Chapter 8
Supply-Chain Partnership between P&G and Wal-
Mart
Michael Grean and Michael J. Shaw
Abstract: This paper describes the development of channel partnership between a
manufacturer (Procter and Gamble, or P&G) and a retailer (Wal-Mart). Both
major players in their industries, P&G and Wal-Mart found a way to leverage
on information technology by sharing data across their mutual supply chains.
The resulting channel has e more efficient because channel activities are
better coordinated. There are reduced needs for inventories but greater returns
by focusing on selling what the customers want. All in all, the supply chain
between P&G and Wal-Mart has adopted a much better customer focus
through the channel partnership. And it is mutually beneficial. This integration
of the supply-chain information systems will e increasingly important
both for enhancing business-to-business merce and for
supporting the increasing volume and customization in business-to-consumer
merce.
Key words: Integrated Supply Chains, Information Sharing, CRP, Channel Partnership
1. INTRODUCTION
One of the major transformations in the rapidly evolving digital
economy occurs in the supply chains of both traditional and merce
companies. Information technology has enabled channel partners to trade
goods, share information, and integrate their processes, thereby reshaping
the anizational dynamics and resulting in more efficient channels.
Electronic integration of data and the automation of business practices has
driven costs down and built sales by satisfying consumer needs.
156 Michael Grean and Michael J. Shaw
This paper describes the development of channel partnership between a
manufacturer (Procter and Gamble, or P&G) and a retailer (Wal-Mart). Both
major players in their industries, P&G and Wal-Mart found a way to
leverage on information technology by sharing data across their mutual
supply chains (Figure 1). The resulting channel has e more effici
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