Continuous Productivity to Fuel Growth. Agile and Accountable Organization to Drive Results.
P&G is implementing significant productivity improvements to fuel sales and earnings growth and investment in brands and categories. We successfully executed a $10 billion cost and cash productivity program—and we have started another $10 billion effort—to fuel investments, offset headwinds and increase margins.
We are executing the largest supply chain transformation in P&G’s history—in North America, followed by Europe and Latin America, and with plans in India, Middle East and Africa. This redesign puts 80% of our product shipments within 24 hours of retailers. This helps to improve in-stock levels, which drives both top-line and bottom-line for our retailers.
Our redesign puts 80% of our product shipments within 24 hours of retailers.
P&G is simplifying its organization design through one organizing principle: the business is run by category. All operations in the Company are in service to the strategies of the 10 product categories. Product categories own responsibility for innovation, manufacturing and marketing. Category leaders have ownership and accountability all the way through to the staffing levels of sales people in the market. These category leaders have full profit and loss responsibilities. They are focused, agile, and accountable. We call this approach the end-to-end model.
In total, the end-to-end markets account for 70% of company sales. For the remaining 30% of sales, which take place in smaller countries, it doesn’t make economic sense to organize this way. Therefore, in smaller markets, we’re implementing a new freedom-within-a-framework approach, enabling these markets to be faster and more agile.
Category leaders have full profit and loss responsibilities. They are focused, agile, and accountable.