Palmolive

SAP Case Study mySAP™ Supply Chain
Management

mySAP™ SCM
AT COLGATE-PALMOLIVE
COLLABORATIVE PLANNING FUELS GLOBAL GROWTH

mySAP SCM
AT COLGATE-PALMOLIVE
AT A GLANCE
Strategic Goals
Enhance the competitive position of Colgate’s consumer products business by continually improving margins, enhancing service to the retail trade and internal customers, improving responsiveness to promotions, and enabling a transformation to globally standard operations.
Approach
Focus initially on employing the supply network planning (SNP) capabilities in SAP® Advanced Planner and Optimizer (SAP®
APO) for replenishment optimization. Employ demand planning
(DP) and the collaborative engine in SAP APO for determining demand. Ultimately, make use of a broad range of SAP APO functions to enable Internet-based collaborative planning with internal and external partners. Enhance and extend the initial
SAP APO implementation by embracing the solution across global brands and incorporating emerging functions in production planning and detailed scheduling (PP/DS) and other areas of SAP APO.
Results:
These achievements in North America-based implementations have set the stage for the global rollout:
• Achieved performance gains with SAP APO beyond what had already been achieved with SAP® R/3®
• Improved on-time and complete orders from 70% to 98% for vendor-managed inventory (VMI) replenishment, and improved customer order fulfillment to 95%
• Reduced cycle times from 5 days to 1 day for VMI replenishment and from 62 days to 33 days for cross-border sourcing • Deployed collaborative planning to reduce forecast error from 62% to 22%, reduce inventory by 22%, contribute to improvements in cycle times and customer service, and benefit even further from the global sourcing model
• Provided a foundation for e-business developments, enabling
Colgate to maintain even better relationships with its partners and customers

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SUMMARY

Colgate-Palmolive Company is a U.S. $9.4 billion global consumer