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International Case; reengineering case at Procter and
Gamble

P&G multinational corporation is known for its product
that include shampoo, soaps and toothpaste was committed
to improve the value of its customer it were sold through
various channels such as grocery retails, wholesaler, mass
merchandisers and club stores .the flow of goods in the
retail grocery channel was from the factor’s warehouse to
the distributor’s warehouse, and to the stores where the
customers selected the merchandise from the shelves.
The e improvement- driven company was not satisfied with
its performance and developed a variety of programmers to
improve the services and efficiency of its operation. One
such program was electronic data in charge(EDI) that
provide daily information about shipment from the retail
stores to P&G. the installation of system resulted better
result
Better services, reduced inventory level, and labor cost
saving. Another approach that continues replenishment
program (CRP).provided additional benefit to the P&G., as
well as the customers and retailers. Eventually, the total
ordering system was redesigned which resulted in dramatic
performance improvement s
The reengineering also requires restructuring the
organization. P&G is known for its brand management for
more than 50 years. But in 1980,s and early1990,s, the
brand management approach pioneered by the company in
the 1930,s a rethinking and restructuring .In a drive to
improve and the coordination several brands were
combined with authority and responsibility given to the

category managers .Such managers has the authority to
delete weak brands and thus avoid conflict between similar
brands .they were also held responsible for profits of
product category they were managing . The switch to
category management required not only new skills .but also
a new attitudes.

Questions1. The Reengineering efforts focused on the
business process system .Do you think other processes
such as human system, or other managerial policies
need to be considered in process design?

Question .2What do you think was the reaction of the
brand managers, who may have worked under the old
system for many years. When the category management
system was installed?

Question .3 as a consultant, would you have
recommended a top down or bottom up approach or
both to process redesign and organizational change?
What are the advantage and disadvantage of this
approach?

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P&g

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