MANAGING BUSINESS PROCESS OUTSOURCINGOf P&G and NESTLE

Submitted by:-

Garima Kumari B-27

Shweta Kalra B-35

CORE COMPETENCIES

CONSUMER UNDERSTANDING

INNOVATION

BRAND BUILDING

GO TO MARKET CAPABILITIES

SCALE

INNOVATION

“The answer to the challenges we face is always the same. The answer is innovation” Bruce Brown- Chief Technology Officer

P & G has 55000 active patent filings globally  and 41000 granted patents globally Innovative culture  supports customer centric approach

Human resource involves mid career people from the industry

How we built a world class organic growth engine by investing in people (By A.G Lafley with an introduction by Ram Charan)

26 R & D centres and 8000 employees 

Crest whitestrips and electronic cigrattes in Japan

INNOVATION 1879:IVORY-The first white soap equal in quality to imported castiles 1901:GILLETTE RAZOR-Worlds first disposable safety razor 1911:CRISCO-The first all vegetable shortening 1933:DREFT-The first synthetic household detergent 1934:DRENE-The first detergent shampoo 1946:TIDE-The first heavy duty laundry detergent 1955:CREST-The first toothpaste to prevent tooth decay 1956:COMET-Scouring cleanser 1960:DOWNY-Rinse add fabric softener 1961:HEAD AND SHOULDERS-Anti dandruff shampoo PAMPERS-The first affordable disposable diaper 1967:ARIEL-The first laundry detergent with enzymes

1968:PRINGLES-The first fresh, unbroken potato snack

1972:BOUNCE-The first dryeradded fabric softener

1973:DAWN-Grease cutting dishwasher liquid

1978:DIDRONEL-Drug breakthrough for osteoporosis 

1983:ALWAYS-The first female protection with dry weave topsheet

1985:CREST TARTAR CONTROL-Dentifrice to prevent tartar accumulation

1986:PERT PLUS-The first 2 in 1 shampoo and conditioner

1987:ULTRA PAMPERS-Diapers reduced to thickness

1988:TIDE WITH BLEACH-The first detergent with activated bleach

1990:SPIC & SPAN LIQUID-The first recycled packaging

1996:OLEAN-The first calorie free ingredient

1998:FEBREZE-Fabric cleanser

2000:ACTONEL-FDA approved for treatment of osteoporosis

2001:ARIEL LIQUITABS-The first liquid laundry detergent pouches

2002:ORAL TOTAL EFFECTS-Anti aging facial cream

2003:OLAY REGENERIST-Anti aging skin care 

2004:PAMPERS-BABY STAGES OF DEVELOPMENT

2005:MR CLEAN AUTODRY-Car care system

2006:GILLETTE FUSION-Razor

2007:PULSONIC-Self cleaning electric razor

2008:BOUNCE  DRYER BAR-Attached to dryer and freshes clothes automatically

2009:TIDE STAIN RELEASE-In wash booster

2010:DURACELL MYGRID-Changes multiple devices

2011:OLAY HAIR REMOVAL DUO

2012:FEBREZE CAR VENT CLIP and GILLETTE FUSION PROGLIDE STYLER

GO TO MARKET CAPABILITIES

P & G spends approximately $ 2 million  each year to minorities and women suppliers

Excellence award for internal suppliers was received by Shell Chemicals Ltd., Rockwell Automation Inc. and Pratt Industries Inc.

P&G recognized its top-performing minority and women-owned suppliers,  which include Hooven Dayton Corp., Integrated Packaging Corp., Resource Interactive and Starcom Worldwide.

