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Nabisco Supply Chain Evolution


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This presentation describes the Evolution in Nabisco Supply Chain in details (at each step), also It gives an overview about supply chain management solutions

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Nabisco Supply Chain Evolution

  1. 1. Nabisco Supply Chain Evolution Ahmed Taha Oct 2013 S
  2. 2. Agenda S Nabisco Overview S Old Supply Chain Overview S Changes in Supply Chain S New Supply Chain Overview S Supply Chain Management Solutions S Nistevo S ServiceCraft
  3. 3. Nabisco Overview S Originally known as the National Biscuit Company S Is an American manufacturer of cookies and snacks. S Headquartered in East Hanover, New Jersey. S 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 S Employing more than 1,500 workers and turning out some 320 million pounds of snack foods annually.
  4. 4. Old Supply Chain Overview
  5. 5. Changes in Supply Chain S 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.
  6. 6. Step 1 (Old Way)
  7. 7. Changes in Supply Chain S 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.
  8. 8. Step 1 (New Way)
  9. 9. Changes in Supply Chain S 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.
  10. 10. Step 2 (Old Way)
  11. 11. Changes in Supply Chain S 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.
  12. 12. Changes in Supply Chain S 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.
  13. 13. Step 3 (Old Way)
  14. 14. Changes in Supply Chain S 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.
  15. 15. Step 3 (New Way)
  16. 16. Changes in Supply Chain S 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.
  17. 17. Step 4 (Old Way)
  18. 18. Changes in Supply Chain S 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.
  19. 19. Step 4 (New Way)
  20. 20. Changes in Supply Chain S 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.
  21. 21. Step 5 (Old Way)
  22. 22. Changes in Supply Chain S 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.
  23. 23. New Supply Chain Overview
  24. 24. Supply Chain Management Solutions Nistevo  Sterling Transportation S Nistevo, a leading provider of “software as a service” (SaaS) transportation management solutions, is now a part of IBM Sterling Transportation Management System. S Choose from: S Order Management S Supply Chain Visibility S Warehouse Management S Transportation Management S Global Data Synchronization
  25. 25. Supply Chain Management Solutions Nistevo  Sterling Transportation
  26. 26. Supply Chain Management Solutions ServiceCraft  Saddle Creek S ServiceCraft, LLC was acquired by Saddle Creek Corporation. ServiceCraft, LLC, doing business as ServiceCraft Logistic. S Services S Increase speed to market S Accommodate fluctuations S Control supply chain costs S Improve service to customers S Focus on core competency
  27. 27. Supply Chain Management Solutions ServiceCraft  Saddle Creek