In Procter & Gamble’s just-published annual report for its year to the end of June 2012, president and CEO Robert A. MacDonald underlines how sustainable thinking is now pervading all aspects of its global business.

In short, simply pursuing growth in all areas is making way for creating more from less.

“We’re simplifying the business by creating standard manufacturing platforms with common packages, formulas, materials, equipment and operational systems,” he explains. “This enables faster speed to market and concurrent product launches across regions at a lower cost. We’re moving from more than 500 manufacturing platforms as of two years ago to a target of about 150 by 2014. We think this will achieve savings worth around $500 million worldwide."
The company is also moving from large, single-category manufacturing plants to more localized, scaled multi-category facilities that enable it to lower cost by sharing the same infrastructure – utilities, roads, rail spurs – which are often up to 50% of the cost of a new plant, as well as lower transportation and delivery costs.
Product simplification also represents a big opportunity.