Is PG's Supply Chain 3.0 Redefining Efficiency Through Automation?

Core Insights - Procter & Gamble (PG) is enhancing its supply chain through advanced analytics and AI-driven planning to improve operational efficiency and reduce disruptions [1][8] - The Supply Chain 3.0 initiative focuses on integrating automation and digital tools to boost productivity and cut costs, fundamentally transforming PG's response to consumer demand [2][4] Financial Performance - In Q2 fiscal 2026, PG's margins declined year over year, but productivity savings partially offset this decline, with gross margin benefiting from 160 basis points and operating margin from 270 basis points of productivity savings [3][8] - The Zacks Consensus Estimate for PG's fiscal 2026 and fiscal 2027 EPS reflects year-over-year growth of 2.2% and 4.5%, respectively, although estimates have decreased in the past 30 days [10][11] Competitive Landscape - Competitors like Colgate-Palmolive and Clorox are also focusing on enhancing operational efficiency through digital tools and streamlined organizational structures to navigate cost inflation and support strategic priorities [5][6] Valuation Metrics - PG trades at a forward price-to-earnings ratio of 20.87X, higher than the industry average of 18.44X, indicating a premium valuation compared to peers [9]