Tempe, AZ January 6, 2003 Consumer goods giant Procter & Gamble is working with technology services company EDS to develop a new product lifecycle management (PLM) solution targeted at the consumer packaged goods (CPG) industry.
This project between the Cincinnati-based CPG manufacturer and the Plano, Texas-based software provider calls for the two companies to jointly develop a PLM package specifically targeted to support and facilitate plant design, artwork and packaging and the product innovation requirements within the CPG industry.
The partners will use EDS' Teamcenter PLM solution, already in use at P&G, as their starting point. As part of this new project, P&G plans to take its current base of 7,000 users on the Teamcenter platform to an estimated 30,000 users over the next five years.
"By forming a joint development relationship, we hope to promote a faster maturation of this technology, ultimately enabling P&G to deliver better consumer value by making the innovation pipeline more efficient," said Tom Massung, associate director for IT business solutions at P&G. "With Teamcenter, we have seen and expect significant cost savings through enabling shorter cycle times and elimination of rework in the package, artwork and machine design business processes."
EDS said that Teamcenter software enables manufacturing companies to manage entire product lifecycles in close collaboration with suppliers, partners and customers. The goal is for these virtual enterprises comprised of dispersed knowledge users and diverse application systems to design new products closely aligned with customer requirements and thus to be able to bring them to market faster and with less cost.
"We see the opportunity to leverage the more efficient innovation work process tools developed by other (non-CPG) industry verticals using Teamcenter solutions," continued Massung. "These industries have demonstrated success in substantially reducing cycle times and costs to innovate. Through the application of these best-in-class processes, P&G will be able to offer better value to our own consumers."
The project steering group for this strategic initiative will be led by senior executives from P&G and EDS charged with ensuring that the multiyear investments made by both companies behind Teamcenter Solution help solve the problem of inefficient innovation work process.
"P&G has a wealth of intellectual capital to bring to this initiative, both in terms of the company's industry leadership and its three years of experience using our PLM products," said Tony Affuso, president of EDS' PLM solutions unit. "EDS will leverage the P&G expertise and best practices to bring to market a Teamcenter solution that addresses the key business imperatives of the CPG industry an industry virtually untouched by the dramatic business benefits of product lifecycle management such as faster time-to-market, greater productivity and improved product quality."
Today's announcement further broadens the business relationship between EDS and P&G in the PLM space. The two companies have worked together previously on material, package, artwork and machine (process) design using EDS' PLM software.
"Through these joint efforts, we are transforming the way the consumer packaged goods industry uses PLM software," said Scott Klein, president of EDS' consumer industries and retail global industry solutions group. "Consumer packaged goods companies are facing increasing pressure to offer new and exciting product innovations, and then to bring those innovations to market faster. PLM software geared specifically to the wants and needs of consumer packaged goods companies can help make that happen."
The 165-year-old CPG manufacturer is no stranger to using new technologies to improve its supply chain processes. Last month P&G extended its relationship with software company Procuri, signing a multiyear agreement to use the provider's flagship e-sourcing solution and decision analysis tool. Earlier last year, software company MatrixOne announced that it would bring to market an application developed within Procter & Gamble for technical specifications management in the CPG and pharmaceuticals industries.
