Proctor & Gamble Sustainable Business Research Paper

The strategy P&G deliberately took was to bring greater sustainability into their supplier management processes to the product and process level while also concentrating on cost reduction and supplier efficiency. This strategy paid off very well in European markets where sustainability standards and requirements are exceptionally high and more stringent compared to the United States (Neto, Walther, Bloemhof, van Nunen, Spengler, 2010). When these benefits are taken over the long-term, they being to also influence product development and lead to even more aggressive goals being set and achieved. P&G has specifically focused on using its supply chain to fuel the development of Sustainable Innovation Products (SIP). Figure 2 from the latest Sustainability Report shows how successful this strategy continues to be for nurturing new innovation.

Figure 2: Sustainable Innovation Products Developed From Supply Chain Initiatives

Conclusion

P&G's focus on the sustainable supply chain has given them the ability to not only better manage logistics, reverse logistics for packaging cost savings, and fuel consumption, it has also allowed the company to reap the benefits of more energy-efficient operations. The company's continual growth in the area of Sustainable Innovation Products (SIP) is also exceptional in that the advances made in packaging, composition of products, and the cost structures to enable a sustainable supply chain are all working towards greater profitability as well

(Wolf, Seuring, 2010).Finally all the efforts to create a more scalable and effective supply chain have also led to the company being more competitive from a global compliance perspective as well (Neto, Walther, Bloemhof, van Nunen, Spengler, 2010).

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