Hormel’s One Supply Chain Initiative Unlocks Capacity

Hormel’s One Supply Chain Initiative Unlocks Capacity

Hormel Foods has succeeded in unlocking supply chain capacity to shift operations to meet higher and sustained demand for all four of its food segments. That is despite lower production volumes caused by plant closures, and despite increased costs to accommodate enhanced employee and food safety during the pandemic.

The company’s success is attributed to a supply chain initiative called One Supply Chain that sought to improve production efficiencies, integrate new capacity, and leverage strategic partnerships to increase production across the SPAM, Skippy, Hormel Commpleats, and Herdez brands.


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This post is based on the Forbes article, Hormel Foods Unlocks Supply Chain Capacity To Drive $2.5 Billion Sales Growth, by Rose Celestin, March 16, 2021, and the YouTube video in the Spotlight. Image source: gojak/iStock/Getty Images

Discussion Questions:

1. What are the production challenges that Hormel Foods faced due to COVID-19 disruptions?

Guidance: The challenges included fluctuating demand, fluctuating plant capacity utilization, changing food consumption trends, and increasing supply chain disruption costs.

2.  How did Hormel Foods respond to these production challenges?

Guidance: Hormel Foods implemented Continue reading

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Chip Shortage Puts the Brakes on Automakers

Chip Shortage Puts the Brakes on Automakers

Deliveries of full-size pickups and SUVs are delayed because of a global chip shortage caused by temporary plant closures amid the pandemic.

This shortage, coupled with port closures that prevented shipments of auto parts from unloading, has further limited truck and SUV production at General Motors and Ford.


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This post is based on the CNN article, Computer chip shortage starting to hit automakers where it hurts, by Chris Isidore, March 22, 2021, and the YouTube video in the Spotlight. Image source: Pavel Kirichenko/Shutterstock

Discussion Questions:

1. How did the chip shortage and auto parts delay affect MRP at General Motors and Ford?

Guidance: Chips and auto parts are essential dependent-demand components in vehicle production at General Motors and Ford.  Supply disruptions of dependent-demand components affect the accuracy of master production schedules, bills of materials, and inventory data because the assumption of constant lead times no longer holds.

2.  How did General Motors and Ford respond to the chip shortage and auto parts delay?

Guidance: General Motors and Ford used their chips on hand to keep Continue reading

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USPS Plans to Deliver Changes to Mail Services

USPS Plans to Deliver Changes to Mail Services

The US Postal Service (USPS) is planning a service overhaul to stem its losses.

The overhaul includes replacing one-to-three-day first-class mail with one-to-five day, consolidating mail processing and postal locations, cutting hours at some retail locations, moving more first-class mail by trucks instead of airplanes, going all-electric for last-mile delivery, and increasing postal rates.

A previous OM in the News post explained additional changes being made, as part of its overall efforts to redesign services, to cut costs and revamp USPS operations.


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This post is based on the Reuters article, U.S. Postal Service proposes revamp; plan would slow some mail, by David Shepardson, March 23, 2021, and the YouTube video in the Spotlight. Image source: Scott A. Frangos

Discussion Questions:

1. What are the issues that USPS is able to address by revamping its services?

Guidance: To address delivery delay, USPS is standardizing the first-class mail delivery requirements from one-to-three days, to one-to-five days.  To reduce costs of operations, more first-class mail will be moved by truck, mail processing and postal locations will be consolidated, and all-electric fleets will be Continue reading

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