Campbell Soup Company | Online Assignment Help

Discuss the supply chain drivers at CampbellSoup Company. Comment on its supply chain metric performances.’

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According to Chopra and Meindl (2015), the primary supply chain drivers include three logistical factors: facilities, inventory and transportation, and three cross-functional drivers: information, sourcing, and pricing. With these six drivers, the supply chain is a complex system that needs to be handled as a whole instead of focusing on a single one at a time. In the given case, Campbell outperformed other brands on different Supply Chain metrics, coming first in the Supply Chain Index ranking in the period of 2006-2012. The success is understandable because firstly, Campbell took a holistic approach when dealing with SP management. It tried to improve the entire SP system with a comprehensive set of programs such as Operation Excellence, Network Optimization, Product and Process Simplification, Visibility/Orchestration of the supply chain network. Similarly, its cost savings program showed a structured cross-functional approach. Accordingly, it broke goals across all the significant areas including Manufacturing, Logistic/Network Optimization and Ingredients/Packaging (Cecere, 2014).
Furthermore, the effectiveness of supply chain management depends on the balance between responsiveness and efficiency of all of the six factors. Campbell’s cost savings program showed that the company put a lot of effort in dealing with the trade-off between the two concepts and work toward achieving the balance that best meets the needs of the company’s competitive strategy. To illustrate, while aiming at a substantial cost savings performance, it always tried to ensure the good quality and customer solutions to maintain growth (Cecere, 2014). Another example is that Campbell recently decided to wind down manufacturing at its Toronto facility to deal with the excess capacity in Campbell’s North American due to significant productivity improvements and volume declines of canned soup in this area (Anon, 2018). The firm also announced many initiatives to increase efficiencies such as investing in a new system to automate packing operations in Australia or shifting production of ready-to-serve soups from Paris, Texas to its plants in Napoleon, Ohio, and Maxton. These are expected to result in an elimination of 770 positions (Campbell, 2011).

Last but not least, Campbell achieved high ranks across Supply Chain metrics because it perceived the supply chain as a complex system which requires collaborations between all sectors of the company to ensure the desired improvement (Yunus & Tadisina, 2016). It made a significant emphasis on the role of the SP leadership team, cross-functional communication and took in to account the corporate cultural factors. The firm aimed to create the best mix of people with the right skills, experiences and innovative thinkings to lead the change. It also tried to understand the organizational culture and tailored their approach accordingly to prevent any mismatches, resistance and increase the chance of success (Cecere, 2014).

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