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Answer to Q1 - P&G was able to improve their supply chain efficiency - Rachel

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Answer to Q1 - P&G was able to improve their supply chain efficiency - Rachel

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Q3 - How did Amazon's partnership with P&G help improve their supply chain management overall?

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Q3 - How did Amazon's partnership with P&G help improve their supply chain management overall?

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P&G was able to improve the positioning on the online market for mass consumption items which traditional have been commercialized in supermarkets. The key factor is Prime service and subscribe and save. Many of this items are requested on a regular cadence (cleaning supplies) and the customer can be educated to plan their demand through the discount incentive offered by subscribe and save. Or they can realize they need a particular item with short notice, but trip to super market can be avoided by Prime same day, or just ordering and waiting a couple of days. P&G can position brands in Amazon customer base mind, strengthen overall brand. Also demand planning can be delegated in Amazon, and all the distribution chain.

Amazon was able to enter in a segment traditionally dominated by brick and mortar supermarket chains, and start showing the value and convenience of e-commerce on this segment too. Also P&G offered a wide variety of products that are already accepted and recognized by consumers. Amazon didn't need to work on the value chain of the product (raw material to finished good, R&D, consumer test), they could just focus on the commercialization and also without getting the financial burden of a totally owned stock thanks "pay-per-use" model.

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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I think was very smart negotiation. P&G's outsource the storage of their products, in the well established centers and warehouses of Amazon, reducing infrastructure, management and labor costs. Also, they have the guarantee of immediate delivery with Amazon Prime, and the elimination of intermediaries, who could increase the costs for final consumers. This guarantees their final costumer satisfaction.

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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P&G obtain a lot of benefit of this partnership, was able to to reduce their inventory costs and make sure their products were available on Amazon's website. Additionally, they improve their supply chain, which a win win situation.

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Proctor and Gamble gained the expanded scale offered by Amazon

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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Not only was P&G able to become more successful when partnering with Amazon, it benefit them in many ways. It allowed them to reduce costs on storing inventory and labor costs. It allowed them to utilize another company to perform the 'heavy lifting' while they payed for their services.

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Q2 By Amazon managing P&G's inventory in their warehouses and P&G paying only for what was sold,  allowed P&G to reduce their inventory costs while ensuring that their products were always available on Amazon's website.

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Q2 By Amazon managing P&G's inventory in their warehouses and P&G paying only for what was sold,  allowed P&G to reduce their inventory costs while ensuring that their products were always available on Amazon's website.

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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P&G was able to reduce their IOH and storage costs by utilizing this partnership.

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question 1 P&G did not have the expense of having to carry their inventory. 

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question 1 P&G did not have the expense of having to carry their inventory. 

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P&G gained an efficiency increase in their supply chain by partnering with Amazon.

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Inventory storage costs were reduced as Amazon was now in charge of managing their products inventory. This allowed overall costs to customers to be reduced while maintaining if not increasing P&G's profits. Amazon also had the products more readily available as they can ensure inventory matches the fluctuations in customer demand.

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Question #2 "Why was the "pay-per-use" model an effective solution for P&G's inventory management?"

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Question #2 "Why was the "pay-per-use" model an effective solution for P&G's inventory management?"

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This model was effective because P&G was able to reduce their cost and also able to have product always available which will ultimately lead to a higher impact to the company's performance.

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This is a unique partnership way to ensure that the benefit to P&G is transparently visible using direct data. Also, Amazon utilized this to our benefit by increasing partnership on P&G Products. Great use case on data driven decision making of how Amazon handled supply chain, inventory & way forward for other companies to collaborate. This way there is a demand being created by Amazon for others to optimize using our tech & Amazon can make business value of the tech.

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Answer to Q1: Amazon's data analytics capabilities provided P&G with valuable insights into customer behavior, demand patterns, and market trends. This allowed P&G to make more informed decisions about product development, marketing strategies, and inventory management.

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Answer to Q1: Amazon's data analytics capabilities provided P&G with valuable insights into customer behavior, demand patterns, and market trends. This allowed P&G to make more informed decisions about product development, marketing strategies, and inventory management.

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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Amazon was able to provide P&G with consistent structure to the supply chain. P&G no longer had to worry about inventory management across locations in the country which allows them to drive focus in a different direction.

