P&G has suggested that it will revisit the design of its supply chain if oil prices remain high. Such a move would represent a reversal of the 'distribution reinvention' which P&G announced last year.
P&G's new head of global supply, Keith Harrison, has said: "A lot of our supply chain design work was really developed and implemented in the 1980s and 1990s, when our capital spending was fairly high as a cost of capacity, and oil was 10 bucks a barrel. I could say that the supply chain design is now upside down. The environment has changed. Transportation cost is going to create an even more distributed sourcing network than we would have had otherwise."
Source by supplychainanalysis.igd.com
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