Effectiveness
And Efficiency
In Everything
Colgate’s focus on efficiency is a key driver for generating funds to invest in new product development and marketing activities, while still delivering strong profitability.
One way Colgate is generating significant savings is through business simplification, reducing the number of formulas, packaging, ingredients and sizes of our products. One example is dishwashing liquid, which has been relaunched across Europe using just one cost-efficient, environmentally friendly bottle design for six different Colgate brands. In total, the number of bottles used in the category in Europe was reduced from 21 to 14. In North America, the Company introduced a more concentrated dishwashing liquid formula and also reduced the number of bottle sizes used, resulting in significant savings.
A new process technology in Brazil is allowing Colgate to save more than $2 million annually on purchases of tallow, a key ingredient in bar soap production. Instead of buying high-quality tallow available only from a limited number of suppliers, Colgate developed the ability and capacity in-house to upgrade more widely available lower-cost tallow. As a result, Colgate’s high quality standards are maintained at a reduced cost. The process has been so successful, it is being considered by other geographies, as well as being explored for other ingredients.
China United States
Increasing Efficiency With State-Of-The-Art Plants
Colgate’s highly efficient toothbrush plant in Sanxiao, China, is increasing the flexibility and capacity of the Company’s global supply chain. The largest toothbrush factory in the world, the new plant produces 1.4 billion brushes per year and adheres to the highest standards of energy efficiency and environmental quality.