Friday, June 27, 2008

Proctor & Gamble Considers...

...making major changes to its distribution network. Why? Increasing energy costs:
Mr Harrison, responsible for the supply chain behind P&G’s global sales of more than $80bn, said the supply system was currently based on “large, single-category regional production sites with long supply chains”.

“Up to where oil was $70 or so, it was hard to justify building new capacity only on the back of new distribution costs. With oil at $140, the world has changed.”
Same song, different company. Expect to read this type article numerous times in the near future.