Procter & Gamble Wins 2009 Supply Chain Distinction Award for Implementation of Terra Technology’s Demand Sensing

Business Wire, June 23, 2009

Intelligent Daily Forecasting project decreases inventory while improving customer service levels

NORWALK, Conn. -- The Procter & Gamble Company (NYSE: PG) has won the Supply Chain Distinction Award in the ‘Operational Excellence’ category for their global implementation of Terra Technology’s Demand Sensing (DS). The Intelligent Daily Forecasting (IDF) project has enabled P&G to increase forecast accuracy, decrease inventory and improve supply chain performance. The award was presented on 9 June at the 11th Annual European Supply Chain & Logistics Summit in Düsseldorf, Germany.

"In the current economic climate -- with ever increasing volatility in demand -- it is crucial to extend the supply chain visibility as close to our customers as possible," explains Nils Mueller, Global IDF Initiative Manager for Procter & Gamble. “Speed today is of the essence. Only those companies that can respond quickly to customer and consumer needs will stay ahead. Terra’s software provides P&G the ability to stay ahead of shifts in consumer demand.”

Procter & Gamble implemented Terra Technology’s DS to improve short-term forecast accuracy, enabling P&G to reduce inventory and facilitate supply and demand collaboration. DS analyzes daily streams of demand data, using pattern recognition mathematics to determine what available demand information is relevant and creating a more accurate forecast. The enterprise-wide roll-out has reduced forecast error by up to 45 percent for P&G. In the next phase of the project, P&G is focusing on integrating additional customer demand signals into the planning process by implementing Terra’s Multi-Enterprise Demand Sensing, which is expected to further improve forecast accuracy in order to achieve superior customer service.

Robert F. Byrne, President and CEO of Terra Technology, said, “Procter & Gamble continues to be recognized as a global supply chain leader, securing a spot as one of the top five supply chains in the world by AMR Research for five consecutive years. P&G maintains its supply chain advantage by investing in innovative technologies to improve efficiency and decrease costs.”

About Procter & Gamble

Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®, Pantene®, Mach3®, Bounty®, Dawn®, Gain®, Pringles®, Charmin®, Downy®, Lenor®, Iams®, Crest®, Oral-B®, Actonel®, Duracell®, Olay®, Head & Shoulders®, Wella®, Gillette®, Braun® and Fusion®. The P&G community includes approximately 138,000 employees working in over 80 countries worldwide. Please visit http://www.pg.com for the latest news and in-depth information about P&G and its brands.

About Terra Technology

Terra Technology is the leading provider of demand sensing and inventory optimization software for consumer goods companies. Terra’s solutions incorporate demand signals from throughout the supply chain including retailer data, reducing forecast error by up to 50 percent and inventory by up to 20 percent. More accurate forecasts and inventory targets improve customer service, lower inventory, decrease unplanned changeovers and reduce costs. Terra’s customers include Campbell Soup, Kraft Foods, Procter & Gamble, Unilever and Ventura Foods. For more information, please visit www.terratechnology.com or call 1 203 847 4007.