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MINI REPORT
ON
SUPPLY CHAIN OF
GROUP MEMBERS
Wardah Mujeeb (5149)
Mahvash Waqar (4602)
Ali Yousuf (4675)
Ammar Jaffer (4683)
Taha Millwala (4685)
Section: - Sunday (3:00 to 6:00 pm)
Course: - Supply Chain Management
Instructor: - Mr. Tabish
2

Date of Submission: - 7th
March, 2010.
TABLE OF CONTENTS
 Background and Vision statement Page 3
 Products Page 4
 Values Page 4
 Mission of Supply Chain Page 6
 Procurement Policies Page 6
 MANUFACTURING Page 8
 DISTRIBUTION Page 9
 Information Page 10
 Functions of SAP Software Page 11
 Advantages of SAP Software Page 11
 Ware Housing Page 12
 Appendix Page 13
3

BACKGROUND:
In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and
candle factory on Dutch Street in New York City under the name of "William Colgate &
Company". In the 1840s, the firm began selling individual cakes of soap in uniform
weights. In 1857, William Colgate died and the company was reorganized as "Colgate &
Company" under the management of Samuel Colgate, his son. In 1872, Colgate
introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first
toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a
tube, Colgate Ribbon Dental Cream, in 1896. By 1908 they initiated mass selling of
toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee of
Colgate University (formerly Madison University).
In Milwaukee, Wisconsin, the "B.J. Johnson Company" was making a soap entirely of
palm and olive oil, the formula of which was developed by B.J. Johnson in 1898. The
soap was popular enough to rename their company after it - "Palmolive". At the turn of
the century Palmolive, which contained both palm and olive oils, was the world's best-
selling soap, and extensive advertising included The Palmolive Hour, a weekly radio
concert program which began in 1927. A Kansas-based soap manufacturer known as the
"Peet Brothers" merged with Palmolive to become Palmolive-Peet. In 1928, Palmolive-
Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company. In
1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the
current name.
VISSION STATEMENT:
Our three fundamental values—Caring, Global Teamwork and Continuous
Improvement—are part of everything we do.
4

VALUES
Colgate-Palmolive’s values are following
 Explore the initiatives
 Processes and policies that help continue to strengthen Colgate-
Palmolive and the communities where they work and live.
 Provide safe and quality products of value to consumers
 Increase shareholder value
 Offer opportunities for personal and professional growth to all
Colgate people
 Fulfill corporate social responsibilities as a member of the global
community
PRODUCTS
1:- ORAL CARE
 Tooth Pastes
 Sparkle
 Tooth Brushes
2:- PERSONAL CARE
 Beauty Soap - Palmolive Natural
 Carbolic Soap - Azadi
 Skin Germ Protection Soap – Protex
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3:- SURFACE CARE
 Max Bar
 Azadi Dish Bar
 Max Scourers
 Max Liquid
 Max Antibacterial
Page-1
4:- FABRIC CARE
 Brite Maximum power
 Express Power
 Bonus
 Softlan
6

MISSION OF SUPPLY CHAIN OF COLGATE-
PALMOLIVE
Colgate-Palmolive’s mission of supply chain is to
 reduce total delivered cost
 extend technology resources
 develop excellence in purchasing
 Logistics and sourcing processes
PROCUREMENT AT COLGATE-PALMOLIVE
DECISION CRITERIA:-
 Fair and uniform consideration is given to suppliers.
Buying behavior is based on following objective criterias
 Price
 Quality
 Suppliers Reliability
 Suppliers Integrity
 Innovation
 Commitment to Improve continously
POTENTIAL SUPPLIERS:-
COLGATE-PALMOLIVE is expecting following things from the potential
suppliers
 Creativity
 Value Addition
 High focus on Customer service
 Use of Technology
7

INDIRECT MATERIALS
Indirect are non-production materials. This category encompasses a wide
range of products and services. There is significant potential for business for
suppliers capable of delivering savings, efficiency and simplification.
Examples of indirect materials and services are:
 Temporary services
 MRO
 Office supplies
 PCs
 Relocation
 Travel
 Express mail
 Marketing & Advertising Goods and Services
Page-3
PACKAGING MATERIALS
The quality of packaging materials is the key to finished product on-shelf
presence. Following are the types of packaging materials needed.
 Bottles
 Tubes
 Caps
 Corrugate
 Folding cartons
 Pumps
 Films
 Displays
 Aerosol cans
 Labels
8

