Based on its most recent quarterly earnings, for the period
October – December 2012, it appears the cost cutting plan may be working as the
company reported revenue increased 3% to $22.2bn and doubled profits.
While North America is by far its largest geographic region
based on net revenues, the Latin America region is one in which the company is
working to grow. Based on Procter & Gamble’s 2012 annual report, this
region is responsible for 10% of the company’s total net revenue, approximately
$837m.
Recently, Procter & Gamble announced plans to open a
supply chain center for its Latin American operations in Costa Rica. The company
plans to invest over $5m in the facility which will consolidate 11 parts of the
supply chain including manufacturing plants, distribution centers and
administrative centers that are currently being managed in more than 25 Company
operations and in more than 10 Latin American countries.
The new center joins the financial services center and the
business transformation center of P&G which have been in operation in Costa
Rica since 1999 and 2008, respectively.
Tara Polanco, General Manager of P&G Costa Rica, stated
that “P&G’s renowned track record in innovation in the industry is not only
apparent through its products but also in the way it does business. Centralizing the administration of the supply
chain is something very innovative and will undoubtedly result in a competitive
advantage for P&G.”
Its close proximity to Panama bodes well for
Costa Rica as logistics providers such as FedEx, DHL and UPS have all
established operations in this small Central American country. Companies such
as Procter & Gamble, Intel, GE and Abbott have also allowed Costa Rica to
increase its focus on improving foreign trade through free trade agreements
with such countries as Canada, Chile, Mexico, the US, China, Singapore and the
European Union. Universities such as Georgia Tech University also are helping
in this movement. In 2009, Georgia Tech established a Supply Chain and
Logistics Center aimed at improving foreign trade by helping companies in Costa
Rica move products to markets faster and more efficiently.
