Case Study: Managing With Analytics At Procter & Gamble

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Managing with Analytics at Procter & Gamble
Yeshwanth Kumar Lanka
A20299800
P&G was pressed by retailers to produce more concentrated powdered laundry detergents. P&G faced the problem of forecasting the sales. Different departments like procurement, manufacturing and supply chain were already under stress from the changes required to produce and deliver the new formulation. If the results increase without change in forecasts, P&G would be unable to meet demand and that could damage relationships with retailers and customers. On the other hand, forecasts cannot be aggressive. Such kind of forecasts would leave manufacturing with excess raw material, workers and inventory which would increase the transporting and warehousing costs. The corporate
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First is time series based forecasting. These models constructed forecasts using previous results. The first project, launched in 2010, is the Business Sufficiency program, which gives executives predictions about P&G market share and other performance stats six to 12 months into the future. At its core is a series of analytic models designed to reveal what’s happening in the business now, why it’s happening, and what actions P&G can take. These models captured the most recent data and conducted a large number of simulations to provide leaders with a measure of the likelihood that the business would be able to deliver on previously set goals and targets. Areas that seemed unlikely to meet objectives were highlighted so that leaders could quickly move to explore actions of “how” to rectify the situation and alert other parts of the organization that may be …show more content…
3. Marshalling resources behind the drive for good strategy execution and operating excellence.
• An important element should be to give the great degree of standardizations to the local management align their own design and global strategy.
• This will give a feeling of independence to the local management while the global standard will also be met.
4. P&G can use visual analytics like a Heat map to show all the markets in which P&G products compete and their relative market share. Having such displays in common use is especially important to P&G because it is an extremely global company, and prefers to develop managers by moving them regularly from one brand and geographical market to another. Consistent data visualization across the corporation reflects and supports that strategy.
5. The company has to balance the time and costs dedicated for restructuring and its business. Otherwise the whole purpose of restructuring will be

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