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

Connect

Discover where and when to connect with Reveal at upcoming webinars and industry events.

Gartner Supply Chain Symposium Xpo 2021

Jun 13, 2022
Jun 15, 2022
Orlando, FL
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MasterClass SAP Supply Chain Bootcamp - Live

Feb 2, 2022
Feb 4, 2022
Talking Stick Resort, Scottsdale AZ
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Dec 13, 2021
Dec 15, 2021
8:30AM - 12:30PM CST

MasterClass SAP Supply Chain Bootcamp - Virtual

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