Campbell’s set out plan to boost supply chain efficiency

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Soup company Campbell’s has set out a series of initiatives to improve supply chain efficiency and reduce overhead costs across the organisation.

To improve the efficiency of its supply chain, Campbell will invest in a new system to automate packing operations at its biscuit plant in Virginia, Australia. This investment, which includes capital expenditure of some $40m, will occur over an 18-month period.

In the US, Campbell will improve asset utilisation by shifting production of ready-to-serve soups from its plant in Paris, Texas, to its facilities in Napoleon, Ohio and Maxton, NC.

Denise Morrison, chief operating officer and chief executive elect, said: “The steps we are announcing today will help us continue to lower our costs and help fund our plans to drive the growth of the business. The supply chain initiatives will enable us to improve manufacturing efficiency and further adjust the utilization of our assets to evolving consumer demand.”

It also plans to close its office in Moscow and exit the Russian market. In total, the company expects to cut the workforce by some 770 producing savings of some $60m in 2012.

Morrison  said: “Though Russia remains an attractive potential growth market, the results of the business we launched in that market in September 2007 have fallen short of original expectations. We believe that opportunities currently under exploration in other emerging markets, notably China, offer stronger prospects for driving profitable growth within an acceptable time frame.”

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