00-ProfessionalEnglish - P&G Case Study

Course :
PROFESSIONAL ENGLISH :
LOGISTICS MANAGEMENT
January, 2021
Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr -1-

-1-
Course outcomes
Knowledge
Learning of logistics management vocabulary.
Understanding of logistics words usage.
Skills
Translate from english to french (or french to english ).
Understand, write and present logistics business cases
using professional english.
Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Tel: 06 61 08 27 21 – Email: nextus.contact@menara.ma -2-
Use a case as a stimulus for learning
What do you READ TRANSLATE

know?
What do you
need to know?
What do you not
know?
DISCUSS SUMMARIZE

What can you remember ?
 20% of what we read

 30% of what we hear
 40% of what we see
 50% of what we say
 60% of what we do
 90% of what we read,
Flanagan 1997 hear, see, say and do.
What is Logistics ?
Processus permettant de planifier, mettre en

œuvre :
un flux et un stockage efficaces et efficients
LOGISTIQUE de matières premières, d’en-cours, de produits finis
et d’informations
du point d’origine au point de consommation
dans le but de se conformer aux exigences du client
The process of planning and executing the

cost-effective flow and storage of raw
LOGISTICS materials, in-process inventory, finished
goods, and related information from point
of origin to point of consumption to satisfy
customer requirements.
What is supply chain ?
Processus de coordination des flux

CHAINE
physiques, d’informations et
LOGISTIQUE financiers à la fois à l’intérieur d’une
entreprise, et entre les entreprises
formant la chaîne de valeur.
The process of coordinating material,

SUPPLY information and financial flows
CHAIN within every company and between
partners in a value chain.
Supply chain advantage
quality time
Supply Chain
advantage
cost

P&G’s case study: ADDING VALUE WITH THE SUPPLY CHAIN
A- As the manager in charge of the world’s largest

supply chain, Mr. Keith Harrison believes the time has
come to give the business of logistics more credit. The
head of global product supply at Procter & Gamble
(P&G) believes the search for a competitive edge will
focus more on supply-chain efficiency as retailers and
suppliers battle huge increases in raw material and
energy costs. “Today you have road congestion, you
have freight costs, driver shortages, capacity issues.
Working capital is at a premium. Competition among
retailers and vendors is higher. All of this is putting
pressure on having a more efficient supply chain. This is
more critical than it has been before.”
B- Since his appointment in 2001, Mr. Harrison has

been at the forefront of efforts to drive costs from P&G’s
supply chain helping the company meet its long term
sales and earnings growth targets, in spite of surging
input costs. But he says P&G has also been looking
increasingly over the past 3 years at ways to turn
improvements in the supply chain into top-line sales
growth. “We are trying to make the supply-chain an
engine growth for the company”, he says. “A lot of the
time, supply chain management is reactive, passive or
cost control. But we think there’s an opportunity for us
also to use the supply chain to create top-line growth as
well as bottom-line performance.”
C- An effective supply chain helps manufacturers by

reducing a retailer’s “out-of-stocks”. Which in turn
prevents lost sales. Those sales also benefit the
retailer, while efficient delivery of products to meet
demand can also reduce the costs of holding
inventory to the retailer.

Tel: 06 61 08 27 21 – Email: nextus.contact@menara.ma - 10 -
D- P&G is telling retailers that it should be rewarded

for the benefits its supply chain delivers.
“If I do something with my supply chain to reduce

my customer’s inventories, I want more than just the
supplier of the year award,” He says.
“How do we get that value that we’ve created, at

least partially reinvested in growing our business ?
Do we get sharper pricing, better visibility, more
display, better shelving ? ”

E- As an example of the potential benefits, Mr.

Harrison gives the example of a pilot project with
Wal-Mart in the US, whose worldwide stores
account for 15% of P&G’s overall sales.
The two established a cooperative relationship in the

late 1980s, starting with Wal-Mart’s decision to allow
P&G and others suppliers access to the customer
sales data collected by its “Retail Link” computer
system.

