Kimberly-Clark’s drive to squeeze more efficiency from its supply chain is beginning to show through in both technology adoption and measurable productivity gains, as the consumer goods group moves through the middle stage of a five-year, $3 billion transformation programme launched in 2024.
According to the company, more than half of the initiative is now complete, with the strategy built around simplifying its value stream, optimising its network and expanding automation. T...
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hose changes are increasingly being tied to digital tools, including procurement software, artificial intelligence and internal training designed to make the supply chain more resilient and data-led.
In the first half of 2026, Kimberly-Clark completed a global roll-out of Coupa, an end-to-end procurement platform that the company says is now covering 90% of its suppliers. Michael Hsu, the chief executive, told investors on the group’s second-quarter earnings call that the system gives the company a single AI-enabled procurement environment with greater visibility over spend and stronger support for compliance and working capital management.
The roll-out is also being extended in practice. Kimberly-Clark’s supplier communications show the company has broadened Coupa to cover direct materials in mainland China and Hong Kong, with suppliers required to complete training before the system’s August 2026 go-live. The transition is being supported with short training videos, reference guides and follow-up question-and-answer sessions.
The company is also leaning on artificial intelligence inside its factories. Hsu said Kimberly-Clark began the year with a pilot of one manufacturing agent and is now scaling the technology across its network after seeing productivity improvements of 40% to 50% in knowledge-search tasks. These include routine but time-consuming activities such as locating best-practice documentation and retrieving information to inform decisions.
To support that shift, Kimberly-Clark has launched what it calls an IT Digital University, an academy-style programme covering 17 skill areas, including AI and data visualisation. The company says employees are assessed before and after training, and those who have completed the programme have recorded average skill growth of 60%.
The broader context is a company that has increasingly framed supply chain execution as a source of margin improvement and operational discipline. As Kimberly-Clark presses ahead with its productivity programme, the emphasis appears to be on building a more standardised, automated and digitally connected operating model rather than relying on isolated efficiency gains.
Source: Noah Wire Services
