P&G’s Supply Chain Is Disaster Ready

P&G’s Supply Chain Is Disaster Ready

Proctor & Gamble augmented a disaster-decision-making control system called a “decision-making clearinghouse” with technology from Kinaxis. It’s intended to proactively centralize responses to supply chain disruptions.

Kinaxis, a Canadian tech provider, provides P&G with a cloud-based software called Rapid Response. The software maintains a digital map of P&G’s supply chain and bill of materials for every product.

Rapid Response alerts planners at P&G to an anomaly or exception in the normal course of business by analyzing data for patterns and triggers. The data come from internal sources such as P&G’s ERP system, and external data like the National Weather Service forecast. Planners then run scenarios to find the most cost-effective solution to avoid supply chain disruptions.

This post is based on the Supply Chain Dive article, How P&G created a ‘ready for anything’ supply chain, by Emma Cosgrove, June 3, 2019. Image source: Shutterstock / Dmitry Kalinovsky

Discussion Questions:

1. What is P&G’s risk management strategy for supply chain resiliency?

Guidance: P&G’s risk management strategy is proactive, centralized, and cloud-based.  It is proactive in that it allows P&G to make supply chain adjustment decisions when disruptions are on their way, not after they happen.  Continue reading

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Costly Greens: Romaine’s E. Coli Outbreak

Costly Greens: Romaine’s E. Coli Outbreak

The E. coli outbreak caused by contaminated romaine lettuce from Yuma, Arizona, killed 5 people and sickened over 200 others. The CDC stated on June 28th that the outbreak had run its course.

What are the financial effects on the supply chain?

Farmers shifted production out of Arizona into California.  Retailers cleared their shelves of the tainted greens.  Restaurants changed their menu or found new suppliers for different lettuce.  Disruptions have occurred throughout the lettuce supply chain, from farmers to consumers.

This post is based on the Fortune.com post, The financial impact of the romaine lettuce E. coli outbreak isn’t over, by Sarah Gray, May 30, 2018; on the CNN.com article, Five deaths, 197 illnesses in ongoing E. coli outbreak tied to romaine lettuce, by Susan Scutti, June 1, 2018, and on the CDC post, Multistate Outbreak of E. coli O157:H7 Infections Linked to Romaine Lettuce (Final Update), (no author cited), June 28, 2018. Image source: Author’s Image/Glow Images.

Discussion Questions:

1. How did the E. coli outbreak disrupt the lettuce supply chain?

Guidance: The disruption is found throughout the supply chain from farmers to retailers to restaurants to consumers. Consider Continue reading

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