Why and How ColgatePalmolive Uses the Principles of Supply Chain Management

This report identifies the important elements and structures of the Colgate-Palmolive Supply Chain Management system by evaluating the way the company chooses its suppliers and manages them. The project would also look at the production process employed by Colgate-Palmolive and the management and distribution channels. The importance of the end-user would also be examined in the paper.
Colgate Procurement System (2013) identifies that the company uses a uniform and fair system of taking tenders and supplier application from producers. The company decides what to buy on the basis of quality and price offered by a supplier. The supplier’s reliability, integrity, innovation, and commitment to continuous improvement is a basis for decision making (Colgate Procurement System, 2013).
Ethical standards are used to carry out the examination and evaluation of different suppliers. This includes a number of standards and expectations that must be met by each and every supplier in the list of possible contenders. Once this is done, there are some guidelines that are used by the Global Procurement Group to authorize a supplier. The Global Procurement Group of Colgate-Palmolive is made up of purchasing and logistics professionals from the regional units of the company. They use teamwork to guide their efforts. The group takes up tenders and quotes from suppliers around the world who fit some basic requirements. The quotes are presented to the Group and they examine and critique it. The company uses various criteria including positive discrimination techniques like identifying minority-owned suppliers and women-owned businesses. The group uses ethical business practices and high integrity levels to set goals and attain them. The company uses the Supplier Code of Conduct to guide the ethical conduct of procurement and they ensure that the best suppliers are chosen.