P&G, which owns brands such as Tide and Crest, has gone into a cost-cutting mode in response to decreasing consumer demand and increasing raw material and shipping costs. In fiscal year 2023, the business anticipates a $3.9 billion after-tax headwind from commodities and logistics. As part of its Supply Chain 3.0 effort, which it aims to reveal at an investor meeting later this month, the CPG behemoth is aiming to streamline operations and procurement.
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While specifics on Supply Chain 3.0 are limited, improving automation and digital capabilities will almost certainly play a significant role. According to P&G’s 2022 annual report, the company is substantially investing in improving its digital capabilities in order to cut costs and accelerate decision-making. Product redesigns and price increases have occurred. In order to combat growing inflation, P&G has reformulated products and raised prices.
