Europe.
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