Presented By:Presented By:

Whitney Marrett, Cody Joss, Whitney Marrett, Cody Joss,

Ashley Williams, Thomas O’ConnorAshley Williams, Thomas O’Connor

ConAgra’s MissionConAgra’s Mission

Customers will win with more Customers will win with more frequent deliveries for less inventory, frequent deliveries for less inventory, allowing them to turn inventory allowing them to turn inventory faster. faster.

Supply Chain VisionSupply Chain Vision

““TO BE THE BEST TO BE THE BEST SUPPLY CHAIN IN SUPPLY CHAIN IN OUR INDUSTRY”OUR INDUSTRY”

Dry – Complete 11/25/04

Temp Controlled – Late 2005

Consolidating Over 100 points of distribution to Consolidating Over 100 points of distribution to

15 Integrated Mixing Centers15 Integrated Mixing Centers

Benefits Lower Cost Better Service Up to date order information

Supply ChainSupply Chain

Transportation and Warehousing Transportation and Warehousing Operations Operations

Third-party logistics (3PL) providersThird-party logistics (3PL) providersIn the process of developing a In the process of developing a temperature control distribution network temperature control distribution network Constructs new facilities and partners up Constructs new facilities and partners up with 3PLs who can provide labor and on-with 3PLs who can provide labor and on-site management so they can provide their site management so they can provide their customers with the ability to place a single customers with the ability to place a single order which will take them through a order which will take them through a single delivery — with a single invoice — single delivery — with a single invoice — by means of a common distribution by means of a common distribution network. network.

Operations ManifestoOperations ManifestoRecently developed strategy committing Recently developed strategy committing ConAgra to improving Operational efficiencyConAgra to improving Operational efficiencyIdentifying savings opportunities in every Identifying savings opportunities in every aspect of their supply chainaspect of their supply chainEfficiently producing the right products with Efficiently producing the right products with the right quality requirementsthe right quality requirementsImproving “logistics Network”- transitioning Improving “logistics Network”- transitioning from hundreds of storage facilities across from hundreds of storage facilities across America to 14 state-of-the-art geographically America to 14 state-of-the-art geographically designed mixing centersdesigned mixing centers

Supply Chain ObjectivesSupply Chain Objectives• PROVIDE CONSISTENT QUALITY AND TIMELY PROVIDE CONSISTENT QUALITY AND TIMELY

SERVICE AT THE LOWEST DELIVERED COST FOR SERVICE AT THE LOWEST DELIVERED COST FOR THE QUALITY AND THE QUALITY AND

QUANTITY SPECIFIEDQUANTITY SPECIFIED

• MANAGE COMPLETE SUPPLY SYSTEM FROM FIELD MANAGE COMPLETE SUPPLY SYSTEM FROM FIELD OR PROCUREMENT TO CUSTOMER OR OR PROCUREMENT TO CUSTOMER OR CONSUMER. KEEP IT SIMPLE.CONSUMER. KEEP IT SIMPLE.

How is this accomplished?How is this accomplished?1.1. OPEN COMMUNICATION AT ALL LEVELS IN THE COMPANYOPEN COMMUNICATION AT ALL LEVELS IN THE COMPANY

2.2. SYSTEMS FOR FORECASTIONG AND MONITORING - SYSTEMS FOR FORECASTIONG AND MONITORING - EXAMPLE SAPEXAMPLE SAP

3.3. REDUCE COMPLEXITY AND DUPLICATIONSREDUCE COMPLEXITY AND DUPLICATIONS

4.4. DEFINE CONSUMER/CUSTOMER STANDARDSDEFINE CONSUMER/CUSTOMER STANDARDS

5.5. HELP IDENTIFY COST SAVINGS. THIS ALLOWS FOR HELP IDENTIFY COST SAVINGS. THIS ALLOWS FOR REINVESTING, BETTER PROFITABILITY, ETC.REINVESTING, BETTER PROFITABILITY, ETC.

Shared Expectations with Shared Expectations with MarketingMarketing

1.1. NEVER COMPROMISE QUALITY AND SAFETY. DEFINE AND NEVER COMPROMISE QUALITY AND SAFETY. DEFINE AND IMPLEMENT CONSISTENTLYIMPLEMENT CONSISTENTLY

2.2. WORK ON FACTS THAT ARE STATISTICALLY BASEDWORK ON FACTS THAT ARE STATISTICALLY BASED

3.3. MUST HAVE A CONTINUOUS IMPROVEMENT MINDSET AND MUST HAVE A CONTINUOUS IMPROVEMENT MINDSET AND PROCESSPROCESS

4.4. MUST PROVIDE EXCEPTIONAL CUSTOMER SERVICE LEVELSMUST PROVIDE EXCEPTIONAL CUSTOMER SERVICE LEVELS

5.5. FOCUS ON CONTINUOUSLY REDUCING THE DELIVED FOCUS ON CONTINUOUSLY REDUCING THE DELIVED COSTSCOSTS

Supply Chain Allows You To:Supply Chain Allows You To:1.1. ENGAGE EMPLOYEES AT ALL LEVELS IN THE ENGAGE EMPLOYEES AT ALL LEVELS IN THE

ORGANIZATION.ORGANIZATION.

