ConAgra Transforms Supply Chain with Inventory Optimization

ConAgra Foods, a top U.S. food producer, has been on a supply chain transformation journey over the past couple of years. Along its path toward sustainable working capital reductions and a demand-driven supply chain, ConAgra has found a ways to leveraging Enterprise Inventory Optimization (EIO) to its fullest potential.

 

On April 28, 2011, during a CGT Web event, Asis Sengupta, Sr. Director -- Supply Chain Optimization at ConAgra, discussed how the company transformed supply chain planning processes through the use of SmartOps EIO. Here are some highlights from the event:

 

-- Sengupta explained the key business challenges that made multi-echelon inventory optimization a necessity for ConAgra. He also took attendees through the EIO selection, implementation and the post implementation processes over the years, and revealed alternative uses for EIO found along the way, like scenario evaluations and inventory impact calculations. “We are just midway in our journey, and the next few years are critical for us to progress further in inventory management,” he said. Sengupta ended with some suggestions for mastering this essential application: Master data cleansing and maintenance; end-to-end interfacing with a facility to manage inputs and monitor results, and resourcing a research and implementation team adequately. “Inventory optimization is a small, but important, element supporting the strategic supply chain and working capital initiatives of ConAgra as well as in our relentless drive toward the company’s mission of achieving sustainable profitable growth and making the food you love,” he closed.

 

-- Dr. Mehmet Demirci, supply chain sales engineer for SmartOps, joined the conversation to share further insight into the common business problems and best practices that consumer goods companies face in the enterprise supply chain and inventory planning. Common supply chain problems include scale and complexity in SKU-locations, shortening product lifecycles, and high service level goals to stay competitive. He also touched on some trends such as customer spending behavior shifts, private label growth and the fight for shelf space. Demirci explained some best practices to help alleviate some of the strains from these problems and trends. “Consumer goods companies need supply chain planning processes that right size inventory and capture more sales and profitability.”

 

To listen to this event in its entirety, click here.