Campbell's Soup Co.

Campbell’s Soup is a manufacturer of food products including soups, sauces, and beverages. These products are sold to retail grocers and food service companies. The soup division operates 4 North America manufacturing locations and the company implemented SAP ECC with the following business objectives: improved customer service levels, optimize inventory levels, improve production schedule attainment, improve operational effectiveness and reducing operating costs.

CHALLENGES

• Rising raw materials and finished goods inventory
• MRP and its support of purchasing automation not understood
• Inventory strategies and master data not aligned
• Excessive order expediting
• Frustrated users and excessive manual processes
• Customer service levels were maintained with excessive amounts of inventory
• Lack of trust in the system leading to ineffective use of MRP generated production planned orders and purchasing requisitions
• SAP reporting functionality not being utilized to support business and process performance KPI’s
• New corporate materials management group created in 2016 with no common materials management process
  

SOLUTIONS

• Supply Chain transformation utilizing Reveal’s oVo® methodology
• Focused on improving service levels, optimizing inventory, capacity and production planning and data visibility
• Education for buyers, planners, schedulers, shop floor and management on existing SAP tools
• Education on managing master data to manage the business
• Established ownership and accountability of master data and aligning MRP strategies
• Focus on key materials using standard SAP tools to achieve the highest value return in the shortest possible time
• One-on-one sessions with management and executives to drive management decisions using SAP
• Established Process Aligned Teams (PATs) to address daily supply chain challenges identified through the oVo® process
• Set KPI’s and aligning with strategic business performance measures

BENEFITS

• Saved $40 million in one year on SCM operations and $53 million since start of project
• Inventory reduction of over 39%
• Inventory turns improvement of 38%
• Optimized 100% of average value of inventory
• Improved capacity and material availability accuracy
• Improved schedule attainment
• Improvement in Operational Service Levels
• Reduced Red Lights (overdue supply chain elements) by 98%
• Reduced Exception Messages by 95%
• Simplification and standardization of procurement processes
• Educated and empowered users and management team
• Aligned KPI’s to business objectives