2.2. BETTER UTILIZE ASSETSBETTER UTILIZE ASSETS

3.3. IMPROVES WORKING CAPITALIMPROVES WORKING CAPITAL

Example: TV DinnersExample: TV Dinners• Sales provides a monthly forecast by customer. Customer Sales provides a monthly forecast by customer. Customer

service rolls up to a monthly sales forecast by distribution service rolls up to a monthly sales forecast by distribution center.center.

• Production plans/schedules based on lead time to deliver to Production plans/schedules based on lead time to deliver to DCs. Procurement negotiates with suppliers for chicken, DCs. Procurement negotiates with suppliers for chicken, peas, carrots, potatoes, and sauces. peas, carrots, potatoes, and sauces.

• Ingredients are bought and scheduled to be delivered just Ingredients are bought and scheduled to be delivered just prior to production. Product is produced and shipped to prior to production. Product is produced and shipped to distribution centers across the country. distribution centers across the country.

• The product is then shipped to retailers for stocking their The product is then shipped to retailers for stocking their shelves and consumer purchases.shelves and consumer purchases.

Inventory ManagementInventory Management

Uses forecasted sales to predict the Uses forecasted sales to predict the inventory that needs to be produced.inventory that needs to be produced.

Customer lets them know at least 1 Customer lets them know at least 1 wk ahead of time if items needed wk ahead of time if items needed differs from the forecasted sales.differs from the forecasted sales.

They use these numbers to meet the They use these numbers to meet the new requirements, if necessary.new requirements, if necessary.

Centralized Logistics Centralized Logistics OrganizationOrganization

Corporate Integrated Logistics Corporate Integrated Logistics

Schaumburg, IllinoisSchaumburg, Illinois

Facility manages all distribution Facility manages all distribution centers and transportation. centers and transportation.

Distribution MethodsDistribution Methods

Emphasizes on over-the-road carriers Emphasizes on over-the-road carriers for its replenishment loads.for its replenishment loads.

Heavy user of rail and intermodal Heavy user of rail and intermodal services. services.

In specific geographic locations, it In specific geographic locations, it uses carriers skillful at managing uses carriers skillful at managing shipments from local distribution shipments from local distribution centers to customers. centers to customers.

Supply Chain VisualSupply Chain Visual

Supply ChainSupply Chain

Raw Materials come from all over the Raw Materials come from all over the United Stated and also from United Stated and also from overseas.overseas.

The raw materials are then The raw materials are then transported to the production plants transported to the production plants and then to the distribution centersand then to the distribution centers

Allocation of SalesAllocation of Salesby Industryby Industry

Retail Products, 58%

Food Service (Restaurants)

26%

Food Ingredients

(Manufacturer) 16%

Information SystemsInformation Systems

Legacy or company-built systemsLegacy or company-built systems

Third-party and best-of-breed Third-party and best-of-breed software software

Manugistics Group IncManugistics Group Inc. for . for transportation management, and a transportation management, and a Red PrairieRed Prairie warehouse management warehouse management system in its dry network.system in its dry network.

Information SystemsInformation Systems

FAP- German Inventory SystemFAP- German Inventory System

System implemented to integrate all System implemented to integrate all aspects of companyaspects of company

Widely used system by similar Widely used system by similar consumer product companies.consumer product companies.

Growth TechniqueGrowth Technique

Treats businesses as a single entity Treats businesses as a single entity so to simplify integration with its so to simplify integration with its customers, providers and vendors. customers, providers and vendors.

Builds a business process supported Builds a business process supported by systemsby systems

When acquired a new business, they When acquired a new business, they can plug it right in, and get it up and can plug it right in, and get it up and running and integrated very rapidly.running and integrated very rapidly.

Information SourcesInformation Sources

Morton, Roger. “Balancing Act.” Morton, Roger. “Balancing Act.” LogisticsTodayLogisticsToday. 12 February 2005 . 12 February 2005 http://www.logisticstoday.com/sNO/6259/iID/20866/LT/displayStory.asphttp://www.logisticstoday.com/sNO/6259/iID/20866/LT/displayStory.asp

Chris, ConAgra Foods Employee Chris, ConAgra Foods Employee ContactContact

ConAgra Foods. ConAgra Foods. http://www.conagrafoods.com/index.jsphttp://www.conagrafoods.com/index.jsp