F- Over the past 12 months, a P&G factory in Missouri

has been using live sales data from stores not to
forecast demand but to schedule replenishment
deliveries on store-by-store basis for a single test
product. Rather than shipping the required volume to a
distribution center, where it is then divided up for each
store, the shipments are instead prepared at the factory
for the right store. When the goods arrive at the Wal-
Mart distribution center, they are moved directly from
P&G’s truck to the appropriate Wal-Mart truck with no
time in storage.
“It is assembled for a store and it is just flowing through
the system.” says Mr. Harrison.
G- Kevin o’Marah, a logistics consultant at “AMR

Research”, believes P&G is the first consumer
goods company to use the “Retail Link” data in this
way.
THE END

Choose the best explanation for each phrase from the article :
1- Capacity issues :
A-Problems about the company’s expertise.
B-Problems about production volumes.
2- Input costs :
A-Costs of materials purchased by a company.
B-Costs of manpower employed by a company.
3- Top-line sales growth :
A-Increased sales turnover.
B-Better sales of the most profitable products.
4- A growth engine for the company :
A-Something that will make the company bigger.
B-Something that will help the company increase sales.
5- Bottom-line performance :
A-Better sales of poor performing products.
B-Better profitability.
6- Sharper pricing :
A-More competitive prices.
B-More risky prices.
Use the words or phrases in the table to complete the sentences:
cost control growth targets replenishment deliveries sales data working capital
freight costs inventory road congestion vendors
1- To cut costs, it is important for retailers to keep their ….. levels
as low as possible.
2- If retailers carry too much stock, they will use a lot of their …..
3- A more cost-effective way to operate is to schedule ….. on
just-in-time basis.
4- If suppliers have live access to a customer’s ….., they can
prepare deliveries for each store.
5- Suppliers are also known as …..
6- Delivering goods by truck now takes longer in many countries
due to increased …...
7- With rising oil prices, ….. are also going up.
8- A traditional aim of supply chain managers is ….. and keeping
costs down.
9- P&G is using its Lecturer:
supply chain to meet sales …..
Mr. Omar TALEB - Email: talebforum@yahoo.fr
Describe a process from the article :
Rather than shipping the required volume to a

distribution center, where it ….. then ….. up for each
store, the shipments ….. instead ….. at the factory for
the right store. When the goods arrive at the Wal-Mart
distribution center, they ….. ….. directly from P&G’s
truck to the appropriate Wal-Mart truck with no time in
storage. It ….. ….. for a store and it is just flowing
through the system.

Find words or phrases in the article which fit these meanings :
1- Something that gives a company an advantage over others.

2- Fight against.
3- Extremely valuable and rare, which a lot of people want.
4- In the leading position.
5- Rapidly increasing (surging).
6- The way goods are arranged in a store so they are easily seen
by customers.
7- A test done on a small scale to see how something works.
8- Information about sales, which is current or in real time.
9- Replacement of what has been used or sold.
10- Put together in a certain way.

Read the article and answer these questions :
1- What is Keith Harrison’s job, and when did he start it ?

2- How big is P&G’s supply chain ?
3- What pressure are retailers and suppliers under ?
4-What is one thing that P&G is trying to do with its supply chain?
5- What else is P&G trying to do with its supply chain ?
6- How does supply chain management usually operate in a
company ?
7- How can a supplier’s effective supply chain help retailers ?
8- What does P&G want from its customers if it improves its
supply chain performance and reduces their out-of-stocks and
inventory levels ?
9- How important a customer is Wal-Mart for P&G ?
10- What kind of cooperation do Wal-Mart and P&G have ?
11- Is P&G the only company to have access to Retail Link data ?
12- What is special about
Lecturer: Mr.P&G’s
Omar TALEBMissouri factory ?
- Email: talebforum@yahoo.fr
Choose the statement that expresses the ideas

