Consumer Goods Giants Tackle Automation and Rising Costs in Supply Chain
At the Barclays Global Consumer Staples Conference in September, top executives from Procter & Gamble (P&G), Colgate-Palmolive, and Kimberly-Clark discussed their supply chain priorities. P&G's Supply Chain 3.0 project is in 'full execution,' with maximum automation and digital capabilities in quality measurement and inventory management.
The initiative aims to drive productivity over the next five to ten years by capturing sensor and imaging data to replace manual quality testing, automating warehouses, and scaling efforts within the next 24 months.
Colgate-Palmolive may face rising oil prices affecting material costs in the fourth quarter's back end. The company might offset price increases through pricing and its premiumization strategy, aiming to grow sales, market share, and margins with higher-priced products.