Dive Brief:
- Church & Dwight will target its investments on growth and driving efficiency through automation and technology during the second half of the year, the company announced during its Q2 2023 earnings call last week, for the period ending June 30.
- “One of the investments we’re making right now with automation and technology is, we have 20 or 30 projects that represent thousands and thousands of hours that we’re automating,” said Rick Dierker, EVP, CFO and head of business operations, according to a Seeking Alpha transcript. “That way our people have more capacity to do other work, which is really impactful as we build the company.”
- The Arm & Hammer manufacturer is also looking at its ERP stack to streamline operations. In 2022, the company installed an ERP system in China to facilitate direct selling and expanded local manufacturing. Now, ERP investment efforts are geared towards its global market group, Dierker said.
Dive Insight:
Church & Dwight, well known for its health and household brands such as Batiste, OxiClean and Nair, experienced net sales growth of 9.7% in the second quarter, exceeding its outlook with stronger-than-expected gross margin expansion as well. Fueled by the strong quarter, the company's betting on tech to increase efficiency.
The company is also weighing emerging tech implementations.
“We, like so many other companies out there, are now looking to AI and chat and [asking] how can we leverage that to make everybody more productive,” CEO Matt Farrell said during the earnings call.
Church & Dwight isn't alone in its pursuit of efficiency through IT.
The Clorox Company plans to implement the first region of its new ERP system later this year, CEO Linda Rendle said during the company’s earnings call in May. The company is currently in year two of a five-year, $500-million investment push into transformative technologies and processes to accelerate digital transformation.
The majority of the investment — 70% — is expected to fuel ERP implementation, with the remaining funds supporting the adoption of complementary technologies, according to the company.
"Over the course of the year, we've been relentlessly focused on driving top-line growth while rebuilding margins in the midst of a challenging operating environment as we continue to advance our long-term strategy to invest in our advantaged portfolio of superior brands, advance our digital transformation and streamline our operating model,” Rendle said in an announcement Tuesday following the company’s Q4 2023 earnings call.