in the article most accurately :
1- Suppliers need to reduce their supply chain

costs because of increased transport costs.
2- By reducing supply chain costs, P&G is

achieving higher profits.
3- P&G is using its supply chain to increase

sales growth.
Discuss these questions :
1- In what ways do you think a company

producing consumer products can use its
supply chain to increase sales growth ?
2- What are the benefits to retailers if their

suppliers have efficient supply chain ?
3- How can deliveries to the distribution center

of a retailer be made more efficient ?
Imagine you are the supply chain manager at a

consumer goods manufacturer like P&G :
Hold a meeting with your customer, a large

supermarket chain, and argue for things such as
sharper pricing and better display of your products in
return for reducing the customer’s costs of holding
inventory levels because of efficiency of your supply
chain.

Imagine you are the supply chain manager at a

consumer goods manufacturer like P&G :
Give a presentation to the board of your company to

explain how using your key customer’s live sales data
can help reduce its inventory levels and at the same
time increase sales of your company’s products.

Produce and present an audit report about P&G

supply chain :
Suppose that Mr Harrisson ordered an internal audit

about P&G Supply chain.
As an audit manager, write a high level audit report to

outline findings and key recommendations to improve
P&G supply chain by highlighting the benefits of the
partnership with P&G’s key customer Wal-Mart.

LA VALEUR AJOUTEE PAR LA CHAINE LOGISTIQUE
A- En tant que Responsable de la plus grande chaîne

logistique au monde, Keith Harrison de la société P&G croit
qu’il est temps de valoriser la fonction logistique. Il estime
que la recherche d'un avantage concurrentiel passera
inévitablement par une chaîne logistique efficiente car les
détaillants et leurs fournisseurs font face à d’énormes
augmentations des coûts des matières premières et de
l’énergie. Aujourd’hui, les entreprises souffrent de la
congestion des routes, des coûts de transport, de la pénurie
des conducteurs, des problèmes de capacité, du coût
exorbitant du besoin en fond de roulement et des relations
extrêmement conflictuelles entre les détaillants et les
fournisseurs. Tous ces facteurs mettent la pression pour
avoir d’urgence une chaîne logistique plus efficiente.
B- Depuis sa nomination en 2001, Mr Harrison a piloté des

programmes de réduction des coûts logistiques en vue d’aider
P&G à atteindre ses objectifs, à long terme, en termes de
croissance des ventes et de profitabilité malgré la flambée des
coûts des intrants. Cependant, P&G a également recherché
durant les trois dernières années comment transformer les
améliorations réalisées dans la chaîne logistique, en un levier de
croissance du chiffre d'affaire.
Il déclare qu’ils essaient de rendre la supply chain un moteur de
croissance pour l’entreprise, que dans la plupart du temps la
gestion d’une chaîne logistique est réactive, passive et orientée
vers le contrôle des coûts, et pense que la gestion de la chaîne
logistique chez P&G présente également des opportunités pour
apporter à la fois la croissance du chiffre d’affaires et
l’amélioration de la rentabilité.
C- Une chaîne logistique efficace aide les fabricants

à réduire les ruptures de stock chez les détaillants.
Ce qui évite la perte des ventes à la fois pour les
fabricants et les détaillants alors que l’optimisation
des livraisons pour répondre à la demande peut
également réduire les coûts de possession des
stocks des détaillants .

