Is Innovation Your Next Game-Changer?

Join the supply chain conversation at Think Supply ChainThe bold headline on the P&G site reads “Connect+Develop.” If you haven’t been there, you need to go. The site is designed to attract partners with whom P&G can collaborate to deliver innovative solutions to the marketplace. It is an interesting approach to attracting partners: “Got a great idea to help better meet people’s needs? Come to us first!” According to the site, the thought process is simple: “Times have changed, and the world is more connected. In the areas in which we do business, there are millions of scientists, engineers, and other companies globally. Why not collaborate with them?”

P&G recognizes that the way we do business today is vastly different than it used to be. Innovation used to happen within a company. Now, firms are working together to innovate across supply chains. A particularly interesting story on the site explains how the Tide Pods were developed.

Tide Pods are individually packaged units of laundry detergent. They are genius, if you, like me, have a tendency to put too much soap in your high efficiency washer (resulting in epic overflow). You just toss the Tide Pod into the washer, the coating dissolves, and the detergent is dispensed. Others must agree because, according to P&G “Tide Pods is on track to becoming a $500 million dollar brand in its first year … while still only available in one market.”

P&G collaborated with a long-term supplier, MonSol in Indiana, to design and develop the pods. While they had worked on similar projects in the past, producing this product was more challenging because, “three different cleaning solutions are encased in separate chambers in each pac, all of which need to remain separate until fully immersed in water. Additionally, the film surrounding the cleaning solutions had to be designed to dissolve in a range of water temperatures, from hot to cold.”

P&G and MonSol each have special competencies that they bring to the table when working together. Each organization trusts the other based on its unique competencies and the relationship they have built over the years. Taking the attitude that they were one team, P&G and MonSol professionals worked together until they got it right. So right, in fact, that P&G recognized MonSol with its 2012 C+D Partner of the Year award.

Trust and collaboration are important not only to fostering innovation, but to creating high-performing supply chains. Yet many firms continue to struggle with the creation of trust-based relationships. So I wonder, what gets in the way?