Serving Scotland: Supply Chain Operations in a European market Frank Arendt Glasgow, September 2012

P&G Global in Brief 2 Number of brands300 Countries with P&G Site80 Number of employees 127,000 Net Sales$80 billions Manufacturing Sites140 Warehouses300 (rounded numbers)

3 3 Storage Locations for FP50 Customization Centers >60 km / Year >250m Liters Diesel / Year >70m P&G Logistics in Western Europe

4 50 Leadership Brands

P&G Volume to Scotland Main Sources: England – 85% France – 11% Belgium – 4% P&G average journey from UK source site >400km 50+ trade lanes, 1 rail enabled Mode used Road 93% Rail7% 150t CO2 avoided P&G Target 30% road km avoidance

Transport In Scotland Road still dominates Net importer of goods, imbalance of flows – Approx. 25% km travelled empty Volumes – Retail increasing – Manufacturing reducing

P&G Sustainability Engaged with ECR and Heriot Watt University Starfish Initiative

Collaborative Concepts Co-modality CO3

P&G Transport In Scotland Collaborating – With major retailers – Packaging suppliers – It’s not easy….but worthwhile Challenges – Volume volatility Matching flows days of week and times of day – Rail Requires wider on time arrival tolerances Opportunities – Extended Trailers Reduce trucks to Scotland Requires round trip Next Steps – Maintain dialogue – Combine flows for improved network design