RAW MATERIALS
Colgate-palmolive purchases the highest quality raw materials for use in all
of their products which include:
 Surfactants
 Sweeteners
 Emulsifiers
 Humectants
 Abrasives
 UV Absorbers
 Brighteners
 Colorants
 Thickeners
 Preservatives
SUPPLIER DIVERSITY PROGRAM:-
Colgate-Palmolive strive to develop relationships with suppliers which will
help them to exeed its stakeholders expectations for quality, cost
effectiveness and innovation. They implement best practices and tools
including supplier managed inventory, supplier certificatrion, cost modeling
and web-enables transactions. They have Supplier Diversity Programs that
gives them high access to a rich pool of minority-owned and women-owned
business.
MANUFACTURING AT COLGATE-PALMOLIVE
They have two manufacturing plant one is in HYDRABAD and second is in
HUB. In Hyderabad they manufacturing all the toothpaste production and
other product are manufactured in hub.
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DISTRIBUTION AT COLGATE- PALMOLIVE
LOGISTICS:
They have their own fleets for transportation of goods. But their distributors
some time source the transportation and the decision for the selection of
third party logistic is decided on the basis of term and condition and from
the budget of distributor.
 Colgate-Palmolive addresses the total movement of materials and
products through the supply chain starting with our vendors and
concluding with the customer, with the goal of optimizing cost and
service.
 They support the application of product replenishment based on “pull”
strategies as these come close to addressing true customer demand.
 They use strategic modeling tools as part of continuous improvement
studies and assessments to evaluate and determine least cost.
 It adapts best practices in a way to recognize differences in needs
between emerging, developing, and developed markets in which they
sell their products.
 Identification and application of integrated enterprise-wide
information management systems is highly influenced.
 Participation in key industry groups to broaden skills and to
benchmark best practices is highly aimed.
 Identification and alignment with select global third-party providers to
jointly seek logistics efficiencies.
10

DISTRIBUTION CENTRES:
They have approximate 10-14 distribution centre in Karachi. Distributor use
SHEHZOOR most of the time in vehicle.
INFORMATION MANAGEMENT AT COLGATE
PALMOLIVE:
SAP SOFTWARE:-
Colgate-Palmolive has been managing the distribution centers of more than
200 countries and territories successfully with SAP® software for years. It
later turned out SAP warehouse Management Software with a focus on task
and resource management functionality.
Their strong focus is that whatever volumes are going through a warehouse
today, they want to maximize them.
SAP software was implemented to enable faster throughput of higher
volumes through their supply chain to the end customers.
Using the SAP warehouse management software the company can
automatically manage;
 Warehouse tasks and the resources
 Users and equipment required to perform the tasks
 Assesses current workload
 Physical location of resources to continuously optimize the sequence
in which tasks are processed
 Best resource is used for the job because each step is done at the right
time
 Warehouse planners and supervisors can override sequences if
delivery priorities change
11

