How Clorox Continued to Reimagine Work in 2024

Rhea-AI Summary

Clorox reported significant achievements in FY2024, including the implementation of a streamlined operating model expected to generate $100M in annual cost savings. The company achieved an 82% teammate engagement score, surpassing Fortune 500 and industry benchmarks. Notable accomplishments include spending $202.8M with diverse suppliers (up $1.5M from FY2023), achieving pay equity for nonproduction teammates globally, and improving workplace safety with a 14.5% reduction in incident rates.

The company continues its $500 million digital transformation investment over five years, implementing a new ERP system starting in Canada and Global Finance, with U.S. implementation planned for FY2026. Clorox also launched Brand & Marketing University for technical upskilling and enhanced employee health benefits, focusing on preventive care initiatives.

Positive

• Expected $100M in annual cost savings from streamlined operating model
• 82% teammate engagement score, above industry benchmarks
• $202.8M spent with diverse suppliers, increasing by $1.5M YoY
• 14.5% improvement in workplace safety incident rate
• $500M investment in digital transformation showing progress with ERP implementation

Negative

• None.

Insights

Financial Analyst

The implementation of Clorox's streamlined operating model stands out as the most significant financial development, targeting $100M in annual cost savings. This operational efficiency initiative, combined with the $500M investment in digital transformation, positions the company for improved margins and enhanced operational capabilities.

The company's diverse supplier spending of $202.8M in FY2024, while only showing a modest $1.5M increase from FY2023, demonstrates steady commitment to supply chain diversity. The 82% employee engagement score, surpassing Fortune 500 benchmarks, suggests strong organizational health that typically correlates with better productivity and reduced turnover costs.

The ERP implementation, scheduled for U.S. rollout in FY2026, represents a strategic investment in operational infrastructure that should drive long-term cost efficiencies and improved decision-making capabilities through data centralization. This technological upgrade is important for maintaining competitive advantage in the consumer goods sector.

Operations Management Expert

The 14.5% improvement in recordable incident rate to 0.47 is remarkably strong for a manufacturing operation, indicating excellent safety protocols and risk management. This metric not only reduces potential liability costs but also typically correlates with higher operational efficiency and lower insurance premiums.

The streamlined operating model implementation is particularly noteworthy for its comprehensive approach - removing decision-making layers while centralizing capabilities for dynamic deployment. This structural change allows for faster market responsiveness and improved resource allocation, which is important in the fast-moving consumer goods sector.

The new ERP system's phased implementation, starting with Canada and Global Finance, represents a methodical approach to digital transformation. This careful rollout strategy minimizes operational disruption risks while building foundation for data-driven operations. The decision to centralize previously fragmented data systems should significantly enhance supply chain visibility and operational agility.

NORTHAMPTON, MA / ACCESSWIRE / December 30, 2024 / The Clorox Companie continues to foster bolder ways of working that simplify operations and leverage technology to empower today's workforce, all while building on our strong foundation of inclusion and diversity to attract future generations of talent.

FY24 HIGHLIGHTS

• Completed implementation of our streamlined operating model, leading to approximately $100M in expected ongoing cost savings annually, margin improvements, new capabilities and the ability to further invest in business growth.

• Recorded a teammate engagement score of 82%, which reflects continued pride in Clorox as a great place to work. This achievement is above the 50th percentile for both Fortune 500 and industry benchmarks.^D11

• Continued to advance our work with suppliers who reflect the increasingly diverse consumers of our products, spending $202.8M with diverse suppliers in fiscal year 2024 - increasing by $1.5M from fiscal year 2023.^D13

• Achieved pay equity for nonproduction teammates for gender globally and race and ethnicity in the U.S.^*

• Improved our recordable incident rate by 14.5% to 0.47, which is significantly lower than the average for goods-producing manufacturing companies, through enhanced teammate involvement and incident management protocols.^D1

_{^* There are no statistically significant differences (at a confidence level of 95%) in pay by gender globally and race/ ethnicity in the U.S., accounting for relevant factors such as grade level, location and experience.}

I see the tremendous passion and commitment to keep each other safe - not only through best practices, but also through our culture. Making thoughtful decisions every minute of every shift is what sets Clorox apart."

Lalo Calvo
Fairfield Process Department Associate

ELEVATED RESOURCE PLANNING

Fiscal year 2024 marked the third year of a more than $500 million investment in technologies and processes to accelerate digital transformation across the company over a five-year period. This element of our IGNITE strategy continues to drive new capabilities and improve ways of working across Clorox.

