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An insight into Conagra Brands’ renovation of its supply chain

ConsumerGeniuses

ConsumerGeniuses

Conagra Brands renovated its supply chain in a bid to save $1 billion over three years. The “fuel for growth” programme would focus on production, logistics, margin management, and new capabilities. Productivity is expected to rise to 4% of the cost of goods by 2025. The programme would reduce the distribution centres by 50% while providing logistics operators for automation and enhancing service and cost optimisation. An example is a distribution centre in Atlanta that combines Conagra and former Pinnacle operations in the Southeast, which is fully automated and uses 50% fewer people. $3 million is saved in warehousing costs and $200 million in logistics. Data and analytics have also been enhanced for better productivity. A baking plant in Indianapolis shows how, using product design assessment, material costs can be improved. In a similar vein, the digitisation of industry has opened the benefits of AI to the company and enabled it to process data and make decisions at a broader level. It has allowed Conagra’s Slim Jim meat snack business to unlock 40% of its capacity over four years. Digital connection “connected shop floor” will feature four pillars, including connected line, connected worker, yield management, and dashboard investment. It is predicted to deliver $300 million in manufacturing savings over the next three years. The overall approach is set to accelerate capital spending over the next three years to somewhere between 4% and 5%.

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