Colgate Palmolive

Colgate Palmolive is a multinational consumer products company; one of the most admired companies in India, with annual sales of US $12 billion and has operations in 200 countries. Colgate has separate procurement department to look after the needs. Colgate Australia, the local subsidiary of this global giant, is best known for its household, healthcare and personal care brands including Colgate, Ajax, Dynamo, Cold Power and Cuddly. To create a consistent level of IT support for staff across its Greater Asia and South Pacific regions, Colgate sought a specialist technology services provider to consolidate multiple internal and outsourced help desk arrangements. Colgate-Palmolive paid an InnoCentive member who found a solution to a fluoride powder injection problem a mere $25,000, a fraction of what it could have cost ColgatePalmolive to dedicate their R&D team to the problem until it was solved internally. The Global Procurement group is comprised of dedicated purchasing and logistics professionals from every division of Colgate-Palmolive: North America, Latin America, Europe, Asia, Africa and Hill's Pet Nutrition. Outsourcing : 1. Colgate Palmolive trusts Datacom to deliver a multilingual service desk to internal IT users across Asia Pacific. 2. Procurement outsourcing trend continues, as Colgate Palmolive turns over many purchasing functions of Indirect material to IBM in Europe and North America. The company purchases different products which they do not manufacture, from different places and the list of products and services are as given below: Global Indirect Materials 1. Temporary services 2. MRO 3. Office supplies 4. PCs 5. Relocation 6. Travel

7. Express mail 8. Marketing & Advertising Goods and Services

Global Packaging Materials

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Bottles Tubes Caps Corrugate Folding cartons Pumps Films Displays Aerosol cans Labels

These products are used for packing purpose and the quality of the products depends on the quality of these products. Global Raw Materials
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Surfactants Sweeteners Emulsifiers Humectants Abrasives UV Absorbers Brighteners Colorants Thickeners Preservatives

These raw materials are used to manufacture the different products and these are of the highest quality standards. Global Logistics The cost is optimized and best service is obtained through outsourcing the logistics activity and the movement of goods throughout the globe, starting from vendors to customers. The demand estimation is done from actual data using the IT services which is outsourced and pull strategies are developed using them. The differences between developing and developed nations are considered before developing the strategies. Supplier Diversity program Supply is not based on single vendor or supplier; it is based on different vendors from different places which is nearer to the local manufacturing plant. The Supplier Diversity initiatives are designed to reach out to minority-owned and womenowned businesses, build supplier diversity and develop mutually beneficial supply relationships. The Supplier Diversity team strives to foster supply relationships with minority-owned and women-owned businesses which will: Meet or exceed the expectations of Colgate-Palmolive stakeholders for quality, speed, innovation and cost effectiveness, and Contribute to the Colgate-Palmolive corporate objectives of Driving Growth, Funding Growth, and Becoming the Best Place to Work. The areas in which it has diversified suppliers are:

Car Service Catering Chemicals Communications Computer peripherals Construction Consulting

Information technology Investment management Janitorial Landscaping Legal services Market research Media

Contract manufacturing Co-packing Courier service Disposal service Employment service Flavor and fragrance in ingredients Graphic design

Packaging Printing Promotions Training Transportation Warehousing Waste management

Apart from the core activity of the company, manufacturing different products remaining are outsourced. DATACOM: Datacom is one of the largest Australasian-owned professional services companies, offering customers flexibility and choice. Datacoms capabilities include IT infrastructure management and support services, corporate service desks, data centre hosting, application and CRM development, outbound marketing programs and contact centre solutions. Datacoms centralized service desk support to Colgates 3,000 employees in 12 countries has given Colgate visibility over its genuine call volumes and increased first time resolve rates for technical queries, to boost satisfaction amongst Colgates internal IT users. With the success of the service of the company Colgate is in plan to implement this to other country across the globe. Colgate began its search for a supplier by investigating its existing global arrangement with a tier one outsourcing provider.

Outsourcing in Europe and North America: Colgate-Palmolive outsourced procurement and accounts payable processes for Europe and North America to capture new capabilities and efficiencies. With approximately $3.2bn in indirect procurement spend, Colgate believes that improving the efficiency of these business processes could generate more than $30m annually in incremental after tax savings through such activities as consolidating spend across functions, business units and geographies, negotiating better market pricing, improving spend compliance and leveraging advanced procurement technologies.

Advantages of outsourcing to the company 1. Consolidation of spend across functions, business units and geographies 2. Advanced procurement technologies that can drive efficiencies in administration and spend consolidation 3. Negotiation of better market pricing 4. Improve spending compliance reduction in maverick spend, or purchasing goods not on contract with suppliers.