P&G Leans Into AI for Dynamic Routing and Sourcing Optimization
Procter & Gamble is optimistic on the expected cost savings from its use of AI in the supply chain as it accelerates productivity levels to pre-COVID levels.
The CPG’s global Supply Chain 3.0 initiative, which seeks to build supply chain resilience through automation and data analytics, is increasing visibility into savings opportunities, said P&G CEO Jon Moeller in an earnings call with investors.
It’s also enabling them to work more collaboratively with retailers on the totality of the supply chain instead of piecemeal optimization, he noted. This includes using data and machine learning algorithms to optimize truck scheduling to minimize driver idle time, as well as leveraging AI tools to optimize fill rates and for dynamic routing and sourcing optimization.
- See also: Kraft Heinz Building KraftGPT Generative AI Assistant As It Moves Toward ‘Self-Driving’ Supply Chain
As a result of these efforts, the No. 2 publicly owned consumer goods company anticipates $200 million to $300 million of savings opportunities across these areas, said Moeller.
P&G’s AI Investments
Like many consumer goods companies, P&G has been exploring a range of promising use cases involving artificial intelligence. P&G CIO Vittorio Cretella recently shared details about its focus to become an “AI-first” business, including developing a machine learning platform that is being leveraged across 80% of its global business.
The company’s “AI Factory” is improving its data scientists speed and efficiency by 10x, according to the exec.
P&G is also using the technology within product innovation: AI-enabled technology is providing the CPG with more control over digital scent creation to improve both product development and design processes.
