Thursday, 24 October Colgate Palmolive Colgate-Palmolive Company starts from a minor candle and manufacturer of soap.
As a follow-up to this article, I wanted to talk one-on-one with the leadership teams of the two companies and get their insights on the ten-year comparison. In this blog post, I share insights from Michael Corbo, the head of supply chain at Colgate.
Tell me about your job as a leader at Colgate. What do you believe has driven this success? We believe in consistency. My job starts with the shelf and service to the customer. I am responsible for the supply chain processes that deliver the goods and services to the shelf globally.
This is not a new mission for the supply chain organization. Over the last decade, we have had consistency in leadership and purpose. As a team, we believe in funding the growth. We ask the organization to take out waste and invest it back into the business.
We partner with the business leaders. In doing this, we want to leverage scale. We are data driven and hold ourselves accountable to the balance sheet. We realized, in this journey, that we needed to build systems to analyze data to drive better decisions.
To do this, six years ago, we built a support group of supply chain finance to support our decisions. It is a parallel group to our corporate finance group that reports directly to me.
It is easier said than done. Our business is complex. We have worked hard to get good at understanding the financial levers of the supply chain. We are disciplined in making capital investment decisions.
For example, we seldom outsource manufacturing. We take pride in our innovations in manufacturing. For example, we make the tubes for our toothpaste. This is a conscious choice. You are what you measure. We manage supply chain metrics.
Success is never final. Thanks Mike these are great insights. I have written a lot about supply chain talent, and I question if it is the true missing link of the supply chain. What do you think?
Do we have a talent crisis? As an organization, we believe in building talent systems and hiring from within. I take my job as the leader of the 22, global members of the Colgate supply chain team seriously.
I oversee succession planning for the supply chain organization. As a result, the reward and feedback systems for talent development are very consistent. The leader of the supply chain team has led succession planning for the last twenty-five years.
I believe that we should encourage people to move across the organization to get a greater understanding of the business. We do succession planning three times a year. I value cross-functional experiences.
I strongly believe that we cannot let regions operate as islands.The research report titled “Toothpaste: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of industry segments, trends, growth drivers, restraints, market share, size and demand projections and forecasts.
Meanwhile, when the price of Colgate toothpaste increase in the market, consumer will switch over to the consumption for Sensodyne toothpaste therefore this will cause Colgates’s quantity demanded decrease and then rise in the demand for Sensodyne toothpaste.
Supply Chain Strategy of Colgate Palmolive Toothpaste Objective: 1. To know the supply chain strategies used by the Colgate Palmolive ltd. 2. To know the distribution channels of the Colgate Palmolive toothpaste. Two good are Complements if an increase in the price of one causes a fall in demand for the other.
Ex: computers and software. If price of computers rises, people buy fewer computers, and therefore less software. Software demand curve shifts left. Software demand curve shifts left. DEMAND CURVE SHIFTERS: Tastes Anything that causes a shift in tastes toward a good will increase demand for that good and shift it’s a D curve to the right Ex%(5).
Price is already fully reflected in the slope of the demand and supply curve. Non-price factors affecting demand include income changes, changes in tastes, the availability or price of substitutes for the good or service, consumer expectations of future prices, interest rates and the like.