Defining Innovation
We define innovation broadly, looking for sustainability opportunities at every touch-point along the path of our products.
Two innovations, multiple benefits
Laundry compaction
P&G seeks opportunities to innovate within every aspect of a product, from raw materials, manufacturing, customization and logistics to customers and consumers. Because of our integration and scale, innovations in one part of the cycle often spark innovations in other areas.
In 2007, we began to convert our North American liquid laundry detergent portfolio to a “2X” concentrated formulation. The following is an example of our multifaceted approach in action.
Product Concentration
Through scientific innovation, we developed a new formula that delivers more active ingredients in every drop, allowing consumers to use less.
One advance sparked many benefits.
- Less Water
- The new formulas save more than 500 million liters a year.
- Less Emissions
- The new products reduce CO2 emissions by more than 100,000 metric tons a year.
- Less Packaging
- These smaller products save more than 15,000 metric tons a year in packaging materials.
- Less Shipping
- The new size results in more than 40,000 fewer truck loads a year.
Inventory Efficiencies
Using new forecasting techniques, we managed the product inventory conversion at retail stores with a new level of precision to reduce waste.
- Precise prediction
- New modeling tools allowed us to better predict when retail customers would require new stock and manage the supply chain accordingly.
- Remnant runout
- This left very little old stock to manage through remnant sale and donations; unsalable product was managed down to an unprecedented low level.
- Waste reduction
- Accurate forecasting meant that virtually all the product we created was sold, resulting in a substantial reduction in unnecessary waste.
Today, we apply these tools and techniques to other significant product conversions.