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LogoutThe operations management (OM) strategy of the Procter & Gamble Company is guided by aims for improving efficiency and effectiveness in meeting the company’s different needs in consumer goods markets around the world. The operations management (OM) strategy of the Procter & Gamble Company is guided by aims for improving efficiency and effectiveness in meeting the company’s different needs in consumer goods markets around the world. Highly productive operations aid effective strategy implementation. For example, Procter & Gamble’s operations managers can apply more extensive production capacity directives based on higher productivity. These factors contribute to the company’s capacity to maintain worldwide commercial stability. Current OM strategies and methods help Procter & Gamble achieve its business objectives. However, adjustments must be made in reaction to changes in P&G’s industry and market variables. Adjustments should be made to account for market demand and technology advancements.
1.Maintenance. P&G’s goal in this strategic decision area of operations management is to keep effective and adequate procedures in place, taking into account productivity and capacity, demand, and resources. The operations managers at Procter & Gamble have dedicated people for each process. For example, if an issue with the supply chain arises, the organisation has a specific supply chain management team. This operational method assures consistency in Procter & Gamble’s operations management rules and initiatives, resulting in consistency in consumer products business productivity and output.
2. Inventory Control. The operations management team of Procter & Gamble works on inventory management with the goal of matching inventory and organizational needs. The organization also analyses consumers, suppliers, and business productivity in this strategic decision area. Furthermore, Procter & Gamble’s marketing mix (4Ps) imposes inventory management needs. Retailer activities, for example, have an impact on P&G’s operations management decisions in this strategic area. The periodic technique and the first in, first out (FIFO) approach are two inventory management systems used by Procter & Gamble. FIFO reduces the number of raw materials and consumer items that spoil. Procter & Gamble’s operations managers also employ buffer inventories to deal with unexpected market demand swings.
3. Location Planning. In this strategic decision area, the operations management aims to achieve optimal distances from resources and target markets. Procter & Gamble takes a strategy that puts closeness to target markets first. For example, facilities are positioned where P&G’s consumer goods may be easily transported to merchants. In this situation, Procter & Gamble’s operations managers optimize the benefits of high productivity. High operational productivity in manufacturing and distribution facilities, for example, helps retailers reach a wider market.