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...
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