Capstone Experience: P&G Supplier Lifecycle Management

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This semester, the Procter & Gamble Supplier Implementation Methodology Capstone team is creating a methodology for transitioning suppliers to a new Supplier Lifecycle Management (SLM) system. P&G currently manages their supplier data manually which is a very time consuming and inefficient process requiring many internal and external resources. To improve this process, P&G is implementing a new SLM. This will establish a centralized location for P&G to manage their supplier’s data and allow suppliers to enter their own data, saving time and resources for both P&G and their suppliers while ensuring greater accuracy of the information. P&G has tasked our team with developing a methodology that will ensure a smooth transition of suppliers onto the new system.

Our team has developed a methodology for them to use that has three stages: Reach Out, Onboard, and Sustain.  To develop the methodology it was critical that we research best practices in change management.  We also took the additional step of benchmarking several large corporations and their experience with transitioning to new enterprise level systems.

The reach out stage will be P&G’s initial contact with suppliers informing them of the new system. This phase will segment suppliers to help better transition them to the system while providing a communication plan based on what segment the supplier falls in. During the onboarding phase, P&G provides the supplier with training and access to the new system, allowing the supplier to validate and update their data. After ensuring that the supplier has completed all necessary steps to the onboarding phase, P&G will then move the supplier into the sustainment phase. This phase is an ongoing process for the remainder of the supplier’s time with P&G and will provide continued support as well as an opportunity to provide feedback on the system and transition process. Good communication will be vital in this phase to ensure the supplier keeps their data updated and informs P&G of any employee turnover.  Additionally, P&G will be able to monitor the progress of suppliers throughout the transition and use escalation tactics to maintain expediency and accuracy during the transition process.

This methodology will assist P&G in maintaining more accurate supplier information, as well as reducing the amount of time required to manage a supplier.  The number of internal resources required at P&G will be greatly reduced while improving the relationship between suppliers and P&G.

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