Successful Outsourcing of Critical

ServicesServicesAshit Mehra

Associate Director, Asia GBS Leader for Supply Chain,

Sales and R&D, P&G

P&G at a Glance

Number of Employees 127,000

Countries of Operations 80

Countries Where Our Brands Are Sold

180Are Sold

Consumers Served by Our Brands

4.4 B

2010 Net Sales $82.6 B

• Among the world’s best-known household names.

• Represent 90% of P&G sales, more than 90% of profits.

• Includes 24 billion-dollar brands.

50 Leadership Brands

GBS is one of the 4 Pillars of P&G.

globalglobalbusinessservices

marketdevelopmentorganizations

corporatefunctions

globalbusiness

units

Customer Service Operation (CSO) Shared Services• Centralized customer service operations

• Serves 14 Asian Markets & 9 languages

• Complex processes – manual & electronic

• Scope of work –• Scope of work –

i. Order Management

ii. Accounts Receivables

iii. Reporting

• Zero tolerance for errors

5 Commandments for

Outsourcing Critical Services

Establish Robust and Sustainable Design

Create ‘One Team One Dream’ Culture2

1

Deliver & Sustain Executional Excellence

Develop Champions

Build Success stories via Business Transformation

5

4

3

Establish Robust & Sustainable Design

1

Customer Service Operation (CSO)Shared Services

Customers

End to End

Support

Customers

End to End

Support

Customers

Front End

Support(Head Quarter)

Customers

Front End

Support(Head Quarter)

Customers

Back End

Support(Shared Services)

Customers

Back End

Support(Shared Services)

New StructureOld Structure

(Head Quarter)(Head Quarter) (Shared Services)(Shared Services)

FRONT - ENDGrow Sales

Drive Customer satisfaction

BACK - ENDBACK - END

DriveOperational Excellence

Create One Team One Dream Culture

42

One Dream Culture“We are ONE team, in the eyes of customers”

We collaborate as ONE at all levelsthrough joint action plan and regular join-ups

We have fun as ONE through team-buildings and market visits

Deliver & Sustain Executional Excellence

33

Cost, Quality & Cost, Quality & Control

Our report cardOur report card

SLA Metrics

Develop Champions44

Through Rewards & Recognition,

internally & externally…..…..

• Winning the 5th Asian Shared Service Excellence

• Award For BEST NEW OUTSOURCED SERVICES

DELIVERY

• Winning TWO prestigious GBS Excellence awards 2010

• Award for Dare To Dream & President’s Choice award

Champions of the CSO shared services

1. Global PS Supply Chain Officer

2. Asia Group President

3. Asia Product Supply Vice President3. Asia Product Supply Vice President

4. Asia Finance Vice President

Create Success Stories via Business Transformation

25

Transformation

� Joint business transformation workshop between P&G and Infosys

� Leverage on LEAN & Six Sigma methodology

� Identify improvement areas that enables us to do

The Approach

� Identify improvement areas that enables us to do better, faster & differently, such as:

1. Resource optimization via Team re-structuring2. Automation of order acquisition & processing via order

upload3. End to end Credit management tool4. Loss elimination through process simplification &

standardization

5 Commandments for

Outsourcing Critical Services

Establish Robust and Sustainable Design

Create ‘One Team One Dream’ Culture2

1

Deliver & Sustain Executional Excellence

Develop Champions

Build Success stories via Business Transformation

5

4

3

20