FUNCTIONS OF SAP SOFTWARE:-
 SAP software electronically assignes warehouse workers for the
unloading task via terminals mounted to their equipment.
 SAP software tells them where to place the most assessable handling
unit.
 SAP software directs the workers to the pick and drop zone if they
cannot put the units into high rack storage.
 SAP assigns a high reach boom operator to bring the goods to a
specific location.
 If the inventory falls below a certain level the software automatically
creates a transfer order prompting the user to pick a pallet and
replenish the bin.
ADVANTAGES OF SAP SOFTWARE:-
 Streamlined put-away and picking processes
 Optimized equipment use
 Improved inventory accuracy to greater then 99%
 Eliminated configuration, testing of custom solutions
 Utilize equipment more accurately
 Accelerated outbound Shipping
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 Tasks are automatically assigned to multiple people
 Increasing supply chain efficiency
WAREHOUSE AT COLGATE-PALMOLIVE
Facilities:
They have only 1 ware house which is in korangi. AT DAOWOOD
CHOWRANGI
DECENTRALIZATION:-
Colgate-Palmolive is focusing on the process of decentralization
In a decentralized environment they control planned downtime for
maintenance. The decentralized SAP warehouse management application
communicates directly with the SAP business enterprise software.
The information flow includes outbound and inbound deliveries, material
and vendor master data, and batch management data. When a sales order is
entered into the SAP business software, the order is converted to a delivery
and sent to the SAP warehouse management software via application link
enabling (ALE) to create the transfer order and launch task and resource
assignment. Once delivery is complete, another message goes back to the
central system. Colgate is next looking at voice enablement to match
warehouse tasks with voice prompts and responses. It also wants to take
advantage of warehouse management functionality for cross- docking to
Move goods directly from receipt to shipment without storing; yard
management to manage doors and trailers; and value-added services for
things like customer-specific packaging.
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APENDIX:
ARTICLE # 1:
Colgate-Palmolive: Siemens to implement SAP ERP software solution
KARACHI (December 24 2008): Siemens to implement SAP ERP software
solution at Colgate-Palmolive (Pakistan) Limited. Siemens considered as
partner of choice for fast growing companies planning establishment of solid
IT foundations to fuel business growth.
An agreement was signed at a ceremony held in Karachi. Zulfiqar Ali
Lakhani, Managing Director Colgate-Palmolive (Pakistan) and Adnan
Bashir Khan, Head of BU ITS Siemens Pakistan signed the contract on
behalf of their respective organisations.
As part of this project, Colgate-Palmolive Pakistan, a leading name in
consumer products sector with reputed household brands as Colgate
Toothpaste, Max, Palmolive Naturals, Brite Maximum Power and many
other leading brands, will implement SAP ERP modules including
Financials, Supply Chain and Plant Maintenance. This software will provide
optimum tracking and management of plant commissioning activities as well
as better control over procurement and supply chain operations, enabling
increase efficiencies, better supply chain visibility and quicker decision
making. Siemens Pakistan would offer complete SAP consulting and
training services in this regard to Colgate-Palmolive (Pakistan) project team.
SAP is the world's no. 1 ERP software system and Siemens, the first
company to implement SAP ERP in Pakistan is also the leading SAP partner
having to its credit the maximum number of SAP ERP implementations
locally. Colgate-Palmolive (Pakistan) Limited, with over two decades of
brand excellence has built a reputation as a successful Consumer Products
company with the highest ethical standards.
14

ARTICLE # 2:
“We implemented the SAP software to enable faster throughput of
higher volumes through our supply chain to the end customer.”Brian
Madel, Senior Manager AMSSO Supply Chain, Global IT,Colgate-
Palmolive Company
COLGATE-PALMOLIVE
Colgate Uses SAP® Software for Task and Resource
Management to Speed Goods through the Supply Chain
Colgate-Palmolive Company (New York) is a leading global consumer
Products Company, selling brands like Colgate, Palmolive,
Mennen, Soft-soap, Irish Spring, and Hill’s Science Diet and Hill’s
Prescription Diet pet foods in more than 200 countries and territories. A lot
of product moves through its warehouses, and Colgate has been managing
these distribution centers successfully with SAP® software for years. It just
rolled out SAP warehouse management software, with a focus on task and
resource management functionality, to raise its game even higher.
“Our goal – always – is that whatever volumes are going through a
warehouse today, we want to increase them,” says Brian Madel, senior
manager AMSSO supply chain, global IT at Colgate-Palmolive. “We
implemented the SAP software to enable faster throughput of higher
volumes through our supply chain to the end customer.”
Using the SAP warehouse management software, which is now part of the
SAP™ ERP application, the company can automatically manage warehouse
tasks and the resources – users and equipment – required to perform those
tasks. The software assesses current workload and the physical location of
resources to continuously optimize the sequence in which tasks are
processed, so each step is undertaken at the right time and the best resource
is used for the job. With complete transparency of Operations, warehouse
planners and supervisors can override sequences if delivery priorities
change.
Colgate rolled out the solution at high-volume distribution centers in Latin
America. The SAP warehouse management software initiates the transfer
orders for materials, indicating start and end points. The task and resource
management functionality then breaks the transfer order into discrete,
15

