Reckitt Benckiser Supply Chain in Practice: Challenges and Recommendations.

Topics: Management, Supply chain management, Logistics Pages: 5 (1477 words) Published: December 7, 2013


1. Introduction
1.1 Company Background
Benckiser was founded by Johann A. Benckiser in 1823. It is a business derived from industrial chemicals. Over years of development through innovations and various acquisitions, Reckitt Benckiser (RB) is now a world leader in household, health and personal care. Today it is the global No. 1 or No. 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation – typically about one third of net revenue comes from innovations launched in the prior 3 years. It has a strong portfolio led by 19 global powerbrands which are: Finish, Lysol, Dettol, Vanish, Woolite, Durex, Calgon, Airwick, Harpic, Bang, Mortein, Veet, Nurofen, Clearasil, Strepsils Gaviscon, Mucinex, Scholl and French’s, and they account for 69% of net revenue. The company operates through eight business segments: fabric care, surface care, health and personal care, home care, dishwashing, pharmaceutical, food, and other household. More than 75% of net revenues in 2007 were generated by brands that are either leading in the market or ranked second in their markets. In the fabric treatment section, Vanish leads the fabric segment globally so does Calgon in the water softeners segment and Lysol and Harpic brands in lavatory care segment. Furthermore, Dettol, Veet and Strepsils are the number one brand in antiseptic personal care products, depilatory products and throat tablet segment respectively while Nurofen, an analgesic, ranks second in Europe. Also, Clearasil is ranked as the number two anti-acne treatment worldwide. The company's Air Wick is ranked second in the air care segment worldwide. This strong portfolio of brands significantly fuels the revenues and profitability of the company. In terms of management structure, it is organized in such a way that there are three areas in the world: Europe, which includes Eastern Europe and Turkey; the Americas—North America plus Australia and New Zealand, which are very similar markets; and are called the “developing markets,” the rest of Asia (excluding Australia and New Zealand), Africa and Latin America. Each of these areas has a head of business, and below them are regional directors who run the specific regions. They, in turn, work alongside a category development organization, which is responsible for making sure that brand strategies are developed and implemented, as well as for developing a pipeline of new products for these brands. They work with the marketing and R&D departments to make sure the right communications strategies in place

2. Supply Chain Management at RB
2.1. Overview

RB’s supply chain and logistics is a global perspective and has about 41 production facilities worldwide including countries from Europe to North America, Africa to New Zealand. The company has a wide range of wide-range policies and procedures to protect their supply chain, Code of Business Conduct, reputation and Manufacturing standard.

3. Supply Chain Improvement Initiatives of Reckitt Benckiser (RB) Management
According to the RB’s Annual Report and Financial Statements 2011, RB believes its culture and passion for its people (RB employees) are its greatest competitive advantage. The people are entrepreneurial, innovative, internationally diverse, dynamic and driven by a strong sense of ownership. RB continues to attract best management talents; retaining them by investing on the ‘performance oriented remuneration policy’ which paid managers for excellent performance. RB has 25 formal training modules for middle management and Top 400 international managers (T400). During 2011, the Group ran over 80 courses on these modules, training over 652 people. At RB, Management is international and is trained through rotation in international postings both in countries and in the Group’s central functions. Succession planning is a critical management discipline and is reviewed annually (at least) by the full Board and...

References: Charles, C., Bauer, P. and Bauer, M. J. (2001) E-Supply Chain. Berrett-Koehler Publishers, Inc, San Francisco, CA.
Kalakota, R. and Robinson, M. (2001) E-Business: Roadmap for Success. Addison-Wesley, Boston, Massachusetts, USA.
Lambert, D., Cooper, M. and Pagh, J. (1998) “Supply Chain Management: Implementation Issues and Research Opportunities,” The International Journal of Logistics Management, Vol. 9. No. 2, pp. 1-19
Our responsibility: How we will achieve it [online] Available at. http://www.rb.com/carbon20/how-we-will-achieve-it [Accessed 20 April 2012]
United Nations Global Impact (2010) Supply Chain Sustainability: A practical guide for continuous improvement. Published by UN Global Impact Compact Office,
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