• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Terra Technology Provides Campbell Soup with a Recipe for Supply Chain Success

Terra Technology Provides Campbell Soup with a Recipe for Supply Chain Success

July 1, 2006
Global Logistics & Supply Chain Strategies

Campbell Soup Company is a $7.5bn leader in the consumer packaged goods industry producing familiar brands such as Campbell's, Prego, V8, Franco-American, Swanson, Godiva and Pepperidge Farm. Campbell Soup North America accounts for over $3bn of that revenue with 26 plants, co-packers and distribution centers producing almost 1,000 products.

In 2001, Campbell adopted a strategy to improve customer satisfaction by aggressively introducing new products to market, introducing a slew of successful products such as Campbell's Soup at Hand. As the number of new products and new distribution channels increased tremendous pressure was placed on an already strained supply chain. Campbell's weekly forecast error was 42 percent and the company was forced to carry excess inventory and incur high shipping costs to maintain customer service levels.

Faced with these challenges, Campbell decided to transform its demand management processes and improve its systems to improve profitability and lay the groundwork for a produce-to-demand strategy. The company started a "Class A" sales and operations planning process by installing Terra Technology's Real-Time Forecasting (RTF) and Real-Time Inventory (RTI).

RTF's approach to forecasting includes analyzing the most recent demand signals each night and adjusting the forecasts to better predict demand. Because RTF detects unexpected shifts in demand when they occur, Campbell is aware of them immediately rather than weeks later. Campbell can react quickly and efficiently to produce or ship additional products without expediting shipments because of missed demand signals.

"The implementation of Terra's RTF has been an unquestioned success within our company," says Michael Mastroianni, vice president of North American planning, reliability and operations for Campbell Soup Company. "The proof is in the pudding. The day we turned the [RTF] tool on, we dropped 50 percent in error [from 42 percent to 21 percent]. From day one, the quality of our shipments from warehouses and plants has improved by that magnitude."

Because of the success of RTF, Campbell implemented Terra's newest software solution, Real-Time Inventory, in 2005. Similar to RTF, RTI uses advanced mathematics to generate a solution, in this case multi-echelon inventory targets. The software uses actual, current data to determine targets and safety stock is significantly reduced.

"We carry 20 percent less safety stock using RTI," says Steve Cortese, Campbell's director of supply chain infrastructure. "At the same time we have become more responsive to our customers. Better inventory management results in a more flexible supply chain and benefits retailers and consumers because the right products are always on the retailers' shelves."

The RTI implementation has exceeded all of Campbell's objectives for inventory and order fill rates, including a $10m savings in inventory in the first year. Safety stock decreased 20 percent and order fill improved 5 percent. Unplanned change-overs due to demand declined significantly, increasing manufacturing stability. The bottom line for Campbell Soup is better customer service and a reduction in costs of over $10m as a direct result of implementing Terra's RTI and RTF.

    RELATED CONTENT

    RELATED VIDEOS

    Technology Forecasting & Demand Planning Sales & Operations Planning Consumer Packaged Goods Food & Beverage
    KEYWORDS consumer packaged goods Food and Beverage Forecasting & Demand Planning Sales & Operations Planning Technology
    • Related Articles

      The New Demand Planning: Leveraging CRM for Post-Pandemic Supply Chain Success

      Four Key Attributes of a Technology Partner Focused on Supply Chain Success

      Better Forecasting, S&OP Support Transformation At Campbell's Soup

    Global Logistics & Supply Chain Strategies

    Transplace Helps Del Monte Streamline Network

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • An employee in a warm suit crouches down to get boxes of food ready for shipping at a warehouse

      Packaging Optimization Is Boosting Cold Chain Growth

      Air Cargo
    • 025_the_rapid_evolution_of_warehouse_modernization_v1-(540p).png

      Watch: The Rapid Evolution of Warehouse Modernization

      Business Strategy Alignment
    • A PILE OF COFFEE BEANS SITS IN A COMPLETELY WHITE SPACE.

      U.S. to Levy 25% Tariff on Brazil, After 301 Investigation

      Global Trade & Economics
    • GIST-webinar-DecisionPoint.png

      From Fragmented Tools to Unified Workflows: How to Transform Field Operations

    • 023_automation's_scalability_in_the_warehouse_v1 (540p).png

      Watch: Automation's Scalability in the Warehouse

      All Warehouse Services

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open General Logistics Systems
    Hy-Tek iGPS Korber
    Lyngsoe Procurability Quinyx
    SAP Sikick Systech
    S&P Global Mobility TADA TransImpact
    US Bank Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing