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Chapter 8
Supply-Chain Partnership between PG and Wal-
Mart
Michael Grean and Michael J. Shaw
Abstract: This paper describes the development of channel partnership between a
manufacturer (Procter and Gamble, or PG) and a retailer (Wal-Mart). Both
major players in their industries, PG 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 PG and W al-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: Integrated Supply Chains, Information Sharing, CRP, Channel Partnership
1. INTRODUCTION
One of the major transformations in the rapidly evolving digital
economy occurs in the supply chains of both traditional and e-commerce
companies. Information technology has enabled channel partners to trade
goods, share information, and integrate their processes, thereby reshaping
the inter-organizational dynamics
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