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.
- Hormel CEO: Planters acquisition ‘checks all the boxes for us’ (Feb 11, 2021, CNBC Television)
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
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