D- La société P&G n’hésite pas de demander à ses

détaillants de la rémunérer pour les bénéfices générés
grâce à une meilleure gestion de la chaîne logistique de la
part de P&G.
Mr. Harrisson dit : « Si je fais quelque chose avec ma
chaîne logistique pour réduire les stocks de mon client, je
veux recevoir, en contrepartie, quelque chose de plus que
le titre du ‘fournisseur de l'année’. Comment pouvons-nous
obtenir cette valeur que nous avons créée, au moins
partiellement, pour la réinvestir dans la croissance de nos
affaires ? Nos clients positionnent-ils nos produits avec des
prix plus compétitifs, une meilleure visibilité, plus d’espaces,
et les meilleurs emplacements de rayons ? »
E- Pour illustrer les bénéfices potentiels de la chaîne

logistique, Mr. Harrison donne l'exemple d’un projet
pilote avec le détaillant américain Wal-Mart. Les
points de vente de ce dernier, partout au monde,
représentent 15 pour cent des ventes totales de
P&G. Les deux entreprises ont scellé une relation de
partenariat vers la fin des années 80 se manifestant
par la décision de Wal-Mart à autoriser P&G et
d'autres fournisseurs d'accéder aux données des
sorties de caisses collectées par son système
informatique appelé « Retail Link ».

F- Au cours des 12 derniers mois, une usine de P&G située

dans l'état de Missouri a utilisé les données des sorties de
caisses de Wal-Mart collectées en temps réel, non pas pour
prévoir la demande des points de vente Wal-Mart, mais pour
programmer le réapprovisionnement de chaque point de vente
pour un produit test. A la place d’expédier les volumes à un
centre de distribution à partir duquel les livraisons seront
réparties par point de vente, P&G prépare la marchandise pour
le bon point de vente au niveau de l’usine. Lorsque les
marchandises arrivent au centre de distribution Wal-Mart, elles
seront transférées directement, sans perte du temps, du
véhicule de P&G vers celui de Wal-Mart qui va les acheminer
vers le point de vente approprié. Mr Harrisson déclare que les
produits sont déjà préparés pour le bon point de vente et ne font
que transiter par le système de distribution Wal-Mart.
G- Kevin O'Mara, un consultant en logistique chez

"AMR Research", estime que P&G est la première
entreprise des produits de grande consommation à
utiliser le système « Retail Link » de cette manière.
FIN


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Course :

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr -1-

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

What do you READ TRANSLATE

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

 20% of what we read

Processus permettant de planifier, mettre en

The process of planning and executing the

Processus de coordination des flux

The process of coordinating material,

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

A- As the manager in charge of the world’s largest

B- Since his appointment in 2001, Mr. Harrison has

C- An effective supply chain helps manufacturers by

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

D- P&G is telling retailers that it should be rewarded

“If I do something with my supply chain to reduce

“How do we get that value that we’ve created, at

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

E- As an example of the potential benefits, Mr.

The two established a cooperative relationship in the

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

F- Over the past 12 months, a P&G factory in Missouri

G- Kevin o’Marah, a logistics consultant at “AMR

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Describe a process from the article :

Rather than shipping the required volume to a

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Find words or phrases in the article which fit these meanings :

1- Something that gives a company an advantage over others.

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Read the article and answer these questions :

1- What is Keith Harrison’s job, and when did he start it ?

Choose the statement that expresses the ideas

1- Suppliers need to reduce their supply chain

2- By reducing supply chain costs, P&G is

3- P&G is using its supply chain to increase

Discuss these questions :

1- In what ways do you think a company

2- What are the benefits to retailers if their

3- How can deliveries to the distribution center

Imagine you are the supply chain manager at a

Hold a meeting with your customer, a large

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Imagine you are the supply chain manager at a

Give a presentation to the board of your company to

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

Produce and present an audit report about P&G

Suppose that Mr Harrisson ordered an internal audit

As an audit manager, write a high level audit report to

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

A- En tant que Responsable de la plus grande chaîne

B- Depuis sa nomination en 2001, Mr Harrison a piloté des

C- Une chaîne logistique efficace aide les fabricants

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

D- La société P&G n’hésite pas de demander à ses

E- Pour illustrer les bénéfices potentiels de la chaîne

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

F- Au cours des 12 derniers mois, une usine de P&G située

G- Kevin O'Mara, un consultant en logistique chez

Lecturer: Mr. Omar TALEB - Email: talebforum@yahoo.fr

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