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Q4. What lessons can other companies learn from this successful partnership between Amazon and P&G?

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Q4. What lessons can other companies learn from this successful partnership between Amazon and P&G?

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Lessons that other companies learn :

1. Flexibility and Adaptability : Be open to adjusting strategies based on market changes or new opportunities.

2. Keep the end user in focus to create meaningful value.

3. Innovate to enhance customer experience and satisfaction.

4. Leverage each other's strength.

5. Invest in sustainable long term partnership rather than short term gains.

Diana

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Q5 potential risks - by expanding products to scale with Amazon through Prime and into many additional countries there could be a high ramp up of demand where the manufacturer is not able to keep up.

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Q5 potential risks - by expanding products to scale with Amazon through Prime and into many additional countries there could be a high ramp up of demand where the manufacturer is not able to keep up.

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Scalability--As more customers use the service, revenue increases without requiring significant upfront investment.

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Improve supply chain efficency

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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For Amazon the immediate benefit was to eliminate the process of order, shipping, storage, and verifying inventory prior new order. This eliminates time consuming. For P&G the benefit was to eliminate storage and shipping cost (fixed), because a expert third party preformed for them.

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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Reduced Inventory Costs: By using Amazon’s warehouse services and adopting the "pay-per-use" model P&G only paid for the inventory that was sold, rather than maintaining large amounts of unsold stock, reducing their holding costs.

Improved Inventory Management: Amazon’s expertise in supply chain management helped streamline P&G’s inventory processes, ensuring that products were always available on Amazon’s platform, reducing risk of stockouts.

Increased Reach and Sales: Through Amazon’s global reach, P&G was able to extend its presence across more regions and countries, making its products available to a wider customer base. Probably this is the reason why further negotiations were made in 2018.

Operational Efficiency: By outsourcing inventory management to Amazon, P&G could focus on their core operations, while Amazon handled the logistics and supply chain, leading to overall cost savings and operational improvements.

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P&G was able to improve its supply chain efficiency

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Increase the coverage of products and customers.

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Q1-Not only was this more efficient for P&G to have Amazon manage their inventory but it ensured that they are still able to provide good quality products at a lower inventory cost.

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Q1-Not only was this more efficient for P&G to have Amazon manage their inventory but it ensured that they are still able to provide good quality products at a lower inventory cost.

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Q1. Cost reduction and cash flow (improved inventory cost with "pay-per-use" model). Logistics improvement (utilizing Amazon's high performance logistics network). Product availability and direct sales (utilized Amazon sales platform). Limited risk of trial fail ( partnered with a leader in supply chain management which increased chances of success). Customer experience improvement (P&G customers have immediate access to full product range).

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Q1. Cost reduction and cash flow (improved inventory cost with "pay-per-use" model). Logistics improvement (utilizing Amazon's high performance logistics network). Product availability and direct sales (utilized Amazon sales platform). Limited risk of trial fail ( partnered with a leader in supply chain management which increased chances of success). Customer experience improvement (P&G customers have immediate access to full product range).

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Helen

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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What benefits did Procter & Gamble gain from their partnership with Amazon?

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P&G reduced overhead significantly as well as their risk associated with carrying costs. Allowing products to be stored within Amazon for no cost until the sale was a win/win for P&G allowing for their products to also hit their end consumer likely quicker than per usual with Prime and next day shipping available.

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Question #5 Potential Challenges or Risks

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Question #5 Potential Challenges or Risks

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This strategy could lead to increased reliance on Amazon for inventory management, which could reduce P&G’s direct control over stock and fulfillment. Amazon also assumes the upfront costs of holding inventory, which could pose financial risks if products don’t sell as expected. Lastly there could be risks around inaccuracies in forecasting or sudden changes in demand as we so often have at Amazon. As a result there could be excess inventory or shortages.

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Q2 - Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Q2 - Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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It served as an innovative way to take advantage of Amazon's market position as a company with massive diverse inventories of products. It allowed Amazon additional business doing what it already does well, while allowing P&C to focus on more pressing areas of the business.

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Q1-Reducing inventory costs while maintaining always products available

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Q1-Reducing inventory costs while maintaining always products available

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Q2-reduced costs

Q3-reducing inventory and reducing inventory costs

Q4- win win solution with value creation

Q5-shortage of products?

