Campbell's Soup Co.

Campbell’s Soup Saved $53 Million

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 in 2006 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

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