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of years of family-favorite food brands
The Hillshire Brands Company has a very specific recipe for success: combine a talent for producing convenient meals and snacks with a passion for innovating new products. This formula is delivering delicious foods for your family to enjoy at breakfast, lunch, and dinner. For Hillshire Brands, the right recipe for innovation in its supply chain is the SAP® SNC Supplier Collaboration rapid-deployment solution.
The Hillshire Brands Company
Chicago, Illinois, USA
Chicago, Illinois, USA
SAP Supply Network Collaboration rapid-deployment solution for customer collaboration
The Hillshire Brands Company is justifiably famous for traditional sausages and such iconic brands as Jimmy Dean, Ball Park, and Hillshire Farms. But the company is constantly striving to bring tasty new products to hungry consumers as well. For the last year or so, Hillshire Brands has been laser focused on delivering new products to market that the company’s Chief Executive Officer Sean Connolly describes as:
Bringing new products to market takes fresh thinking in both a company’s product development and its business operations. At Hillshire Brands, this includes improving collaboration with the suppliers that provide the ingredients and packaging needed to produce their products.
An optimized supply chain would:
Hillshire Brands’ heritage of making delicious smoked sausages dates back some 80 years, but the current Hillshire Brands is actually quite new. In 2012, while still known as Sara Lee Corporation, it completed the spin-off of its international coffee and tea business.
The SAP® Supply Network Collaboration application (SAP SNC) was already part of Sara Lee’s software landscape. Now with a new organization and an updated corporate vision, company leaders saw a rapid-deployment solution (RDS) – with its packaged services and best practices approach – as the best way to quickly optimize the SNC environment and gain full value.
As part of the RDS support, SAP provided both a project manager and an organizational change manager. These onsite SAP consultants walked Hillshire Brands through the tool’s design and guided them along with the implementation.
The Hillshire Brands team supported the rollout by focusing on training personnel from the company’s 13 manufacturing plants and dozens of key suppliers. A three-day employee training session covered each of the three functional areas to be supported: purchase orders, scheduling agreement release processes, and supplier-managed inventory (SMI).
About 50 suppliers are currently onboard with the revitalized SNC system, and Hillshire Brands is savoring the advantages of real-time and automated collaboration.
Hillshire Brands sales and marketing organizations can also work more effectively with both plant managers and suppliers to ensure that everything is in place to support an upcoming promotion or product launch.
Hillshire Brands sales and marketing organizations can work more effectively with both plant managers and suppliers to ensure that everything is in place to support an upcoming promotion or product launch.
As a result of reduced days in inventory alone, Hillshire Brands has forecasted a one-time savings of US$1.5 million. Add this to an expected ongoing annual savings of approximately half a million dollars in direct materials expenses, reduced inventory obsolescence, and avoidance of revenue loss due to stock-outs.
According to the Hillshire Brands Procurement Team, the company’s focus is now on ramping up their SMI processes over the next two years. They see sharing the responsibility for managing materials with suppliers as critical to reducing the company’s overall inventory. The procurement team notes that Hillshire Brands plans to have suppliers themselves manage up to 80% of the inventory in some areas.
Innovation runs strong at Hillshire Brands. So for consumers, the company’s leaner and more efficient supply chain means we should look for even more new products on the shelves of our neighborhood grocery stores.