Supply-Chain Partnership between P&G and Wal-Mart

Abstract

This paper describes the development of channel partnership between a manufacturer (Procter and Gamble, or P&G) and a retailer (Wal-Mart). Both major players in their industries, P&G and Wal-Mart found a way to leverage on information technology by sharing data across their mutual supply chains. The resulting channel has become more efficient because channel activities are better coordinated. There are reduced needs for inventories but greater returns by focusing on selling what the customers want. All in all, the supply chain between P&G and Wal-Mart has adopted a much better customer focus through the channel partnership. And it is mutually beneficial. This integration of the supply-chain information systems will become increasingly important both for enhancing business-to-business electronic commerce and for supporting the increasing volume and customization in business-to-consumer electronic commerce.

Key words