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Demand ( Mis -)Management at Campbell’s Soup

Demand ( Mis -)Management at Campbell’s Soup. Dr. Ron Lembke. Soup Consumption. When do you drink chicken noodle soup? When you’re sick When do people get sick? In the winter. Soup Consumption. What would you do?. How would you react to that demand?. Soup Shipments. 11/17/99.

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Demand ( Mis -)Management at Campbell’s Soup

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  1. Demand (Mis-)Management at Campbell’s Soup Dr. Ron Lembke

  2. Soup Consumption • When do you drink chicken noodle soup? • When you’re sick • When do people get sick? • In the winter

  3. Soup Consumption

  4. What would you do? • How would you react to that demand?

  5. Soup Shipments

  6. 11/17/99

  7. Benefits • Campbell’s Benefits • 15% Sales increase • 6% transportation cost reduction • 30% less sales staff labor time • Less order variation- no forward buys • Retailer Benefits • Inventories cut in half • Stockouts from 1.5% to 0.3% • Lower order processing costs

  8. 2/17/00

  9. Heinz’ Efforts • Aug. 1996

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