This year we began deploying our highly anticipated enterprise resource planning, or ERP, tool to unlock the potential of a true data-driven culture. The new ERP will modernize the backbone of our supply chain and finance capabilities by shifting them to a more integrated environment. Data that was previously fragmented across systems, geographies, functions and business units will now be centralized, offering immediate transparency and more strategic decision-making. We successfully completed the first wave of our new ERP implementation in Canada and Global Finance and are poised to launch in the U.S. in fiscal year 2026, further improving our agility and ability to grow and operate more efficiently over the long term.

EMPOWERING TEAMMATES TO THRIVE

An engaged and motivated workforce is essential to Clorox's success, which is why we continue to invest in our teammates' personal and professional well-being. This year we launched a new technical upskilling curriculum called Brand & Marketing University, which offers a blended learning approach and end-to-end training to develop the expertise of core functional teams.

We are deeply committed to offering competitive and inclusive benefits that support the total well-being of our employees globally. We understand that a healthy workforce is a productive workforce, and as part of our dedication to this principle, we have continued to enhance the utilization of preventive screenings within our U.S. population. Our initiatives include comprehensive education on the importance of early detection and streamlined access to various health screenings. These efforts have yielded impressive results, with a notable increase in our screening utilization rate that surpasses our industry benchmark. By prioritizing preventive care, we are not only fostering a healthier work environment but also empowering our employees to take proactive steps toward their long-term health.

MORE CONSUMER OBSESSED, FASTER AND LEANER

This year marked the full implementation of our streamlined operating model. We've put our brands closer to the end consumer and are enabling our businesses to make faster decisions with a more consumer-obsessed mindset. We are also further embedding ESG into our business-unit operations and modernizing our capabilities to yield better business outcomes.

We have taken steps to integrate end-to-end across business functions, remove layers for more agile decision-making and centralize many capabilities that can be dynamically deployed into our business units. This is boosting effectiveness and efficiency while enabling our business units to more deeply focus on our consumers and more quickly deliver on our business objectives. These strategic capabilities are essential to becoming a faster, leaner and higher-growth company for the future.

IDEA

Building a diverse workplace where every person can feel respected, valued and fully able to participate in our Clorox community in the years ahead means paving pathways for inclusion, diversity, equity and allyship - what we like to call IDEA.

PUTTING ALLYSHIP INTO ACTION

Allyship is a core part of our IDEA journey, providing an actionable framework for teammates to better understand their role in creating a more inclusive workplace in which teammates can do their best work and help meet the diverse needs of the consumers we serve globally. We focus on four behaviors teammates can use to put allyship into practice: Be Curious, Seek to Understand, Show Empathy and Act Courageously.

Through enterprise-wide programming - including our annual IDEAcon event - business unit and functional integration and training, we're taking steps to ensure each teammate can play an active role in shaping a culture of allyship.

Our 13 employee resource groups are critical to how we bring allyship into our everyday lives. By celebrating our diverse culture, nurturing professional development and giving back to communities through volunteering, these internal networks extend IDEA's impact to all teammates and empower everyone to reach beyond their own lived experiences.

Learn more about Clorox's broader social impact efforts in its full 2024 Annual Report.

View additional multimedia and more ESG storytelling from The Clorox Company on 3blmedia.com.

Contact Info:
Spokesperson: The Clorox Company
Website: https://www.3blmedia.com/profiles/clorox-company
Email: info@3blmedia.com

SOURCE: The Clorox Company

View the original press release on accesswire.com

FAQ

What cost savings will Clorox's new operating model generate in 2024?

Clorox's streamlined operating model is expected to generate approximately $100M in ongoing annual cost savings, along with margin improvements and new capabilities for business growth.

How much did Clorox invest in digital transformation?

Clorox is investing more than $500 million over a five-year period in technologies and processes for digital transformation across the company.

What was Clorox's employee engagement score in 2024?

Clorox achieved an 82% teammate engagement score in 2024, performing above the 50th percentile for both Fortune 500 and industry benchmarks.

How much did Clorox spend with diverse suppliers in FY2024?

Clorox spent $202.8M with diverse suppliers in fiscal year 2024, representing a $1.5M increase from fiscal year 2023.

When will Clorox implement its new ERP system in the US?

Clorox plans to launch its new ERP system implementation in the United States in fiscal year 2026, following successful implementation in Canada and Global Finance.