optimized processes. By the time a truck pulls into the distribution center
and backs up to the dock, warehouse workers are ready – after having been
electronically assigned the unloading task via terminals mounted to their
equipment and “talking” over an RF network to the SAP warehouse
management software. The workers scan the most accessible handling unit
on the trailer, and the software automatically tells them where to place it. If
they can’t put it away with their equipment – say, into high-rack storage –
the system will direct them to a pick-and-drop zone, and then assign a high-
reach Boom operator to bring the goods to a specific location. “With the new
software, we have been able to streamline our process for replenishing
distribution centers from our manufacturing plants,” Madel says. “We’ve
also streamlined replenishment within the warehouse. We set up the task and
resource management software to monitor each bin. When inventory falls
below a certain level, the system automatically creates a transfer order,
prompting a user to pick a pallet and replenish the bin; it’s a fully automated
process to continuously restock inventory. We’ve also accelerated outbound
shipping; tasks are automatically assigned to multiple people working on
different pieces of equipment in different areas of the warehouse, so they all
pick simultaneously for the same delivery.” That means a faster supply
chain. Says Madel, “We’ve increased volumes for pallet and case picking
throughout our warehouses. We have streamlined our put-away and picking
processes. We now utilize equipment more efficiently. We’ve improved
inventory accuracy to greater than 99%. And there are even more benefits
we expect to realize. We feel we are just scratching the surface of what the
software can do.”
Decentralization = High Performance
Colgate runs the warehouse management software on a separate server from
the corporate SAP enterprise resource planning application. Says Madel,
“Each warehouse user is logged onto the warehouse management system;
RF processes are extremely performance dependent. The last thing we want
to do is slow down our people. If they scan a handling unit and have to wait
for the system to come back and tell them what to do, we lose productivity.
Separating warehousing from other SAP software functions greatly
improves performance from an end-user stand-point. In a decentralized
environment, we also control planned downtime for
Maintenance – this is crucial for warehouses that operate 24x7.” The
decentralized SAP warehouse management application Communicates
directly with the SAP business enterprise software.
“The communication is very reliable and very robust – there are
Absolutely no issues,” Madel says. The information flow includes
16

Outbound and inbound deliveries, material and vendor master Data, and
batch management data. When a sales order is entered into the SAP business
software, the order is converted to a delivery and sent to the SAP warehouse
management software via application link enabling (ALE) to create the
transfer order and launch task and resource assignment. Once delivery is
complete, another message goes back to the central system.
Colgate is next looking at voice enablement to match warehouse
Tasks with voice prompts and responses. It also wants to take advantage of
warehouse management functionality for cross- docking to move goods
directly from receipt to shipment without storing; yard management to
manage doors and trailers; and value-added services for things like
customer-specific packaging. Says Madel, “We will continue to further
leverage our SAP software for warehouse management to improve our
business performance.” www.sap.com/contactsap50 083 026 (07/03) Printed
in USA.
© 2007 by SAP AG. All rights reserved. SAP, R/3, mySAP, mySAP.com,
xApps, xApp, SAP Net Weaver, Duet, Partner Edge, and other SAP
products and services mentioned herein as well as their respective logos are
trademarks or registered trademarks of SAP AG in Germany and
in several other countries all over the world. All other product and service
names mentioned are the trademarks of their respective companies.
Data contained in this document serves informational purposes only.
National product specifications may vary.
These materials are subject to change without notice. These materials are
provided by SAP AG and its affiliated companies (“SAP Group”)
For informational purposes only, without representation or warranty of any
kind, and SAP Group shall not be liable for errors or omissions with
Respect to the materials. The only warranties for SAP Group products and
services are those that are set forth in the express warranty
Statements accompanying such products and services, if any. Nothing herein
should be construed as constituting an additional warranty.
Company
• Name: Colgate-Palmolive
Company
• Location: New York
• Industry: Consumer products
17

• Products and services: Oral, personal, and home care; pet nutrition
• Revenue: US$11.4 billion
• Employees: 36,000
• Web site: www.colgate.com
• Partner: SAP® Consulting
Challenges and Opportunities
• Increase warehouse throughput
• Replace custom RF transactions with standard, flexible SAP solution
• Separate warehousing from enterprise resource planning operations for
performance intensive environment
Objective
Install high-performance, decentralized solution for task and resource
optimization SAP Solution and Services SAP software for warehouse
management, now a part of the my SAP™ ERP application
Implementation Highlights
• Rolled out software in 10 months to high-volume distribution centers in
Latin America
• Used internal project management process
• Worked with the business owners to understand processes during as-is
analysis
• Developed scenarios, reviewed them with the business users
• Tested real-life scenarios
Why SAP
• Colgate-Palmolive’s previous experience and satisfaction with SAP
software
• The software’s comprehensive, flexible, standard functionality Benefits
• Increased volumes for pallet and case picking
• Streamlined put-away and picking processes
• Optimized equipment use
• Improved inventory accuracy to greater than 99%
• Eliminated configuration, testing of custom solutions
Existing Environment
SAP software for enterprise resource planning
Third-Party Integration
• Database: Oracle
18

• Hardware: IBM
• Operating system: IBM AIX
19

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