2005 Unsaleables Innovation Award Submission Secondary Packaging Redesign Submitted By Food Lion and

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2005 Unsaleables Innovation AwardSubmissionSec
ondary Packaging RedesignSubmitted By Food
Lion and Campbell Sales Company
Michael E. Slattery Director Supply Chain
Integration Campbell Sales Company Mike_Slattery_at_c
ampbellsoup.com PH 972-355-7500 FAX
972-355-7540
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In August 2004 the Campbell Soup Company
instituted an Adjustable Rate Based Unsaleables
policy with U.S. Retailers. In the development
and implementation of the new unsaleable policy,
Campbells maintained a set of guiding
principals. The primary principal being to
continue efforts with our trading partners to
reduce the instances of unsaleables throughout
the supply chain network. The following is an
excellent example of how two trading partners
worked together to efficiently and effectively
redesign a secondary packaging flaw in two short
weeks. The example is laid out as a timeline to
highlight the responsiveness of all parties
involved.
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Best Practice to Reduce Damage

• Background
• In December 2004 Campbells began shipping V8 and
  Tomato Juice beverages,(32oz and 46oz PET) in a
  new enclosed corrugated case. This new case
  design had a display window which was
  consistent with other PET beverages sold in
  sizes greater than 32 fluid ounces.
• V8 and Tomato Juice beverages are produced at the
  Campbells Napoleon Ohio Beverage Plant and
  shipped to Campbells three distribution centers
  in the Eastern U.S.
• After a flow through of existing inventories, the
  new V8 packaging began reaching customers in
  early January 2005.
• Jan 10, 2005 First Awareness of Problem
• Food Lion DC6 reports internally that the glue
  on the V8 Juice PET secondary packaging is not
  holding together and is causing the case to break
  apart during the picking process.
• Food Lion sends an email to Campbells alerting
  they are having problems with the V8 cases not
  staying together during the picking process.
  Expresses problem as insufficient glue and asks
  for resolution.
• Email sent internally throughout Campbells that
  customers are experiencing problems with V8 case
  packaging.
• Campbells communicates to its customers that it
  will accept returns on any beverage product that
  is experiencing a packaging problem.

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Package Redesign Timeline

• Jan 11th - Internal Campbells Communication
• Campbells Logistics Manager forwards email to
  Campbells Napoleon Beverage plant making them
  aware of insufficient glue issue and asks for
  resolution and next steps.
• A second email from Food Lion is received
  concerning the packaging failure. It contain
  pallet and product codes. Food Lion indicates
  digital pictures will be forwarded soon.
• Jan 12th - Root Cause Identified
• Food Lion forwards digital pictures of packaging
  problem to Campbells Logistics Manager.
• Email stresses that it appears to be a glue
  issue on the bottom flaps.
• Food Lions order retriever are using the
  display window to lift or pull case during the
  picking process.

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Package Redesign Timeline

• Jan 13th Campbells Develops Team to Respond to
  Packaging Design Flaws
• A multifunctional team meets to look at possible
  design changes. Meeting attended by
  representatives of Manufacturing, Packaging RD,
  Weyerhaeuser (corrugate), National (glue) and
  Kister (shrink-wrap). Test runs are planned for a
  new packaging design. Also added to the case
  design will be finger holds on the sides for
  efficient lifting and picking.
• National, which makes the glue, will make a visit
  to the Napoleon plant to review temperature
  settings, pressure applied, amount of glue,
  placement of glue and set up time.
• Jan 19th and 20th - Test Results
• A decision is made after the test runs to
  reposition the C-insert on the packaging design
  to totally enclose the front display window and
  go to a fully enclosed case design.
• The team works with Weyerhaeuser on a next
  generation display case.
• Email to Food Lion on implementation of quick fix
  until permanent package changes can be made. All
  future shipments will be shrink wrapped for extra
  strength.

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Package Redesign Timeline

• Jan 20th - Short Term Fix
• At Campbells three distribution centers serving
  customers in the Eastern US, all existing
  inventory of 32 and 46 oz PET is reworked and
  strengthen by the use of either shrink-wrap or
  tape prior to any further shipments to customers.
  
• Approximately 100,000 cases are reworked.
• Jan 25th - Long Term Fix Implemented
• Test runs on the newly designed case with the
  flipped C-partition is running fine and has
  proved to solve the packaging issue.
• Other testing conducted on the new case design
• a) Cases were put through a simulated case
  picking test.
• b) Increased glue and change glue pattern have
  increased the holding power of the flaps.
• c) Finger hold on side provides an effective
  picking of cases without stressing the flaps.
• d) Cases were placed in cold storage overnight to
  test holding power of the adhesive when
  crystallized.

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In Conclusion

• Best Practice Actions at Campbells
• Upon notification from Food Lion, Campbells
  attacks the issue using a multifunctional team.
  The team creates both a short term and long term
  solution developed and implemented in 15 days!
• Throughout the process Food Lion is made aware of
  the daily activities of the Campbells resolution
  team in regards to resolving the packaging flaw
  and timelines for new packaging roll out.
• The Campbells team chooses to correct the
  secondary packaging to withstand the rigors of
  the picking process beyond just additional glue
  application and increased corrugate strength .
  The new case packaging is designed with finger
  holds for manual picking and lifting.
• Steps were taken to correct the existing Campbell
  inventories at a considerable cost and issued
  return authorizations for existing customer
  inventories on any product experiencing a
  packaging problem.
• Best Practice Actions at Food Lion
• Food Lions DCs are uniquely set up. A defined
  proactive process has been established for
  unsaleables identification. Beyond just
  acknowledging unsaleable issues, the DCs provide
  specific details and start the communication
  trail.
• Food Lion buyers get involved in the
  communication process with Campbells. Providing
  valuable feedback and digital photos of the
  packaging flaws.
• Food Lion remained close to the issue and
  provided feedback in the development of the new
  case design.

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Were we successful in the eyes of Food Lion? A
resounding YES!

• Quotes from Food Lion
• I appreciate all thats been done to help us on
  our damages. I dont think Ive ever seen a
  problem like this tackled so fast and with so
  much dedication to the customer. I thank youOur
  customers thank you and our bottom line thanks
  you !!! I know now that I can count on Campbells
  to take seriously any issue we have with shrink.
  Randy McGuire, Warehouse Mgr, Food Lion
• I want to personally thank Campbells for
  reacting as quickly as they have. This is one of
  the fastest turn around that I have seen on a
  damage opportunity from any vendor partner and I
  thank you for that. Kenneth Todd, Mgr
  Reclamation, Food Lion
• This looks like a much better case and I don't
  think we will see any future issues on this item.
  Thanks for your swift action! This should
  significantly decrease potential damage costs
  that we could have incurred for a much longer
  time frame had we not taken such quick steps to
  correct the situation. I wish all of my vendors
  were as concerned with the nature of their
  business as you are. Michael Brown, Buyer.
  Food Lion