Campbell Soup Company: A Leader in Continous Replenichment Innovation

1. Campbell Soup Company:A Leader in Continous Replenichment Innovation  Professor: Lyu Ph.D DonnaR76974010 MiraR76974028 Lee R38971109

2. Company Background Campbell Soup Company Also known as Campbell's More than 100 years A well-known American producer of canned soups and related products One of the largest branded product manufacturers in the U.S.

3. Company Background Campbell's products are sold in 120 countries around the world Flagship product line, the Campbell’s red-and-white cans of condensed soups, provided its central focus

4. Company Background A leader in efforts to improve the efficiency of the U.S. grocery distribution channels, the process through which products and information flow Maintained excellent relationships with its retailer and wholesaler customers Committed to improving channel efficiency and effectiveness in ways that would prove mutually beneficial for itself and its customers

5. Company Background Improvement required an innovative approach to channel restructuring, one that would allow customers a choice of how quickly to change and yet provide sufficient incentives for assisting Campbell in eliminating unnecessary costs

6. Continuous product replenishment (CPR) • Continuous product replenishment (CPR) was an important means of improving channel efficiency. • Campbell was innovators in continuous replenishment, introducing this new ordering process in 1991. • CPR offered significant savings for retailers and wholesalers adopting it.

7. Why? • The combination of promotional pricing and forward buying effectively decoupled actual consumer demand with manufacturer sales to retailer and wholesaler customers. • Artificial peaks in demand caused by forward buying during product promotions created significant production inefficiencies. • Forward buying as an important source of profits, but increased customer’s storage and handling costs and increased Campbell’s production, storage, and logistics costs.

8. Benefits from CPR • Campbell • Reduce production costs • Reduce inventory levels • Reduce logistics costs • Customers • Reduce inventory • Levels shipping / receipts (ex: less overtime) • Reduced deductions • Increased sales • No forward buy incentive / Lower purchase price • Reduced order / delivery

9. Uni-president • Background: • Founded in 1967 • Authorized Capital: 48 billions (NT$) • The largest food & beverage company in Taiwan • Mission statement • Everyone’s all-time favorite symphony of food • Sub-groups • Dairy and Beverage • General and Instant food • Consumer health • Logistic: founded in 1996

10. Logistic Sub-conglomerate • Logistic group • Built in 1996 • Comprised of 51 wholesalers and 133 retailers • Distribution network with 30,000 clients • 6 professional logistic center • 7-ELEVEn • Model • Advanced tech system • POS • CAPS (Computer Aided Picking System) • Integrity, Diligence and Innovation for Progress • Food and chilly product: deliver 1 or 2 times per day

11. UPLS and CPR • Advantage: • Logistic capability • Distribution center • Technology-based system • Vertical integration • Lower purchase price and inventory level • Long-term relationship with supply chain partner