Product details

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Published by: Harvard Business Publishing
Published in: 1994
Length: 21 pages
Data source: Field research

Abstract

Campbell Soup, like most food manufacturers, faced grocery chain and wholesale demand for its goods driven by Campbell''s own promotional pricing structure rather than retail consumer demand. Former policies to encourage overstock created huge swings in production and inventory levels. Campbell''s introduced continuous product replenishment (CPR) under which they would manage inventory for their customers, enabled by electronic data interchange to link supply to actual demand. Implementing this channel shift required a restructuring of relationships with its customers and a radical restructuring of its promotional policies.

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Abstract

Campbell Soup, like most food manufacturers, faced grocery chain and wholesale demand for its goods driven by Campbell''s own promotional pricing structure rather than retail consumer demand. Former policies to encourage overstock created huge swings in production and inventory levels. Campbell''s introduced continuous product replenishment (CPR) under which they would manage inventory for their customers, enabled by electronic data interchange to link supply to actual demand. Implementing this channel shift required a restructuring of relationships with its customers and a radical restructuring of its promotional policies.

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