Global Procurement Mission & Goals
To provide Colgate with a significant competitive advantage by reducing total delivered cost, extending technology resources and developing excellence in purchasing, logistics and sourcing processes.
Achievements and Past Successes
We strive for continuous improvements with our supplier teams.
We aim for cost reduction across every category.
- A multidisciplinary team from Colgate and JM Huber, a key oral care raw material supplier, identified potential savings across the supply chain. This team realized savings in excess of hundreds of thousands of dollars. This supplier relationship was featured in a Colgate-Palmolive Company Annual Report and is one example of the several preferred suppliers teaming with Colgate.
We are on the forefront of innovation.
- A major contract for preservatives used in personal care and household care products was awarded to a single supplier, delivering significant savings and leading to a unique research agreement.
- Three-year globalization contracts with key suppliers enabled reduction of the supplier base for a critical global surfactant from 11 to 4 suppliers.
- For a key toothpaste ingredient, the supplier base was reduced from 7 to 3, regional multi-year contracts with on-site manufacturing programs were put in place and record savings and total cost reductions were achieved over 5 years.
- In our Global Fragrances category, we had multiple suppliers, high cost structures, limited innovation, average quality fragrances and long lead times. Focused partnerships were initiated with two key external suppliers. As a result, new initiatives were developed including annual “Top to Top Meetings” (CEO/CEO), project and savings grids, cost improvement teams and detailed supply chain maps.
- Many “superior” fragrances have since been developed. In the household care category there were 7 for cleansers and 7 for light duty liquids. In personal care there were 4 for liquids and 5 for bar soaps. In fabric care, there were 7 for softeners and 5 for detergents.
Colgate-Palmolive’s strategy is to focus on global new products to drive growth. In the early 90’s, we were launching an average of 256 new products a year. By the mid 90’s that number grew to 469 per year. And recently that number has jumped to over 797 per year.