During times of crisis, people around the world, are depending on our trusted brands to help them clean, take care of their personal health and hygiene, and create healthy homes for their families.
Our external business partners make it possible to make, pack, and ship the products consumers are counting on, maximizing our production and distribution capacity.
Cultivating a robust and diverse supplier network helps us continue to serve consumers together, and it’s a big way we support other businesses. Our global network of more than 60,000 suppliers, both large and small, is critical to our ability to deliver in this time of need. Just as importantly, we depend on diverse-owned businesses, spending $2 billion per year with companies owned by ethnic minorities, women, LGBT+, people with disabilities and Veterans.
“Supporting our suppliers through key challenges has long been a part of how P&G has operated,” said Ana Elena Marziano, Chief Purchasing Officer. “As much as P&G consumers trust and depend upon P&G, we trust and depend upon our network of suppliers. From raw materials, packaging and transporting products to store shelves…to the services that support our marketing, keep our facilities running, and provide IT support, we are thankful for our suppliers’ partnership as we take on this challenge together.”
We also partner with our suppliers so they can operate their businesses more sustainably. Since 2013, we have operated an industry-leading Supply Chain Financing (SCF) program that leverages P&G’s strong credit rating to provide our suppliers with significant financial and operational benefits. Through P&G’s SCF Program, P&G extends our credit to provide financing for our suppliers to help them meet their immediate obligations and operate more efficiently — enabling them to receive their payments in as little as five days. This also helps ensure our partners can better meet their individual needs — from capital investments to payroll expenses. Over the past seven years, this program has generated more than $4 billion of incremental cash flow for our suppliers. In this time of uncertainty, this program is more important than ever.
In addition to our SCF program, P&G encourages our suppliers to accept digital payment methods wherever possible. And we’re working proactively with suppliers who may be experiencing challenges to address their unique needs.
As ever, all of our engagement with our suppliers is consistent with P&G’s Purpose, Values, and Principles, particularly in these challenging times. We cannot predict how and when this crisis will end, but together with our suppliers, we’re committed to being part of the solution.