The document discusses innovation in supply chains at P&G. It provides an overview of P&G's business units and approach to innovation, which includes partnering with external organizations like universities, research institutes, and startups. The document outlines P&G's process for innovating with startups, which involves sponsoring business challenges, researching relevant startups, having startups pitch solutions, piloting solutions, and scaling successful solutions into the business. It also discusses some of the challenges and learnings around innovating with startups as a large company.

2. Innovation
in the business of supply
Supply Chain Insights Global Summit
September 2019 – Chicago, Illinois
Michael Miller, P&G Global Business Development

3. Aspiration
Serve the world’s
consumers better than
our best competitor in
every category and every
country where we choose
to compete—creating
winning shareholder
value in the process.
8/22/19 3

4. FAMILY CARE
P&G VENTURES
BEAUTY
BABY
FEMININE
CARE
HEALTH
CARE GROOMING
FABRIC
HOME CARE
SECTOR BUSINESS UNITS
FOCUS MARKETS / MARKET OPERATIONS ENTERPRISE MARKETS
GBS and CORPORATE RESOURCES

5. What is
Innovation?
Innovate (verb) make changes in something
established, especially by introducing new
methods, ideas, or products.

6. A Front Door for
Innovation
Strategic
Universities
National Lab
Programs
Industry
Partners
Innovation
Service Providers
Global Startup
Community

7. Partner with Research Institutes,
Customers Governments, Companies
and Academia
Deliver value from knowledge
Investment
Knowledge
Value
Research
Innovation
Create more knowledge
Partner with P&G Business Units,
Partners, Suppliers, Customers &
other Stakeholders

8. Wake up and
dare to see the reality
Stay in blissful
ignorance of illusion

9. Full (adjective) containing or holding as much or
as many as possible; having no empty space
Not A Full TruckA full truck
100% of weight limit Really?
Is this truck “Full”?
“vanity measures” “actionable metric”

10. To “Fill” a truck…
Information Process
Identify the right material
Schedule the right truck
At the right time
Knowing the right resources
Directing the move
Confirming the move
Filling the truck
Get and move the right material
To the right truck
At the right time
With the right resources
Moving the material
Confirming the move
Filling the truck
Physical Process

11. Sides of the same coin.
Creates value through outcome
Can be done with manual effort
Elimination or reduction of manual effort
offers additional value
Application of innovation
to accomplish the information process
with less manual effort
or improved outcomes
resulting in additional value
Automation Digitization
Physical Process Information Process
Creates value through outcome
Can be done with manual effort
Elimination or reduction of manual effort
offers additional value
Application of innovation
to accomplish the physical process
with less manual effort
or improved outcomes
resulting in additional value

12. Evolutionary Integration of Innovation
End to End
Integrated Work System
Waste elimination &
Standard work
High-Performance Work Systems (HPWS)
Total Quality
Process stability,
accuracy and
efficiency
Process Control
TPM & Six Sigma
Reliability Engineering
Supply Chain Initiatives
E2E Optimization
1969 1983 1986 1990 1996 2001 2003 2009 2010 2013
Toyota Benchmark
E2E Synchronization
2016 TODAY

13. Achieve and Maintain
>80% SITES PERFORM AT HIGHEST LEVELS
Progression 0 1 2 3 4
Safety
Total Injury Rate (TIR) Base <1.0 <0.50 <0.35 0
Quality
Scrap Reduction Base Improving 50% 90% 99%
Reliability
Unplanned Downtime
Breakdown Reduction
Unplanned MTBF
(stops/day/line)
Base
Base
Base
<12%
>50%
24
<8%
>90%
16
<6%
Improving
8
<2%
Improving
Unattended

14. One example - Innovating with Startups
Founder Sponsored Business Challenges
Value achieved has been close to immediate – low investment, high reward
Globally Relevant Startups Researched & Curated
Startups Pitched
Pilots Sponsored
Solutions Scaled into the Business
750+
~10%
~30%
~40%

15. Process - Innovating with Startups
Founder Sponsored Business Challenges
Globally Relevant Startups Researched & Curated
Startups Pitched
Pilots Sponsored
Solutions Scaled into the Business
Which have potential relevance to the challenge and at a
stage where engagement is practical
Listen for application, combination, derivation that could be
explored to accomplish challenge and create value
Application to challenge sufficient to prove outcome,
understand cost and effort to scale
Development of solution to challenge with application
across a business or enterprise

16. Time - Innovating with Startups
Founder Sponsored Business Challenges
Globally Relevant Startups Researched & Curated
Startups Pitched
Pilots Sponsored
Solutions Scaled into the Business
Development and translation of business challenge with
knowledge of when to stop 1-3 months
Depending on challenge(s) and number of Founders to
engage a 1 day to 1 week activity
Managing to proof without exhaustion (MVP), regulating
tolerance for governance, and work 3-6 months
Unique to solution space, organization and enlightenment
to past practices – move fast or someone else will

17. Learning - Innovating with Startups
Founder Sponsored Business Challenges
Globally Relevant Startups Researched & Curated
Startups Pitched
Pilots Sponsored
Solutions Scaled into the Business
Requires a network and skills that tend to be unique and
requiring constant vigilance and tending
Collaboration and translation between large co and startup
essential to identifying the potential
Managing the effort, relationship and governance to move
quickly not inherent in most large co
Scaling of the solution can often require scaling of the
startup with unique challenges

18. Distillation - Innovating with Startups
Asymmetry
Culture
Speed
Self Awareness
Patience
Partnership

19. What is your “what if”?