P&G cost saving money leads to outsourced marketing resources and a prize
The two companies won the award in the ‘Most Innovative’ category for the Outsourcing Center’s annual awards, recognizing some of the most outstanding performances in the outsourcing industry.
According to the Outsourcing Center, the award was given to the companies because of their collaboration on a commercial service program whereby Accenture manages P&G’s digital marketing campaigns, e-retailer content and virtual reality centers.
“This award is a testament to the teamwork between Accenture and P&G and the innovative approach and solutions delivered jointly by our two companies,” said Marco Ziegler, a managing director in Accenture’s Consumer Goods & Services practice and lead for Accenture’s work at P&G.
“This commercial services program is helping P&G realize greater agility and flexibility in the front office and enabling it to meet its changing business needs more effectively, drive improved productivity and innovation, accelerate the start-up of new services and realize lower IT costs.”
Ousourcing project management services
As well as realigning its business structure, streamlining its executive and management line up and initiating a number of cost saving programs, P&G has also outsourced a number of its business operations as part of moves to focus on its core business strategy to grow the business.
On top of assisting P&G on its digital marketing and virtual solutions, Accenture has been helping to deliver ‘Decision Cockpit’ and reporting management services across all of its businesses, as well as providing specific project management services that target speed of services to market as well as cost savings.
“As we continue to grow our capabilities, we’re seeking companies that can bring innovative solutions and help us deliver them at scale,” said Andy Walter, vice-president of P&G’s Global Business Services unit.
“P&G believes that our bundled agreement has strengthened our strategic relationship with Accenture and created a 'launchpad' for the delivery of distinctive new capabilities on a global scale."
Investors and market analysts believe that that a combination of P&G’s exposure to emerging markets together with the enormous cost saving and restructuring program is set to put the company back on track after a two year period of flat sales and declining profits.
Profits up, but beauty still suffering
For its most recent first quarter, ending March 31, P&G posted improved results, with profits bouncing back as cost savings have started to take effect.
The company said that net sales for the first quarter of the year were up 2 percent to $20.6bn, which represented an organic sales increase of 3 percent when taking in the negative impact of currency exchange rates.
Net income for the January-to-March quarter rose to $2.57bn, compared with net income of $2.41bn in the corresponding period last year, but the company’s mainstay beauty business division showed the most tame growth for the group as a whole.
