P&G after cutting costs

Anybody else had one of these emails?

Dear External Business Partner(s),

This is to kindly invite your participation and engagement in the upcoming P&G’s European Transportation Commercial intervention (LOOP), which is kicking-off with this note.

The bid event will start as of Monday February 10th and will close on March 5th. - invite will follow on Feb.10th

You will have the unique opportunity to access a platform providing an exclusive view on P&G’s networks and flows spanning across the entire European continent and beyond. With that, you will get the chance to further optimize your flows, create synergies, and close the Loops.
From a P&G standpoint, we remain keen at identifying, testing, and implementing breakthrough & sustainable solutions.
We look to further step-up our Supply Chains’ resiliency, while increasing flexibility, agility, and our ability to respond to business growth and market expansions short, mid, and long-term. LOOP is equally designed to further fuel our cost optimization journey via Competition & collaboration, targeting a range of 10-15% vs. existing solutions. This target considers 1) newly introduced innovative/digital solutions, 2) the significant empty miles’ rate across Europe alongside an imperative need to flow goods more sustainably, 3) and an increased probability to provide you with the flows that will enable your internal synergies and optimizations. This is powered by a broad, healthy, and capable supply base.
LOOP Scope:
The LOOP program leverages a multi-dimensional sourcing approach. It encompasses different Transportation Modes (Road, Trains, Short Sea, etc…), a mix of local/domestic/international flows, a broad geographic coverage beyond the continent of Europe, and a wide variety of P&G transported goods ranging from Raw and Packaging Materials all the way to Finished Products.
Key Expectations:

  1. Service: Best-in-Class Service, with unequivocal track-record on ON-Time Delivery, Capacity, Agility, and Flexibility.
  2. Cost: Sustainably Competitive Rates (10-15% Cost optimization) fueled by a mix of Savings Streams (as per below)
  3. Cash: 120 Days Payment Term – Enabled by P&G’s Supply Chain Financing Program (Upon need)
  4. Compliance: Acceptance and Adherence to P&G’s contractual agreements, including Allocation Specifications.
  5. Resilience: Business Continuity Planning with Back-up Solutions, including Immediate Recovery Plans
  6. Focus: A Focused participation approach in areas where you can generate significant value across cost and service.
    We strongly recommend your time in-depth assessment of P&G’s flows/scope, business needs and expectations as you
    confirm your participation.
    Savings Streams:
    A- Short/Mid Term:
  7. Competition: Fueled by a Broad and capable Supply Base
  8. Network Efficiencies: Empowered by Empty Miles’ Reduction, and Flow Optimizations.
  9. Operational Optimizations: Enabled by Productivity, Process Improvements, & Loss Elimination
  10. Vehicle Fill Improvement: Aided by Suitable Equipment
  11. Innovation: Digital Solutions, Transportation Digitalization & Platforms, Innovative Equipment
    B- Long Term:
    Improved Business Models: via Suggesting new operational models and Supply Chain Design
    Next Steps:
  12. Inquiry Package: To be sent by our Electronic Platform (COUPA) – (by end of week of Feb 3rd 2020)
  13. Confirmation of Participation via COUPA Platform & Registration (by end of week of Feb 3rd 2020)
  14. Further Instructions will Follow Pending Point 2.
    Thank you for your interest in P&G’s business. This is a great opportunity to further grow/develop our existing relationships
    where they exist and develop news ones with those of you who decide to join us on this exciting journey. Looking forward
    to your responses as we collectively turn Transportation into a true source of competitive advantage for our joint businesses.

General haulage isn’t something I’m normally interested in, but this caught my eye due to large amount of corporate language used, and the eye opening 120 days payment terms, which I presume caught others attention too, as this also popped into my mail box about a week after:

Dear partners,

As a frequent asked question, we would to clarify the below Payment Term point:

P&G has a target of 120 days yet we will proceed with max allowed terms in every specific country. We would like to encourage everybody to join and share the best proposal during this bidding event, 120 days is not a hard point yet our target.

