Serving Scotland:

Supply Chain Operations in a European market

Frank ArendtGlasgow, September 2012

P&G Global in Brief2

Number of brands 300

Countries with P&G Site 80

Number of employees 127,000

Net Sales $80 billions

Manufacturing Sites 140

Warehouses 300

(rounded numbers)

3

(rounded numbers)

3

Storage Locations for FP 50

Customization Centers >60

km / Year >250m

Liters Diesel / Year >70m

P&G Logistics in Western Europe

4

50 Leadership Brands

P&G Volume to Scotland

Main Sources:•England – 85%•France – 11%•Belgium – 4%

P&G average journey from UK source site >400km50+ trade lanes, 1 rail enabled

Mode usedRoad 93% Rail 7% 150t CO2 avoided

P&G Target 30% road km avoidance

Transport In Scotland

• Road still dominates• Net importer of goods, imbalance of flows

– Approx. 25% km travelled empty

• Volumes– Retail increasing– Manufacturing reducing

P&G SustainabilityEngaged with ECR and Heriot Watt University

Starfish Initiative

Collaborative Concepts Co-modality CO3

P&G Transport In Scotland• Collaborating

– With major retailers– Packaging suppliers– It’s not easy….but

worthwhile• Challenges

– Volume volatility• Matching flows days of

week and times of day– Rail

• Requires wider on time arrival tolerances

• Opportunities– Extended Trailers

• Reduce trucks to Scotland• Requires round trip

• Next Steps– Maintain dialogue– Combine flows for

improved network design