CONAGRA FOODS INC.

OPTIMIZING INVENTORY THROUGH

SAP AND PARTNER SYNERGIES

Quick facts

Industry Key Challenges Benefits

Consumer products • Optimize inventory decisions while paring • Gained ability to dynamically and automati-
down 11+ supply chain planning cally update inventory targets across the
Revenue applications enterprise
US$11.6 billion • Execute effective inventory decisions by • Reduced finished goods inventories in
applying a consistent approach across targeted operations by 7%
Employees locations • Raised forecasting accuracy by 30%
25,000 • Improved store in-stock rate by 0.7%
Headquarters • Enhanced case-fill on-time rate by 0.2%
Omaha, Nebraska • Maximized value of investment in SAP
software
Web Site
www.conagrafoods.com
Ecosystem Engagement Highlights Lesson Learned
SAP® Solutions and Services • Took advantage of SmartOps’ participa- Connect with other SAP customers to learn
• SAP® Supply Chain Management tion in the Industry Value Network group how they are addressing similar issues
application for ­consumer products
• SAP Advanced Planning & Optimiza- • Leveraged SmartOps’ in-depth knowledge
tion component of the SAP Busi- of industry best practices to implement in
ness Suite family of business 7 months and within budget
applications

Partner Ecosystem Component Engaged Next Steps

SmartOps Corporation
SmartOps Multistage Inventory Planning
& Optimization, an SAP-endorsed business
solution provided by SmartOps, an SAP®
software solution partner and member of
4 groups within the Industry Value Network
program
• Access communities and forums to find
out how others are using the solutions in
their business processes
• Reach out to other SmartOps customers
to leverage insights before upgrading

SAP Ecosystem in Action Success Story

Consumer Products
“The synergies between the SAP software and SmartOps solution help us extract www.sap.com /ecosystem
the most value from our existing SAP software investments and achieve our goals
of optimizing inventory. The results are a true testament to the value of the SAP
ecosystem.”
Steve Vielmetti, VP, Demand Planning and Supply Chain Optimization, ConAgra Foods Inc.

ConAgra Foods Inc. wanted to optimize inventory decisions while paring extent of the synergies between the
down the number of applications used to manage its supply chain. First SmartOps and SAP solutions. ConAgra
Foods ultimately chose the SmartOps
it standardized on the SAP® Supply Chain Management application and ­ solution for two reasons: SAP had vali-
SAP Advanced Planning & Optimization (SAP APO) component of the SAP dated the technical underpinning of the
Business Suite family of business applications. Then, with an SAP-endorsed SmartOps solution, and the applications
work smoothly with each other and with
business solution and support for industry-specific best practices from all of ConAgra Foods’ SAP applications.
SmartOps, it extended the value of those solutions to drive order quantities.
SmartOps is a member of four groups
Background with many brands and distribution centers, within the Industry Value Network pro-
ConAgra Foods knew it could not execute gram – including the Industry Value
ConAgra Foods Inc. is one of North inventory decisions effectively without a ­Network group for consumer products.
America’s largest packaged food consistent approach across all locations. Using industry-specific expertise gained
­companies. It also provides food and via its participation in the program,
ingredients to major foodservice estab- The company’s first order of business SmartOps enabled a fast deployment.
lishments and commercial customers was to select a single, integrated applica- Specifically, a tailored implementation
worldwide. ConAgra Foods’ brands and tion suite to replace its disparate systems. methodology along with SmartOps’
products help fill the pantries of 95% After evaluating a number of solutions ­in-depth knowledge of SAP APO and
of America’s households. from a variety of vendors, it found what it industry-specific best practices helped
was seeking. It selected the SAP Supply ConAgra Foods implement in seven
While ConAgra Foods relies on SAP® Chain Management application and the months and within budget.
software to power a number of its SAP Advanced Planning & Optimization
enterprise business processes, it was (SAP APO) component of the SAP Busi- Leveraging the SAP ecosystem also
using more than 11 disparate systems ness Suite family of business applica- enabled ConAgra Foods to maximize
– none from SAP – for supply chain tions. With that foundation in place, the value of its existing investment in
management. ConAgra Foods began to consider how to SAP software. With the SAP and
optimize its inventory. ­SmartOps solutions in place, ConAgra
Challenge Foods can dynamically and automati­
Results cally update inventory targets across
Wanting to substantially improve sales the enterprise to drive order quantities
and earnings while dramatically cutting SmartOps, an SAP software solution within the SAP applications. Since
costs, ConAgra Foods turned its atten- partner, had contacted ConAgra Foods deploying the solutions, the company
tion to supply chain performance. The during this time frame. The two compa- has increased its forecasting accuracy
company decided to start by reducing nies began to explore how SmartOps by 30% and its case-fill rate by 0.2%,
its overall inventory. Specifically, it wanted Multistage Inventory Planning & Optimiza- while reducing finished goods invento-
to reach the top quartile of the industry tion, an SAP-endorsed business solution, ries in targeted operations by 7%.
in terms of case-fill on-time rate and might address the company’s issues. SAP
forecasting accuracy. Given the sheer participated in key meetings to ensure
complexity of running a large company that ConAgra Foods understood the

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