So although I’m having trouble translating the original email, it seems to me like they would like to reduce their rates while taking as long as possible to pay.In the name of efficiency and environmental friendliness.

I can see the owner/drivers queueing around the block for this AMAZING opportunity…(strong sarcasm)

Sent from my ONEPLUS A5000 using Tapatalk

I believe the LOOP is about recycling and taking packaging back in house which can create its own problems. The rates are fine for 1 way traffic, but when you have to do an unpaid roundtrip it doesn’t work. I remember a bidding process. We had to bid in December for the following years work, its very difficult to judge how many loads you require in August from London or Newcastle. I found if you took on 50 loads from London, that is what you got, no more, no less. If you did less they knocked you off the bidding list next year.

I believe the list was alphabetical too so the A’s get the first choice, the Z’s get the dregs, and at the last minute.

Someone won the star prize for this example of management-speak waffle-babble phrases, it’s got all the right ones in it, deserving a thunderous round of applause from the shiny suits and pointed shoes.

External Business Partner engagement, bid-event…unique opportunity to access a platform providing an exclusive view on networks and flows spanning across the entire… further optimize your flows, create synergies…breakthrough & sustainable solutions…designed to further fuel our cost optimization journey…innovative/digital solutions… imperative need to flow goods more sustainably… enable your internal synergies and optimizations…program leverages a multi-dimensional sourcing approach…Best-in-Class Service, with unequivocal track-record on A Focused participation approach in areas where you can generate significant value Business Continuity Planning with Back-up Solutions, Operational Optimizations…Network Efficiencies… . a true source of competitive advantage… Empowered… join us on this exciting journey.

0/10 see me after school for detention. Write out 200 times “I must learn to write in plain English”.

cav551:
Someone won the star prize for this example of management-speak waffle-babble phrases, it’s got all the right ones in it, deserving a thunderous round of applause from the shiny suits and pointed shoes.

External Business Partner engagement, bid-event…unique opportunity to access a platform providing an exclusive view on networks and flows spanning across the entire… further optimize your flows, create synergies…breakthrough & sustainable solutions…designed to further fuel our cost optimization journey…innovative/digital solutions… imperative need to flow goods more sustainably… enable your internal synergies and optimizations…program leverages a multi-dimensional sourcing approach…Best-in-Class Service, with unequivocal track-record on A Focused participation approach in areas where you can generate significant value Business Continuity Planning with Back-up Solutions, Operational Optimizations…Network Efficiencies… . a true source of competitive advantage… Empowered… join us on this exciting journey.

0/10 see me after school for detention. Write out 200 times “I must learn to write in plain English”.

Agreed.
.
Could be re-written in part as:
We want to cut our costs, and look good.
.
To do this we will load you into and out of our factories, so telling customers we are cutting inefficient empty running.
Makes us look good! Also ties you closer to us as you won’t be free to chase better paying jobs.
And with our payment scheme you won’t be able to cut and run, in case we pay on even longer terms.
.
Of course, maybe I’m misinterpreting what’s said?

Of course, maybe I’m misinterpreting what’s said? quote. franglais…

no mate I think your interpretation is spot on… just a load of corporate drivel hiding the true meaning of “we want you tied to us at ■■■■ rates and we’ll drop you when we like”… scum. :imp:

m.a.n rules:
Of course, maybe I’m misinterpreting what’s said? quote. franglais…

no mate I think your interpretation is spot on… just a load of corporate drivel hiding the true meaning of “we want you tied to us at [zb] rates and we’ll drop you when we like”… scum. :imp:

I’m sure there’s potential for a joke here somewhere? I can’t work it snappily enough though.
P & G:
On the second name, taking a bet? Or a chance?
On the first name, can we rift on a medical specialization? Considering what they are trying to do to you!