Gillette Distribution Case Note

Gillette manufactures a relatively small number of distinct types of disposable razor but when these are packaged to account for all the languages and promotional activities of the European market, there are almost a thousand varieties. In order to improve its inventory control and improve its market response, Gillette decided to adopt a policy of packaging postponement. This would mean that a central packaging facility would be set up in Europe to receive deliveries of finished, but unpackaged razors from the European factories. It would then call off razors as required for packaging to meet the demands of its regional distribution networks. The objective therefore was to establish central facilities to manage the storage and picking of razors both before and after packaging in the adjacent packaging centre.

Gillet Distribution Case Note