Meeting OUR customers’ needsMeeting OUR customers’ needsMeeting OUR customers’ needsMeeting OUR customers’ needs

Martin HerringtonMartin HerringtonMartin HerringtonMartin Herrington

Associate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics Purchases

Procter & Gamble, Western EuropeProcter & Gamble, Western EuropeProcter & Gamble, Western EuropeProcter & Gamble, Western Europe

• P&G – who are we?

• Who are our customers?

• What do they need?

• How can the 3PL industry help us meet our customers’ needs?

Who are we?

William ProcterCandle Maker

James GambleSoap Maker

What is our purpose?

“We provide branded products and services of superior quality and value that and value that improve the lives of the world's consumers, now and for generations to come.”

William ProcterCandle Maker

James GambleSoap Maker

Procter & Gamble today

Sales $83.5 Billion

# Brands ~300

# Billion-$ brands 24

# of employees: 138,000 in 80 countries

Consumers Approx 4 billion

That’s a lot of logistics

• 2 Million truckload

shipments a year

• 3 Million miles of over-

the-road shipments a the-road shipments a

day

• Worldwide shipments

across 3,600 sea

freight lanes

Intense Competition…

1

1.5

2

KaoKaoKaoKaoHenkelHenkelHenkelHenkel

SC SC SC SC

JohnsonJohnsonJohnsonJohnson

CloroxCloroxCloroxClorox

KKKK----CCCC

SCASCASCASCA

UnicharmUnicharmUnicharmUnicharmPepsicoPepsicoPepsicoPepsico

KraftKraftKraftKraft

NestleNestleNestleNestle

WalWalWalWal----MartMartMartMartTescoTescoTescoTesco

CostcoCostcoCostcoCostco

CarrefourCarrefourCarrefourCarrefour

AuchanAuchanAuchanAuchan

SainsburySainsburySainsburySainsbury

EdekaEdekaEdekaEdeka

S&CS&CS&CS&C

Baby/ Baby/ Baby/ Baby/

FamilyFamilyFamilyFamilyTZMOTZMOTZMOTZMO

HayatHayatHayatHayat

HenganHenganHenganHengan

DiaopaiDiaopaiDiaopaiDiaopai

Local/Low Cost ManufacturersLocal/Low Cost ManufacturersLocal/Low Cost ManufacturersLocal/Low Cost Manufacturers

Global ManufacturersGlobal ManufacturersGlobal ManufacturersGlobal Manufacturers

RetailersRetailersRetailersRetailers

-2

-1.5

-1

0.5

-2 -1.5 -1 -0.5 0.5

1 1.5 2

PfizerPfizerPfizerPfizer

GSKGSKGSKGSK

J&JJ&JJ&JJ&J

UnileverUnileverUnileverUnilever

L'OrealL'OrealL'OrealL'Oreal

ReckittReckittReckittReckittCloroxCloroxCloroxClorox

EnergizerEnergizerEnergizerEnergizer

RayovacRayovacRayovacRayovac

PhillipsPhillipsPhillipsPhillips

MerckMerckMerckMerckWyethWyethWyethWyeth

BeiersdorfBeiersdorfBeiersdorfBeiersdorf

Estee Estee Estee Estee

LauderLauderLauderLauder

AvonAvonAvonAvon

ShisheidoShisheidoShisheidoShisheido

MetroMetroMetroMetro

WalgreensWalgreensWalgreensWalgreens

KmartKmartKmartKmart

AholdAholdAholdAhold

KrogerKrogerKrogerKroger

AlbertsonsAlbertsonsAlbertsonsAlbertsons

SafewaySafewaySafewaySafeway

BJ’sBJ’sBJ’sBJ’s

S&CS&CS&CS&C

F&HCF&HCF&HCF&HC

HealthHealthHealthHealth

GilletteGilletteGilletteGillette

FamilyFamilyFamilyFamily

BeautyBeautyBeautyBeauty

CoronaCoronaCoronaCorona

NirmaNirmaNirmaNirma

SavitalSavitalSavitalSavital

AlicorpAlicorpAlicorpAlicorpColgateColgateColgateColgate

P&GP&GP&GP&G

How do we make logistics a

competitive advantage?advantage?

(Something ourcustomers will buy?)

The First Moment of Truth

“Thirty million times a day, P&G products face their first moment of truth when consumers stand in front of a store shelf, in front of a store shelf, and decide whether to buy a P&G brand or a competing product”.

AG Lafley, 2002

If the product isn’t on the shelf….If the product isn’t on the shelf….

…it is of no value…

…to us

…to the retailer

…to the consumer

What do our customers want from us?

• On Time In Full

• Lower inventory

• Promotions

• Increasing customisation

• Sustainability

How can the 3PL industry help?

TELL US WHAT

YOU ARE BEST ATYOU ARE BEST AT

How can the 3PL industry help?

ACT AS ONE COMPANYACT AS ONE COMPANY

How can the 3PL industry help?

SEND US THE TEAMSEND US THE TEAM

How can the 3PL industry help?

TELL US SOMETHING

WE DON’T ALREADY

KNOW

External collaboration plays a key role in nearly 50 per cent of P&G’s products. We’ve collaborated with outside partners for generations but the importance of these alliances has never been greater.

We want P&G to be known as the company that We want P&G to be known as the company that collaborates better than any other company in the world.

Chairman of the Board and

Chief Executive Officer

Thank you for listeningThank you for listeningThank you for listeningThank you for listening

Martin HerringtonMartin HerringtonMartin HerringtonMartin Herrington

Associate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics PurchasesAssociate Director, Logistics Purchases