Distinguished Supplier Diversity Award from the U.S. Department of Commerce’s Minority Business Development Agency (MBDA)

CONSUMER UNDERSTANDING

Independent in house market research groups involved in advertising research and market research

Qualitative tools used include focus group discussions, in house visits, in context visits and in store interviews

Quantitative tools involve interaction between researcher and respondents

Online concept test to get feedback from consumers

Spend more than $ 350 million in customer understanding

BRAND BUILDING

Twenty-six of P&G's brands have more than a billion dollars in net annual sales, according to the 2011 Annual Report and P&G Corporate Newsroom

In August 2014, P&G announced it was streamlining the company, dropping around 100 brands and concentrating on the remaining 80 brands, which were producing 95 percent of the company's profits

P&G had developed a revolutionary new technology, Tide advertising promised consumers to wash "cleaner than soap," with "oceans of suds."

SCALE

Diversity of business portfolio

Science and technology portfolio

Geographic reach

MATRIX

OUTSOURCING PARTNERS

JONES LANG LASALLE

IBM

HP

OUTSOURCING MODEL

Global Shared Service Model-

Service centers were set up in Costa Rica, Manila, and Newcastle, and work was spread across these centers.

Shared Service Centers offer organizations the opportunity to eliminate redundant activities and realize efficiencies in service delivery.

Most of the savings with the Shared Services model come from standardizing processes, making it easier to provide support for multiple business units, while improving the speed and quality of service.

The three Shared Service centers marked the first stage of a journey for P&G in the development of a best-in-class service management organization.

In the next phase (2002-2003), GBS started an initiative to examine the possibility of transferring some of the work that was being done by the Shared Services organization to third party relationships.

P&G had gained some experience with third party providers by taking small projects to offshore locations on a limited basis

CORE COMPETENCIES Innovation and Renovation –

Fermentation and probiotics:

Molecular interaction of probiotics with intestinal cells

Sequenced several probiotic genomes for better understaning of their characteristics and mechanisms of action.

Extrusion:

Strong expertise in hot extrusion (eg infant and breakfast cereals),

Co-extrusion (eg filled bars and snacks)

Cold extrusion (eg ice-cream and chocolate).

Healthier fats:

Natural vegetable oils instead of partially hydrogenated fats in our Maggi bouillon cubes and seasonings.

Foam booster technology:

The creamy head for Nescafé Cappuccino, with less fat

It is much denser and longer-lasting than regular foam

In 2002 relaunch of Nescafé Cappuccino with new foaming mix products

Malt extraction:

Development of a new process for malt extraction

Less sucrose and more complex carbohydrates in the product

Portion dispensing systems:

This know-how is essential for the beverage systems.

Quality Assurance and product safety-

•An Early Warning Network, which identifies and helps prevent potential safety issues

•A Microbiological Safety Network that provides fast and reliable microbiology safety assessments

•An Analytical Methods Network to develop and improve analytical standards

•A Global Analytical Laboratories Network. Nestlé has 29 regional testing labs that provide analytical data and Quality Assurance support to operations

Methods that used in factories include Titration,ELISA, and HPLC

.

Operational efficiency-

Elimination of wastage, enhanced effectiveness, amplified efficiency

An improvement in all the operational facets, which is an improvement upon the current core competency

Ushering in innovative products via the innovative path is the aim.

Wherever, whenever, however –

Products reach the customers whenever, however and wherever they might need these

Supply chain to be the best in the industry, in order to ensure that the freshest raw materials create the best products and they reach the customers in the fastest possible time .

Customer Communication –

Establish a two-way communication channel, so that customer feedback and product experience can be used to develop the new and innovative products.

MATRIX

Non-Core Critical

•Innovation•Quality assurance•Consumer communication

Core Critical

•Sales•Supply chain management

Non-core Non-critical

•Environment sustainability•Manufacturing and distribution

Core Non-critical

•Marketing

NESTLE OUTSOURCING PARTNERS

•IBM

•ABAP

•BASIS WORK

•CHEP

•IMPACT HUMAN RESOURCE

•NASHTECH

OUTSOURCING MODEL

GLOBAL SHARED SERVICE MODEL

Nestle uses offshore model

Nestle Business Services, Philippines

Manages financial services and employee service requirements

Manages zonal area which includes Philippines, Malaysia/Singapore, Indonesia, Indochina, Australia and New Zealand

THANK YOU