Procter & Gamble is optimistic about the expected cost savings resulting from its implementation of artificial intelligence (AI) in the supply chain, with the goal of restoring productivity levels to pre-COVID standards.
The company’s global Supply Chain 3.0 program, aimed at bolstering supply chain resilience through automation and data analytics, is improving the detection of potential cost-saving opportunities. This was highlighted by P&G CEO Jon Moeller during an earnings call with investors.
In addition, this initiative is promoting enhanced collaboration with retailers across the entire supply chain instead of concentrating solely on isolated optimizations. This collaborative strategy involves using data and machine learning algorithms to optimize truck scheduling, minimize driver idle time, and utilize AI tools for improving fill rates, dynamic routing, and sourcing efficiency.
As a result of these strategic measures, the second-largest publicly traded consumer goods company anticipates cost-saving opportunities ranging from \(200 million to \)300 million in these areas, according to Moeller.
P&G’s Advancements in Artificial Intelligence
Like many other consumer goods companies, P&G has been exploring various promising AI applications. P&G Chief Information Officer Vittorio Cretella recently emphasized the company’s dedication to becoming an “AI-first” organization, including the deployment of a machine learning platform utilized in 80% of its global operations.
The establishment of the company’s “AI Factory” has significantly boosted the speed and efficiency of its data scientists by a factor of 10, as per the executive’s report.
Furthermore, P&G is harnessing AI technology in product innovation, enabling better control over digital scent creation to enhance both product development and design processes.
