This document provides an overview of Campbell Soup Company's supply chain transformation journey over the past decade. It summarizes that Campbell started with a fragmented supply chain and worked to strengthen fundamentals like safety, quality and service. It implemented a demand-driven supply network approach, achieved cost savings through initiatives like plant simplification, and reduced its environmental footprint. Recent challenges included a major network consolidation and planning system implementation, but Campbell expects to return to prior improvement trends. The speaker emphasizes that bold leadership, establishing the right foundation, and declaring ambitious goals were key to Campbell's supply chain progress.

1. 1
Dave Biegger
Driving Supply
Chain Process
Improvement:
Trials and
Tribulations
Sr. Vice President, Global Supply Chain
Campbell Soup Company

2. 2
Personal Background
• Iowa State University – BS Chemical Engineering
• Procter & Gamble (~24 years)
• Campbell Soup Company (10 years)
– SVP Global Supply Chain
– VP N.A. Supply Chain
– VP Global SC Strategy and Operational Excellence

3. 3

4. 4
Agenda
• Background on Campbell Soup Company
• Perspective on SC Insights Rating
– Path to improvement
– Challenges
– Learnings

5. 5
Campbell By the Numbers
• World Headquarters based in Camden, NJ
– Approximately 20,000 employees worldwide
• A growing global food company with annual sales
of more than $8 billion
• Powerful brands in three categories:
– Soup & Simple Meals, Snacks and Healthy Beverages
• U.S. market leader in wet soup
• Products available in more than 100 countries
• Launching over 200 new products in F15

6. 6
Most
people
know
Campbell
as this

7. 7

8. 8
Our Portfolio

9. 9
Our History
Joseph Campbell, a fruit merchant, and
Abraham Anderson, an icebox manufacturer,
form partnership to can tomatoes, vegetables,
jellies, condiments and mincemeat. First
plant opens in
Camden, N.J.
Dr. John T. Dorrance develops
formula for condensed soups.
One of the original varieties is
Tomato soup.
Campbell’s iconic Chicken
Noodle Soup is introduced
to consumers.
Campbell acquires
Pepperidge Farm Inc.
Campbell acquires Pace
Foods, Inc., maker of leading
brand of Mexican sauces.
Campbell fully acquires Arnott's
Limited of Australia, one of the
largest biscuit manufacturers in
the world.
Prego pasta sauce, based
on a family favorite of a
Campbell chef, is
introduced nationally.
V8 Vegetable juice
business is acquired.
Campbell acquires Plum
Organics, the #2 organic baby
food company in the U.S.
Campbell
acquires
Bolthouse
Farms.
Campbell acquires
Kelsen Group, a Denmark-based
company, which
produces baked snacks.
Divestiture of Godiva.
1869 1897 1934 1948 1961 1981 1995 1997 2008 2012 2013

10. 10
Campbell’s Fun Facts
If all the cans of Campbell’s
soup sold last year were
laid end-to-end, they
would encircle the
Equator over
Andy Warhol ate
Campbell’s Tomato soup
for lunch every day for
Campbell uses more than
each year in its Chicken & Stars
soup. In three years, Campbell
produces more stars than
are in the Milky Way

11. 11
OUR PURPOSE
Our purpose honors the heritage of our 145-year
company. Since the founding of Campbell in 1869,
core beliefs have driven our company:
• We believe in the power of food to connect
people
• Food should be good, delicious and accessible –
all three, without compromise
• We have a duty to protect the Earth; a duty to
nourish and give back to our communities; and a
duty to the people who bring their talents to
Campbell every day

12. 12

13. 13
Campbell Global Supply Chain
• Agriculture
• Procurement
• Engineering
• Manufacturing
• Contract Manufacturing
• Supply and Demand Planning
• Customer Service
• Logistics and Warehousing
• Quality
• Environmental Sustainability

