Page No.

1. Introduction…………………………………………02
2. Distributor of Gillette in Pakistan…………..03
3. Market Share……………………………………….03
4. Information Sharing With Supplier………..04
5. Supplier Capability of auditing……………….04
6. Manufacturing flexibility……………………….04
7. Product Standardization………………………..04
8. Lead time: …………………………………………...04
9. Delivery Speed………………………………………04
10. Product Innovation………………………..05
11. The Old Supply Chain of Gillette……..05
12. Production Plant in Poland……………..05
13. Consolidating DC…………………………..06
14. Jebal Ali (GAC)……………………………..06
15. Agility DC……………………………………..07
16. Conclusion for the old supply chain…07
17. New Supply chain of Gillette…………..08
18. Conclusion of new supply chain …....09
19. Improved Demand Plannig……………10
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Introduction:

The project discusses “Supply Chain Management of Gillette”.

The Gillette Company is a globally focused consumer products
company which seeks competitive advantage in quality & value added
personal care & personal use products Every day, more than one
billion people around the world use one or more Gillette products.
From blades and razors to toothbrushes, from alkaline batteries to
oral care appliances, Gillette is the worldwide leader in nearly a dozen
major consumer product categories.Gillette also holds the Number
One position worldwide in selected female grooming products, such
as wet shaving products and hair removing devices.
Gillette is also the World Leader in alkaline batteries, toothbrushes
and oral care products & small electrical / kitchen appliances
Here's the inside story of a remarkable comeback of Gillette. Not only
this after Gillette started with P&G (Proctor & Gamble), bottomline
improved phenomenally all across globe. Their Supply chain is till
date managed by TNT Worldwide and their major trouble of
inventory and logistics is totally under control with impressive cost
cutting factor, which eventually leads to their major bottomline
appreciation. Gillette is back in the market with a bang and this all
happened due to combined efforts of TNT & Gillette.
GILLETTE COMMERCIAL OPERATIONS

1. Gillette North America

2. Gillette Latin American
3. Gillette Europe
4. Gillette Asia Pacific
5. AMEE - Africa Middle East & Eastern Europe
AMEE East has India under its operations along with SW Asian
countries
(Sri Lanka, Bangladesh, Nepal & Maldives)
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Distributor of Gillette in Pakistan

Agility is one of the world’s leading providers of integrated logistics to

businesses and governments. It is a publicly traded company with
$6.8 billion in annual revenue and more than 37,000 employees in
over 550 offices and 120 countries. Agility brings efficiency to supply
chains in some of the globe’s most challenging environments, offering
unmatched personal service, a global footprint, and customized
capabilities in developed and emerging economies alike.

Market Share:
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70% of its sales, 72% of its profits and 80% of its employees are
outside the U.S.

Information Sharing With Supplier:

Gillette is the foreign based company and its all products are
manufactured in lodz- Poland, UK, and Germany and it is then
exported to Pakistan to its distributor that is Agility so basically all
intermediaries are strictly liable to share there forecast and actual
demand.

Supplier Capability of auditing:

Agility is the sole distributor in Pakistan of Gillette products so it has

a strict check and balance on the entire wholesaler and retailer store
where they supply.

Manufacturing flexibility:

The manufacturers of Gillette are manufacturing according to the

demand generated in Pakistan. They are always ready to manufacture
30% extra of the average demand needed.

Product Standardization:

P&G is well known for the standard of their product they are stuck to
the standard and don’t manufacture that is out of standard. ISO 9001
(ISO 9001 is the internationally recognised standard for the quality
management of businesses.) is followed by them.

Lead time:

It took 45 days for the consignment to reach Pakistan from Poland.

Delivery Speed:

P&G has chosen the best distributor service for its product Gillette
that is Agility.
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Product Innovation:

Gillette also has its own new product organization structure that has
contributed to its success. It has a program management system
under which all technical activity - R&D, engineering and
manufacturing - is consolidated by product category. Such a program
allows Gillette to a have a holistic approach to innovation in each
category. Although this program faced initial resistance from
employees, it eventually was well accepted.

The Old Supply Chain of Gillette:

Production Plant in Poland

The Gillette production plant manufacture 84% of the total products

required all over the world. Pakistan is getting all Gillette products
from Poland so the first step is the manufacturing of the product.

Consolidating DC
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After the manufacturing of the Gillette the products are sent to the
warehouse in Poland and then it waits for the dispatch when the
demand is arrived or according to order.
This warehouse has a limited space and manufacturing unit knows
how much amount should be made to send it to warehouse.

Jebal Ali (GAC)

Jebel Ali is a port town, located 35 kilometres southwest of the city

of Dubai in the United Arab Emirates (UAE). After the product stored
in warehouse the documentation process in done and the products
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are sent to dubai port Jebal Ali. From there the products are sent to
different middle eastern countries and to pakistan also.

Agility DC

The company demand is directly proportionate to customer demand

so as per required demand the consignment is shipped from Jebal Ali
to Port Bin Qasim at Agility. Agility is a publicly traded logistics
company headquartered in Kuwait, with more than 550 offices in 120
countries. It offers logistics, storage, and infrastructure services to
commercial businesses, government organizations, international
institutions, and relief agencies worldwide. The company specializes
in emerging markets and "challenging environments."
So agility then provide with the distribution services to all over the
Pakistan.

Conclusion for the old supply chain structure:

Basically the old supply chain has a long lead time and it took around
2 months to reach the products from poland to pakistan but it seems
easy way to port the products and the bulk quantity is shipped for the
whole middle eastern market but in paksitan the supply chain is
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modefied and they eliminate something by that lead time decresed to

45 days.
They were not using the just in time technique but in new they are
using this technique.

New Supply chain of Gillette

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PRODUCTION PLANT IN POLAND

WAREHOUSE AT POLAND

PORT BIN QASIM AGILITY DISTRIBUTOR

Conclusion of new supply chain structure:
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Pakistani distributor Agility suggested the importers to improve there

supply chain and directly import from poland ware house which
seems to be costly and much difficult but as for long term it was
analyzed that it is best way to import directly from poland that saves a
lot of time and money from both manufacturer and distributor. They
just eliminate the JABEL ALI port and the consignment is directly
sent to port Bin Qasim.
Jabel ali cost was reduced but first it was seemed like there will be no
difference but it proved to be cost saving as it doesn’t seems so.
So supply chain management eliminate the un efficient
intermediaries and make effective the existing intermediaries.

Improve Demand Planning

 Planning techniques reflected what Gillette wanted to sell and

not what they could sell
• Unhook financial performance from the demand plan
 Improved forecasting methods
• IT personnel sought full advantages of Manugistics
software already in place
• Trained planners on statistical modeling and tool usage
within the software
 Forecast collaboration: Used information from customers to
help forecast their needs
• Discussed discrepancies in customers and Gillette’s
forecast to better understand what was causing the
problems
• Gillette is now able to segment their demand forecasts
with more accuracy
Forecast Accuracy increased 46% to 71%!

Improve Supply Planning

 Manufacturing flexibility
• Increased run frequency of products
 Inventory planning: Historically inventory levels would be
based on planners’ past experience
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• Forecasting models used to achieve more accurate levels

• Tailoring customer requirements with use of JIT
deliveries and VMI(vendor managed inventory)
programs
Fill rates increased to 98%!