Campbell Soup faced large variations in orders corresponding to its promotional

Campbell Soup faced large variations in orders corresponding to its promotional campaigns. By offering deep discounts for condensed soup in January and June retailers increased orders, well above their short-term needs. Some retailers bought their annual purchases during these promotional periods. Huge swings in orders led to inefficiencies throughout the supply chain. Before peak demand periods production facilities had to work overtime and store their processed inventory in expensive facilities. Throughout the remainder of the year these facilities were under-utilized. Forward buying by wholesalers required them to hold unreasonable levels of inventory, throughout the year. Campbell Soup intended to eliminate these wasteful practices by improving supply chain coordination and eliminating incentives to forward buying.Take the position of someone who is trying to cope with the problems of forward buying and diverting in a different product/industry. The target of your analysis should be a senior manager who is familiar with the details of the Campbell case, but wants to know how to adopt CPR to his/her product.Answer this question: What is the relationship between CPR, product pricing, Every-Day-Low-Price (EDLP), and product promotion? Why do all of these have to be synchronized to achieve the benefits of CPR?
Requirements: 400   |   .doc file

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