Temple U. Professor Misty Blessley looks at an interesting supply chain issue.
Supply and demand markets are always evolving, requiring firms to regularly assess and adjust their operations and supply chains to maintain efficiency. Food manufacturers like Campbell Soup Company are adapting by closing some facilities, opening new ones, and expanding existing plants to optimize production.
Campbell, known for its iconic canned soup, is investing $230 million to enhance its operations and supply chains. This investment aims to drive growth while fostering agility, flexibility, and cost-effectiveness. Campbell Soup Company also includes brands such as Pepperidge Farm, V8, and Swanson and has grown to be one of the largest processed food companies in the U.S. In a recent Supply Chain Dive article, Campbell highlighted the company’s ongoing efforts evaluate optimization opportunities to build its supply chain of the future.
Supply chains can be complex and non-linear, as illustrated in your Heizer/Render/Munson text in Figure 11.1. Due to Campbell’s diverse product range, it manages multiple supply chains.
Campbell is closing its Pacific brand organic soup plant due to aging leased buildings that are unsuitable to meet future demand. Consequently, soup and broth production will be relocated, and plant-based beverage production will be transferred to co-manufacturers. Additional changes to the supply chain network aimed at increasing plant efficiency at select U.S. plants include increasing aseptic (sterile canning process) soup production, adding potato chip kettles, and expanding tortilla chip capacity.
Beyond enhancing plant efficiency, Campbell plans to boost capacity for some of its most popular brands. The production of Late July brand tortilla chips will be expanded, and the company will offer new Goldfish varieties, leveraging Goldfish as the fastest-growing cracker brand in the category.
Classroom discussion questions:
1. Why is a SWOT analysis integral for Campbell to build its “supply chain of the future”?
2. Campbell emphasizes competitiveness (“We are growth-minded, take bold actions, move fast, and play to win”) and creativity (“We innovate and find solutions to continuously improve”) as two of its five core values. How do these values manifest in their redesigned operational footprint?
