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SAPPHIRENOW – How Colgate boost market responsiveness and profitability with Integrated Business Planning

Today at Sapphire, I listened in on a great session from Mark Vollrath, the Worldwide Director for Colgate-Palmolive’s Global Supply Chain,  responsible for strategy and systems.

Mark started by providing a brief history of the company, explaining that Colgate-Palmolive originated in the US in 1806 and are now $17+ Billion in global sales. Colgate employ 35,000+ people worldwide, operations in over 80 countries and sell products across 4 four categories in 223 countries.  Colgate are famous for brands such as Colgate, Palmolive, Sanex, Ajax and Hill’s.

Mark then focused on the companies supply chain and provided some very illuminating facts about the Colgate supply chain over the past 5 years:

  • Provided over $4B in savings
  • ROA consistently far exceeds peer group
  • Strategically consolidated network by 25%
  • Invested in people capabilities and technology
  • Increased Gartner Top 25 ranking year over year

To enable the global supply chain strategy Colgate have collaborated with SAP and are leverage a broad SAP footprint:


Colgate supply chain business needs

Col2.JPGMark explained that when “Colgate think about planning, they see the S&OP process at the center. It is the intersection of Supply, demand and integrated business planning.”

At Colgate, S&OP and Integrated Business Planning help improve planning and operational visibility, reduce information latency and smooth out the “bullwhip effect” of variable demand signals.

Mark described the 6 work streams that are running in parallel for control tower, S&OP, demand sensing, inventory planning and supply planning. He explained that “all of these processes are interdependent, and complement each other”. He also pointed out the importance of integration to APO which also compliments the IBP solutions.

Benefits of Integrated Business Planning

Mark discussed how “deploying Integrated Business Planning processes have driven “near real-time what-if simulation with end-to-end visibility”. This in turn has enabled a more predictable end to end demand signal for responsiveness, resulting in:

  • Increased Service Levels
  • Reduced Inventory
  • Providing Growth Contributions
  • Uncovering New Savings Opportunities

This was a great overview of Colgate’s continued deployment and roll out of SAP’s Integrated Business Planning suite.  Thanks to Mark and the Colgate team for taking part in SAPPHIRENOW.

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