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Global supply chain analysis of P&G in the UK Essay Example

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Global supply chain analysis of P&G in the UK

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For handling operations in the UK always believes in keeping its supply chain networks absolutely shopper centric just like every other part of their business. Serving the needs of the customers has always been amongst the top priorities of the management and they have always emphasized on establishing end to end collaboration with their retail partners in order to achieve this objective (P&G, 2011a).P&G UK has been largely successful in transforming its supply chain network through the application of agent based model. Following the transformation of the supply chain in the company, the management even gave their verdict in favour of not calling its supply chain anymore. The Cincinnati based consumer goods giant which manufactures internationally recognized products such as Tide, Pampers and Gillette through its production facilities in the UK now calls its network of 5 billion customers based in over 140 countries as the ‘Supply Network’ (P&G, 2011a).According to the P&G management in the UK, the supply chain of the company denotes something that is sequential. Such a robust chain requires the management to handle extensive information in a sequence. The management believes that the supply chain has to operate as a network (like the internet) where each and every entity belonging to the supply chain will have equal accessibility to information. The agent based model implemented by the company’s UK division is complex in many ways, yet it has proven to be a fundamental determinant of the company’s success. The complexity of this model is evident in terms of its formation mechanism as the supply chain system comprise of local agents who act on few simple rules. One has the flexibility to comprehend and optimize the entire system by simply modelling and changing the behaviour exhibited by the agent. Through the application of this model, Procter and Gamble has become enormously successful in saving costs, reducing inventory consumption and waste as well as enhance service extended to customers.When the system is simulated in the company’s computers, the agent of the new model represents the individual entities of the supply system such as the stores, trucks and their drivers. The behaviour that is to be exhibited by each of those agents is programmed through regulations that emulate the actual behaviour. For example the software can be fed with codes such as unload shipments from trucks upon their arrival at the delivery warehouse,

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