14. 14
Campbell Manufacturing Facilities
Campbell Soup
Supply Company
Dixon, CA
Bolthouse Operations
Bakersfield, CA
Pepperidge Farm
Bloomfield, CT
Campbell Soup
Supply Company
Stockton, CA
Pepperidge Farm
Willard, OH
Pepperidge Farm
Downers Grove, IL Ecce Panis, Inc.
Pepperidge Farm
Lakeland, FL
East Brunswick, NJ
Campbell Soup
Supply Company
Maxton, NC
Campbell Soup
Supply Company
Napoleon, OH
Campbell Soup
Supply Company
Paris, TX
Pepperidge Farm
Denver, PA
Pepperidge Farm Frozen Food Operation
Downingtown, PA
Pepperidge Farm
Richmond, UT
StockPot
Everett, WA
Campbell Soup
Supply Company
Milwaukee, WI
Bolthouse Operations
Prosser, WA
Bolthouse Farms
Canada, Inc.
Wheatley, Ontario
Campbell Company of Canada, Inc.
Toronto, Ontario
Kelsen Group
Norre Snede, Denmark
Kelsen Group
Ribe, Denmark
Arnott’s Biscuits
Selangor, Malaysia
Arnott’s Indonesia
Jawa Baret, Indonesia
Arnott’s Biscuits
Huntingwood, Australia
Arnott’s Biscuits
Marleston, Australia
Arnott’s Biscuits
Virginia, Australia
Campbell Soups Australia
Shepparton, Australia

15. 15
SC Index (2006-2012)

16. 16
Background/Challenges
Prior to rating period (8-10 years ago):
• Great people, great culture
(people oriented, high values)
• Technically capable
• Tremendous pride
• Fragmented and de-centalized SC
• Complexity (products, processes)
• Non-Standard

17. 17
Journey
• Company turnaround situation
• New leadership
– Focus on leadership and engagement
• External Benchmarking
• Talent/Culture
– Mix of strong internal and external, diversity
– Focus on collaboration and reapplication
(reward/expectations)

18. 18
Developed Simple and Clear One Page Strategy
Goal Areas:
• Support Growth and Innovation
while achieving Flat-to-Declining
Total Delivered Cost
• Transform the Supply Chain to a
Demand Driven Supply Network
• Improve/maintain Supply Chain
fundamentals to world class
benchmarks
Strategy Areas:
• Win vs Competition
• Win with Consumers
• Win with Customers
• Win with People
• Win with our Communities

19. 19
Journey – Started with the Basics
• Strengthened the Foundation
– Safety (standards, accountability, focus)
– Quality
– Service
– Reliability/Predictability
• Approached differently
– Work processes and standardization
– Network approach

20. 20
Operational Excellence
(Example of Network Approach)
Network Meet World Class
Meet World Class Benchmarks
Leadership
Environmental
Mgmt &
Sustainability
Health &
Safety
Demand Driven Supply
Quality &
Food Safety
Management
Asset
Reliability
Operations
Reliability
Continuous
Improvement
High
Performance
Organization
Innovation
Delivery
Excellence
Logistics
Operations
Owner Owner Owner Owner Owner Owner Owner Owner Owner Owner
Integrated Pillars with Process Discipline to deliver a Demand Driven Supply Network (DDSN)
Focus Area #1
(Owner)
Focus Area #1
(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
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(Owner)
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(Owner)
Focus Area #2
(Owner)
Focus Area #2
(Owner)
Focus Area #3
(Owner)
Focus Area #3
(Owner)
Focus Area #3
(Owner)
Focus Area #3
(Owner)
Focus Area #3
(Owner)
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(Owner)
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(Owner)
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(Owner)
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(Owner)
Focus Area #3
(Owner)
Example: Vision
and Mission
Example:
Process Control
Example: Daily
Direction Setting
Example:
Constraint
Management
Example:
Supplier Quality
Example:
Autonomous
Maintenance
Example:
Prob Solving
RCFA,6sigma,
Kaizen
Our Functions: Finance, Engineering, Planning, Logistics and Customer Service, Human Resources, Procurement, Quality, Safety,
Business Teams, Information Technology, Contract Manufacturing, Reliability, Continuous Improvement
our Values
our Principles
Benchmarks
Growth & Innovation
withFlat to Declining TDC

