Whitney Marrett, Cody Joss,

1

• Presented By
• Whitney Marrett, Cody Joss,
• Ashley Williams, Thomas OConnor

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ConAgras Mission

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

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Supply Chain Vision

• TO BE THE BEST SUPPLY CHAIN IN OUR INDUSTRY

4
Supply Chain
Consolidating Over 100 points of distribution to
15 Integrated Mixing Centers

• Benefits
• Lower Cost
• Better Service
• Up to date order information

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Transportation and Warehousing Operations

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

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Operations Manifesto

• Recently developed strategy committing ConAgra to
  improving Operational efficiency
• Identifying savings opportunities in every aspect
  of their supply chain
• Efficiently producing the right products with the
  right quality requirements
• Improving logistics Network- transitioning from
  hundreds of storage facilities across America to
  14 state-of-the-art geographically designed
  mixing centers

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Supply Chain Objectives

• PROVIDE CONSISTENT QUALITY AND TIMELY SERVICE AT
  THE LOWEST DELIVERED COST FOR THE QUALITY AND
• QUANTITY SPECIFIED
• MANAGE COMPLETE SUPPLY SYSTEM FROM FIELD OR
  PROCUREMENT TO CUSTOMER OR CONSUMER. KEEP IT
  SIMPLE.

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How is this accomplished?

• OPEN COMMUNICATION AT ALL LEVELS IN THE
  COMPANY
• SYSTEMS FOR FORECASTIONG AND MONITORING - EXAMPLE
  SAP
• REDUCE COMPLEXITY AND DUPLICATIONS
• DEFINE CONSUMER/CUSTOMER STANDARDS
• HELP IDENTIFY COST SAVINGS. THIS ALLOWS FOR
  REINVESTING, BETTER PROFITABILITY, ETC.

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Shared Expectations with Marketing

• NEVER COMPROMISE QUALITY AND SAFETY. DEFINE AND
  IMPLEMENT CONSISTENTLY
• WORK ON FACTS THAT ARE STATISTICALLY BASED
• MUST HAVE A CONTINUOUS IMPROVEMENT MINDSET AND
  PROCESS
• MUST PROVIDE EXCEPTIONAL CUSTOMER SERVICE
  LEVELS
• FOCUS ON CONTINUOUSLY REDUCING THE DELIVED
  COSTS

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Supply Chain Allows You To

• ENGAGE EMPLOYEES AT ALL LEVELS IN THE
  ORGANIZATION.
• BETTER UTILIZE ASSETS
• IMPROVES WORKING CAPITAL

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Example TV Dinners

• Sales provides a monthly forecast by customer.
  Customer service rolls up to a monthly sales
  forecast by distribution center.
• Production plans/schedules based on lead time to
  deliver to DCs. Procurement negotiates with
  suppliers for chicken, peas, carrots, potatoes,
  and sauces.
• Ingredients are bought and scheduled to be
  delivered just prior to production. Product is
  produced and shipped to distribution centers
  across the country.
• The product is then shipped to retailers for
  stocking their shelves and consumer
  purchases.

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Inventory Management

• Uses forecasted sales to predict the inventory
  that needs to be produced.
• Customer lets them know at least 1 wk ahead of
  time if items needed differs from the forecasted
  sales.
• They use these numbers to meet the new
  requirements, if necessary.

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Centralized Logistics Organization

• Corporate Integrated Logistics
• Schaumburg, Illinois
• Facility manages all distribution centers and
  transportation.

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Distribution Methods

• Emphasizes on over-the-road carriers for its
  replenishment loads.
• Heavy user of rail and intermodal services.
• In specific geographic locations, it uses
  carriers skillful at managing shipments from
  local distribution centers to customers.

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Supply Chain Visual
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Supply Chain

• Raw Materials come from all over the United
  Stated and also from overseas.
• The raw materials are then transported to the
  production plants and then to the distribution
  centers

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Allocation of Salesby Industry
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Information Systems

• Legacy or company-built systems
• Third-party and best-of-breed software
• Manugistics Group Inc. for transportation
  management, and a Red Prairie warehouse
  management system in its dry network.

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Information Systems

• FAP- German Inventory System
• System implemented to integrate all aspects of
  company
• Widely used system by similar consumer product
  companies.

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Growth Technique

• Treats businesses as a single entity so to
  simplify integration with its customers,
  providers and vendors.
• Builds a business process supported by systems
• When acquired a new business, they can plug it
  right in, and get it up and running and
  integrated very rapidly.

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Information Sources

• Morton, Roger. Balancing Act. LogisticsToday.
  12 February 2005 http//www.logisticstoday.com/sNO
  /6259/iID/20866/LT/displayStory.asp
• Chris, ConAgra Foods Employee Contact
• ConAgra Foods. http//www.conagrafoods.com/index.j
  sp