Proctor and Gamble 2013 Annual Report Download - page 5

We’re making significant progress. By the end of fiscal 2013,
we reduced non-manufacturing enrollment by 7,000 roles,
which is 1,300 role reductions ahead of our initial target.
We delivered over $1.2 billion in cost-of-goods-sold savings
and we improved manufacturing productivity by 7%, both
ahead of target. Still, we have significant opportunities to
continue improving productivity in all facets of the business.
We will deliver the productivity improvements we promised
on or ahead of schedule
— but that is not an endpoint for
productivity improvement at P&G. It’s a milestone. We know
we can do more. We are making productivity systemic,
notepisodic.
We’re already mobilized to address the next round of
productivity initiatives, which we are working in parallel, not
sequentially. They cover a full range of cost and cash
opportunities. The projects are being led by business unit
and function leaders. Some are yielding savings already and
others will take a few years to fully implement.
We’re making
strategic investments
in innovation
and go-to-market
capabilities.
We are significantly
strengthening
productivity and
cost savings efforts.
In developing markets, we have opportunities to locate supply
chains closer to the customers and consumers we serve.
This will enable us to reduce costs and serve customers faster.
In developed markets, we are studying options that would
reduce the number of facilities, build scale across categories,
and reduce costs and inventory
— all while improving customer
service. This will require investment, but should generate very
attractive returns.
We’ll improve marketing return on investment, driven by a better
mix of media, greater message clarity, and greater efficiency in
non-advertising marketing spending.
Productivity will become one of P&G’s core strengths
— like brand
building and innovation, for example — to deliver value creation
and growth.
P&G Is Improving Execution
Our third focus area is to step-change operating discipline.
We simply have to execute better, more consistently and more
reliably than our competitors. We know this is necessary to
win with consumers and customers day in and day out
—
which is a requirement for delivering leadership returns in our
Pantene Expert Collection Age Defy
Advanced Thickening Treatment
launched in North America in January 2013
at a premium price and is already the #1
treatment in the Salon Inspired segment of
the Hair Care category
— and one of the
top 10 products in the Pantene lineup.
Vidal Sassoon Pro Series launched in
the U.S. in January 2013
— offering
consumers “salon genius, brilliantly priced.”
It is performing ahead of expectations
in sales and share.
Cover Girl Outlast Stay Brilliant
Nail Gloss has 45 shades providing high-
gloss color that lasts as long as a week
with no top coat. It was the biggest Nails
launch in the U.S. industry this past year.
The Procter & Gamble Company 3