Nabisco Supply Chain Evolution

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Nabisco Supply Chain

EvolutionAhmed Taha

Oct 2013

Agenda

Nabisco Overview

Old Supply Chain Overview

Changes in Supply Chain

New Supply Chain Overview

Supply Chain Management Solutions Nistevo ServiceCraft

Nabisco Overview

Originally known as the National Biscuit Company

Is an American manufacturer of cookies and snacks.

Headquartered in East Hanover, New Jersey.

Nabisco's plant in Chicago, a 1,800,000-square-foot (170,000 m2) production facility at 7300 S. Kedzie Avenue, is the largest bakery in the world

Employing more than 1,500 workers and turning out some 320 million pounds of snack foods annually.

Old Supply Chain Overview


Step 1 (Old Way)

Nabisco, of Parsippany, N.J., figures the amount of Planters cashews that Wegmans Food Markets in Rochester, N.Y., might sell in a quarter--without consulting the supermarket chain.

Step 1 (Old Way)


Step 1 (New Way)

Nabisco and Wegmans exchange sales forecasts via the Web and agree on an amount to supply Wegmans. Calculations are largely based on current sales data from the checkout counter, past patterns, and upcoming promotions.

Step 1 (New Way)


Step 2 (Old Way)

Nabisco alerts its Brazil office via fax or phone, and employees deliver orders in person to local cashew growers. Farmers put the raw cashews on trucks, which take them to the port. The shipping company notifies Nabisco when the cashews set sail.

Step 2 (Old Way)


Step 2 (New Way)

There's not much difference here, only Nabisco now contacts its Brazil office via e-mail. Employees still have to contact local farmers in person.


Step 3 (Old Way)

When the cashews arrive in Jacksonville, Fla., a freight forwarder handles the paperwork needed to clear the shipment through customs and scurries to find a truck to deliver them to Nabisco plants. The truck may travel only half-full and have no cargo on the return trip, making it costly for Nabisco.

Step 3 (Old Way)


Step 3 (New Way)

Shippers and truckers always have up-to-date info via an online exchange like the one being developed by Nistevo, a startup based in Eden Prairie, Minn. It's a collaborative logistics network that connects multiple manufacturers and transportation companies. The exchange matches orders and makes certain trucks have full loads.

Step 3 (New Way)


Step 4 (Old Way)

Trucks take the cashews to Nabisco's manufacturing plants. After the nuts are roasted and packed, trucks carry them to Nabisco's 12 warehouses nationwide.

Step 4 (Old Way)


Step 4 (New Way)

After arriving at the manufacturing plants, the cashews are roasted and packed. Nabisco sends Wegmans' cashews to the warehouse of a consolidator, such as ServiceCraft, which replaces the Nabisco distribution center.

Step 4 (New Way)


Step 5 (Old Way)

The nuts are in a warehouse and ready for shipment, but they may not be close to the store where Wegmans needs the cashews because regional demand was not discussed. If Nabisco ordered too many cashews, they turn soft in its warehouses. If it ordered too few, Wegmans will buy cashews elsewhere.

Step 5 (Old Way)


Step 5 (New Way)

Because Nabisco knows Wegmans' needs, there isn't a shortage or oversupply of cashews. From the consolidator, the nuts are put on trucks going to Wegmans with other products from competitors. Transportation, unloading, warehousing, and inventory costs drop.

New Supply Chain Overview

Supply Chain Management Solutions

Nistevo Sterling Transportation

Nistevo, a leading provider of “software as a service” (SaaS) transportation management solutions, is now a part of IBM Sterling Transportation Management System.

Choose from: Order Management Supply Chain Visibility Warehouse Management Transportation Management Global Data Synchronization


Nistevo Sterling Transportation


ServiceCraft Saddle Creek

ServiceCraft, LLC was acquired by Saddle Creek Corporation. ServiceCraft, LLC, doing business as ServiceCraft Logistic.

Services Increase speed to market Accommodate fluctuations Control supply chain costs Improve service to customers Focus on core competency


ServiceCraft Saddle Creek

Thanks

Nabisco Supply Chain Evolution

Business

Transcript of Nabisco Supply Chain Evolution