Martin Herrington, Associate Director - Logistics Purchases, Procter & Gamble speak in a session on how 3PLs can better satisfy their customers, 'Maximising Customer Service Levels', at the 7th European 3PL Summit in Brussels, November 25th 2009. To download all of the slides from the conference for free visit www.3PLsummit.com/eu_2009ppts

1. Meeting OUR customers’ needs
Martin Herrington
Associate Director, Logistics Purchases
Procter & Gamble, Western Europe

2. • P&G – who are we?
• Who are our customers?
• What do they need?
• How can the 3PL industry help us meet
our customers’ needs?

3. Who are we?
William Procter
Candle Maker
James Gamble
Soap Maker

4. What is our purpose?
“We provide
branded products
and services of
superior quality
and value that
improve the lives of William Procter
the world's Candle Maker
consumers, now
and for generations James Gamble
Soap Maker
to come.”

5. Procter & Gamble today
Sales $83.5 Billion
# Brands ~300
# Billion-$ brands 24
# of employees: 138,000 in 80 countries
Consumers Approx 4 billion

6. That’s a lot of logistics
• 2 Million truckload
shipments a year
• 3 Million miles of over-
the-road shipments a
day
• Worldwide shipments
across 3,600 sea
freight lanes

7. Intense Competition…
Auchan Wal-
Wal-Mart
Tesco
2
Costco
Sainsbury
Nestle SCA 1.5
SC
Hayat Johnson
Hengan
Unicharm
Pepsico 1
Carrefour
K- C Henkel
Edeka Kao
Kraft TZMO Baby/ Diaopai
Family0.5
Clorox
S&C Corona Reckitt
Phillips
F&HC Nirma
Rayovac Gillette P&G 1 1.5 2
-2 -1.5 -1 -0.5 0.5
Energizer Unilever Metro
BJ’s Health
GSK Beauty
L'Oreal Alicorp
Colgate
Pfizer Savital Estee
-1
Lauder
J&J Shisheido
Avon Walgreens
Safeway Wyeth -1.5
Beiersdorf
Merck
-2
Kmart
Global Manufacturers
Albertsons
Local/Low Cost Manufacturers Ahold
Kroger
Retailers

9. How do we make
logistics a
competitive
advantage?
(Something our
customers will buy?)

10. The First Moment of Truth
“Thirty million times a day,
P&G products face their
first moment of truth
when consumers stand
in front of a store shelf,
and decide whether to
buy a P&G brand or a
competing product”.
AG Lafley, 2002

11. If the product isn’t on the shelf….
…it is of no value…
…to us
…to the retailer
…to the consumer

12. What do our customers want from us?
• On Time In Full
• Lower inventory
• Promotions
• Increasing customisation
• Sustainability

13. How can the 3PL industry help?
TELL US WHAT
YOU ARE BEST AT

14. How can the 3PL industry help?
ACT AS ONE COMPANY

15. How can the 3PL industry help?
SEND US THE TEAM

16. How can the 3PL industry help?
TELL US SOMETHING
WE DON’T ALREADY
KNOW

17. External collaboration plays a key role in nearly 50
per cent of P&G’s products. We’ve collaborated
with outside partners for generations but the
importance of these alliances has never been
greater.
We want P&G to be known as the company that
collaborates better than any other company in the
world.
Chairman of the Board and
Chief Executive Officer

18. Thank you for listening
Martin Herrington
Associate Director, Logistics Purchases