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

-> P&G were able to reduce their own asset by using the "pay-per-use" model.

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Q1 What benefits did Procter & Gamble gain from their partnership with Amazon?

Benefited from the state-of-the-art supply chain developped by Amazon without having the need to develop a similar network themselves, avoiding higher costs (supported by the pay-per-use model) and time-to-delivery being increased.

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Importance of strategic partnerships

Value of data sharing and transparency

Benefits of innovative payment models

Significance of pilot programs before full implementation

Importance of scalability in partnerships

Value of shared risk management

Benefits of leveraging each partner's strengths

Thinking outside the box and applying creativity

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5. What are some potential challenges or risks that could arise from this type of supplier contracting model? 

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5. What are some potential challenges or risks that could arise from this type of supplier contracting model? 

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Shelf-life of the P&G products based on new inventory model at Amazon.

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Question #2 - 2.	Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Question #2 - 2.	Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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It supported definitely a cost strategy to reduce their inventory dedicated for Amazon and allow them to optimize working capital by partnering inventory available and target to Amazon channel, Both parts obtained benefit and is a clear sample of "win - win".

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1. What are some potential challenges or risks that could arise from this type of supplier contracting model?

A: Slow Moving Inventory

A: Space needed for other products

A: Defective or Damaged Inv

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Q3 Improved overall efficiency by reducing inventory costs, maintaining constant availability of product, and broader product offering.

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Q3 Improved overall efficiency by reducing inventory costs, maintaining constant availability of product, and broader product offering.

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1. P&G gained Amazon's methodology of inventory management and customer fulfillment

2. Effective because P&G makes widely used household goods and Amazon is a major retailer of household goods.

3. Supply chain improved through less touches, as in, not needing to ship items from P&G to Amazon. Less touches means less room for error.

4. Other companies can learn from this unique arrangement and mirror the method for fast moving items

5. Risks include the intermingling of Amazon and P&G methods of management within the walls of P&G's warehouse... i.e. if there's a safety incident, who is responsible/accountable/consulted/informed

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Q2. The pay-per-use model was beneficial for Procter because it reduced storage costs, particularly on dormant stock and unsold inventory. It also helped them avoid labor and rental costs related to warehousing, which was offloaded to Amazon, as well as potential software investments for inventory management and storage regulatory compliance.

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Q2. The pay-per-use model was beneficial for Procter because it reduced storage costs, particularly on dormant stock and unsold inventory. It also helped them avoid labor and rental costs related to warehousing, which was offloaded to Amazon, as well as potential software investments for inventory management and storage regulatory compliance.

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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Why was the "pay-per-use" model an effective solution for P&G's inventory management?

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By doing this P&G always ensures their products are available for sale on Amazon and only pays for sales which are made.

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Q3. How did Amazon's partnership with P&G help improve their supply chain management overall?

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Q3. How did Amazon's partnership with P&G help improve their supply chain management overall?

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Amazon's partnership with P&G improved supply chain management by reducing inventory costs through a pay-per-use model, leveraging real-time demand data, and ensuring consistent product availability for customers.

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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How did Amazon's partnership with P&G help improve their supply chain management overall?

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P&G company already very reputed company. And also their products also quality products. So Amazon's partnership with P&G easily improve their market in different places.

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This "pay-per-use" model allowed P&G to reduce their inventory costs while ensuring that their products were always available on Amazon's website.

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This "pay-per-use" model allowed P&G to reduce their inventory costs while ensuring that their products were always available on Amazon's website.

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Q1. What benefits did Procter & Gamble gain from their partnership with Amazon?

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Q1. What benefits did Procter & Gamble gain from their partnership with Amazon?

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Answer - P&G was able to reduce product cost and ensure their inventory was easily available for distribution.

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One key lesson from the Amazon & P&G partnership is that strong supplier relationships create value for both companies. By sharing responsibility for inventory through the pay-per-model, P&G reduced inventory costs while Amazon ensured products remained available for customers . This case shows that collobaration, trust, data sharing, and long - term partnerships can improve supplychain efficiency, reduce costs and deliver better customer outcomes.

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Proctor & Gamble was able to cut down on inventory storage costs and distributing costs, which allowed for P&G to expand their company and partnership with Amazon.