HOW GILLETTE CLEANED UP ITS SUPPLY CHAIN

SUBTITLE: IN 2002 GILLETTE KNEW IT HAD A PROBLEM. SERVICE LEVELS WERE LOW, SUPPLY MANAGEMENT WAS SPOTTY, AND CUSTOMERS WERE ANGRY. THE SOLUTION: REENGINEER THE ORGANIZATION BASED ON THE PREMISE THAT THE VALUE CHAIN BEGINS AND ENDS AT THE RETAILER'S SHELF. THE RESULTS TO DATE HAVE BEEN IMPRESSIVE -- CUSTOMER SERVICE LEVELS UP BY 10 PERCENT, INVENTORIES DOWN BY 25 PERCENT, COSTS CUT BY 3 PERCENT. HERE'S THE INSIDE STORY OF A REMARKABLE COMEBACK.