21. 21
Deployed SC Burning Platform Globally
• Total Delivered Cost (broader focus on Margin management)
– Set aspirational goal: Flat to Declining year after year
– Educated and engaged the SC and Company leadership
– Provided tools and approaches
• Zero Loss Analysis
• Focused Improvement (Kaizen)
• Value Stream Mapping
• Black Belt/Green Belt program
– Changed behavior and mindset
(holistic vs parochial)

22. 22
Developed TDC/Cost Savings Model
Manufacturing
(% Savings of total cost)
Logistics
(% Savings of total cost)
Product Design
(% Savings of total cost)
X% Breakthrough
Savings
Y% Base/Continous
Improvement Savings
Owner:

23. 23
With Progress on the Foundation and Progress
on TDC, Focused Strategically on DDSN
• Past Experience (P&G, Lora, etc)
• Value Opportunity
• Culture/Org Impact
Consumer
Insights
• More cost conscious
• More occasions
Consumer Driven, End-to-End, Flexible & Agile Value Chain
• Initial doubt and resistance
• Freedom/Engagement
• Creativity/Ingenuity
Products Campbell’s Supply Chain
Customers
Distri-bution
Procure-ment/
Materials
Mgmt.
Manufactur-ing
(Make-
Pack)
supp-lier
Mgmt.
• More channels and formats
• More service requirements
• More customization
• More variety
• Faster speed to market
• Shorter lifecycles
Maximum impact will come from collaborating beyond the SC to align
capability and investment with the right level of Product and Customer complexity

24. 24
Initiated and Connected Major Programs
Supporting DDSN
Operating
Strategy
Visibility and
planning
Operational
Excellence
Network
Optimization
Common
Platforms
Integration and
interdependency
are key

25. 25
Example of Common Platform/Simplification
• Declared the Opportunity
• Committed the resources and to immediate return
– Broke with traditional approach
• Simplified (eliminated non value add)
– Product (principle of quality)
– Process
– Equipment/Plant
• Results
– 35% less assets with same capacity and more flexibility
– Significant expense savings
– Inventory reduced
– Products: reduced dice sizes of meats/vegetables ~75%, total ingredients reduced 40%, common bases, etc
– Quality: improved products with reduced variation

26. 26
Results Progress Over Rating Period
• Fundamentals
– Safety (injuries reduced by 76%)
– Environmental: ~20% reduction in both
water usage & GHG emissions
– Strong Service improvement
– Reliability (efficiencies up 10%)
• Cost
– Savings increased by >30%
– TDC trajectory “flattened” in normal inflation years
• Network footprint (reduced number of plants by 45%)

27. 27
Considerations
• It is a clear choice to aspire to step
change vs incremental steady progress
• Greater risk obviously comes with
bolder actions
• Good Priority Setting and monitoring
Org Capacity are key in minimizing risk

28. 28
Recent Challenges
• Major network consolidation (network optimization)
– Inventory increase: Planned for and temporary (and justified)
– Service impacts: while planned carefully and executed well in general, had
impact on Capacity/Demand ratio, warehouse and logistics stress
• Major Planning System implementation
– Scope and complexity extended transition
• Margin
– Mix due to acquisitions of high growth businesses with lower margins
– Trade investment trend that is now returning to historical levels

29. 29
SC Index Rating Perspective
• SC progress at Campbell has been consistently very strong
over an extended period of time
– SC has provided great value to the company
• Recent fall in rankings are due to some challenges we have
experienced, but also heavily influenced by planned actions
– Appropriate choices and trade-offs can adversely impact the rating…but
they are still the right choices
– Expect that we will recover fairly quickly as we we return to prior
improvement trends

30. 30
Final Thoughts on the Campbell SC
Ongoing Journey
• People and Leadership make the difference
(always)
• A solid and correct foundation is key prior to
launching significant improvement efforts
• It is important for leaders to take the risk
and declare breakthrough goals
– Incremental steps and goals will not lead to
breakthrough results
– Accept and minimize the risk that comes
with bolder actions