Colgate-Palmolive is revamping its supply chain to manage rising costs, tariffs, and shifting consumer demand.
Colgate-Palmolive is stepping up supply chain adjustments to counter increasing tariffs, raw material costs, and changing consumer buying habits. The company’s latest initiative follows the completion of a two-year cost-cutting and supply chain streamlining program, finalised at the end of 2024.
CEO Noel Wallace, during the company’s Q2 earnings call, said the current environment presents challenges such as higher packaging costs and limited room to raise product prices due to weaker category inflation. He highlighted that consumer uncertainty has also pressured demand, with shoppers shifting between premium multipacks and lower-cost single units depending on spending capacity.
Wallace emphasised the company’s ability to leverage its global supply chain to remain resilient and responsive to these fluctuations. Colgate-Palmolive aims to balance agility with cost control while navigating unpredictable market conditions.
As part of its updated outlook, the company revised its 2025 tariff cost estimate to $75 million, down significantly from the $200 million projected in Q1, reflecting finalised tariff announcements through July.
Source: Supply Chain Dive
