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demand triggers, such as point-of-sale information directly from a retailer's scanner. With electronic ordering for 99 percent of its U.S. customer base, P&G has access to actual sales data five to seven days after the sales occur. Searching for methods to identify this critical data faster, P&G is a founding sponsor of something called EPC - the Electronic Product Code - that is based upon Radio Frequency Identification (RFID) technology. Ultimately, EPCs will appear on pallets, cases, and individual consumer items, and in-store scanners will transmit information to a wireless sensor network; manufacturers will also know moment to moment when consumers have purchased items. The MIT Auto ID Center is developing EPCs with more than 50 sponsors, including P&G. Procter and Gamble is also running a pilot program in 50 retail stores for another kind of point-of-sale system, one which is nearly a commercial product. Through this program, the company is finding better information can indeed reduce the 11 percent out-of-stock number to 2 to 3 percent.
Changing the way it plans and manufactures goods. Instead of doing batch planning in its facilities once a day, P&G realized it could update the plan two or three times during the course of the day if it had real- or near real-time information, by working with its enterprise resource-planning supplier, SAP, to develop an adaptive planning model for this task. Currently, the company is 30 percent of t
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