The new replenishment process resulted in substantially lower product acquisition costs
through truckload volume purchases, enabling lower retail pricing. Without increasing inventory
levels or stockouts, the retail chain was able to expand P&G's diaper SKUs in the stores. The
combination of lower prices, reduced stockouts, and expanded SKUs in the stores dramatically
increased P&G's diaper sales through this retailer's stores. This new process represented a major
change in channel ordering and logistics and established the basic principles of what eventually
became known as CRP (continuous replenishment program). This second trial demonstrated the
potential for logistics innovations to offer mutual benefits to retailers and manufacturers by
reducing channel costs and increasing consumer sales.