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.


Video Spotlight: 


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

Facebook
Twitter
Home Depot’s Dallas DC: Running on Hydrogen

Home Depot’s Dallas DC: Running on Hydrogen

Home Depot is partnering with Plug Power to build a 1.5 million square foot distribution center in Dallas, Texas.  The new distribution center will use Plug Power’s zero-emission hydrogen fuel cell systems to power material handling equipment such as forklifts.

The fuel cell systems also become the infrastructure for storing, compressing, and dispensing hydrogen fuel.  The partnership is heralded as a fulfillment of Home Depot’s sustainability commitment to its supply chain and operations.


Video Spotlight: 


This post is based on the Hydrogen Fuel News article, Home Depot to build zero-emission hydrogen fuel cell powered Dallas distribution center, by Angie Bergenson,  February 18, 2021, and the YouTube videos in the Spotlight. Image source: Syda Productions/Shutterstock

Discussion Questions:

1. What is Home Depot’s sustainability strategy and goal?

Guidance: Home Depot’s sustainability strategy is to reduce the environmental footprint for its supply chain and operations.  The goal is to leverage the value and environmental advantage of Continue reading

Facebook
Twitter
Cargill Expands Into Plant-Based Burgers

Cargill Expands Into Plant-Based Burgers

Cargill is competing with Beyond Meat and Impossible Foods in the imitation meat market. The company is offering both pea and soy protein-based hamburger patties, and ground “fake meat” products, beginning in April 2020.

Cargill has invested $100 million in pea-protein producer Puris since January 2018, extending its role as a major crop supplier to a plant-based food producer.


Video Spotlight: New plant-based hamburger patties by food behemoth Cargill to launch soon (Feb 27, 2020, The Straits Times)


This post is based on the Reuters article, Cargill to challenge Beyond Meat, Impossible Foods with new plant-based burger, by Tom Polansek, February 24, 2020, and the YouTube video featured in the Video Spotlight. Image source: Shutterstock/rossella.

Discussion Questions:

1. What demand factors influence Cargill’s decision to be a plant-based food producer?

Guidance: The demand for plant-based foods is growing as consumers want meat alternatives for health reasons, and to show concern for animal welfare and environmental damage from livestock farming.

2. Comment on Cargill’s entry in the imitation meat from a supply chain strategy perspective.

Guidance: Cargill is developing an effective and efficient vertically integrated supply chain in imitation meat by supplying its own Continue reading

Facebook
Twitter