Demand (Mis-)Management at Campbell’s Soup

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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

Benefits Campbell’s Benefits Retailer 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

2/17/00

Heinz’ Efforts Aug. 1996

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