Transcript Cargill Bakery Applications

Nourishing
Ideas
Nourishing
People
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Cargill at a Glance
Cargill Founded
1865
Ø Grain
warehouse in
Iowa
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Core
Capabilities
Developed
ØRisk Mgmt
ØSupply Chain
Mgmt
ØGlobal Mgmt
Core Value
Established
ØTrustworthy
ØCreative
ØEnterprising
TODAY
$59 Billion+ in Gross
Sales
Over $1 Billion in Net
Earnings
Net Worth >$9 Billion
97,000 Employees in
1000 Locations
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Core Behaviors
ØCustomer Focused
ØInnovative
ØHigh Performing
Integrated Food
Products and Food
Service Company
Geographic Presence
North America
37% of net worth
50,889 employees
Latin America
16% of net worth
15,123 employees
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Europe/Africa
36% of net worth
15,763 employees
Asia/Pacific
11% of net worth
15,186 employees
Strengths of Cargill’s Businesses
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Reputation for integrity
Financial soundness
Knowledge of the food system
Building for long-term success
Culture & Behaviors
• Ethics/Guiding
Principles
• Total Quality
• Food Safety
• Customer Oriented
• High Performance
• Innovation
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• Engaged and
empowered work force
• Customer/Consumer
Insight
• Community
Involvement
Changing Market Environment
• Agri-food Industry faced with significant
changes and challenges
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Increasingly complex business environment; faster pace of change
Customers/competitors consolidating
Greater reliance on outsourcing/more sophisticated suppliers
Pressure to deliver top line growth through new product intros vs.
product extensions
– Shifting power to consumers (health, wellness, taste, convenience)
– Margin pressures; over capacity
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Corporate Strategy Guidelines
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Private ownership
Focus on agriculture and food
A+ credit rating
Operating managers
Grow our competencies
Maintain basic beliefs
Year Four of a 10-Year Plan
Strategic Action
“By 2010, Cargill will be the recognized
global leader in providing our agricultural
and food customers with solutions that
enable them to succeed in their businesses.”
-Warren Staley memo, February, 1999
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Our Plan – Strategic Action
Capabilities
Commodities
Transactions
Broad
Diversification
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Customer Needs
Solutions
Relationships
Agri-food chain as our
center of gravity
10 year journey, long-term perspective, but short-term urgency
Internal education: explore, discover, create, deliver
Cross-organization collaboration and transparency
Restructuring and aggressive cost management
Re-focus our portfolio on Ag/Food (exit Rubber, buy Agribrands,
form Food System Design)
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Corporate
Business Unit Focus
Employee Focus
Collective
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Three Areas of Strategic Activity
Cargill will provide Food Chain Customer Solutions in the
following areas:
Customer
Solutions
Supply Chain
Management
Basic Nutrition
Building Blocks
Food
Applications
Nutrition
&
Health
Existing Cargill Food Chains
These new areas of activity would need to be incorporated into Cargill’s
existing businesses.
Source: Cargill Strategic Intent Presentation, June 2000
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Innovative Solutions
Women’s and Men’s Bread with
AdvantaSoyTM
Energize Sport Drink with
Trehalose
Performance Breakfast
Soy Signature Bar
NUT-NOTSTM
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Outback Steakhouse
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The world's first manmade fiber from 100%
annually renewable
resources.
A fiber that not only
touches your skin but also
touches your soul.
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Focus on Our Strategic Accounts
General
Mills
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Success Story - Safety
10
225
200
Cargill
reached a
safety
milestone
8
175
150
6
125
100
4
75
50
2
25
0
0
1993
1995
1997
Safety Index
1999
2001
2003
Million hours worked
Cargill’s safety index measures the frequency and severity of work-related
injuries based on the number of hours worked. It decreased to a record 1.7 in
fiscal 2003.
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Supply Chain Management
The Customer Satisfaction/
Efficiency Paradox
March 2, 2004
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Grain Distribution Example
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Grain
Technology
Processing
Materials/Cash
Information
originated from country
• Transported through elevator system
• Exported and distributed to the customer
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Manufacturing
Distribution
Risk Management
Customer
End User/
Consumer
Product Assurance
Grain Processing Example
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Grain
Technology
Processing
Materials/Cash
Information
contract grown and originated from country
• Transported through elevator system
• Processed into food ingredient
• Distributed to food manufacturer
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Manufacturing
Distribution
Risk Management
Customer
End User/
Consumer
Product Assurance
Fully Integrated Meat Example
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Specialty
Technology
Processing
Materials/Cash
Manufacturing
Information
formulation fed to animals in feedlot
• Animals tracked through feedlot to slaughter plant
• Processed to product specific specifications
• Distributed to further processing facility
• Distributed to grocery or food service channel
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Distribution
Risk Management
Customer
End User/
Consumer
Product Assurance
Grain Distribution Discussion
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Grain
Technology
Processing
Materials/Cash
Manufacturing
Information
Distribution
Customer
End User/
Consumer
Product Assurance
Risk Management
originated from country
• Transported through elevator system
• Exported and distributed to the customer
Satisfy customer’s expectation of ‘guaranteed free of’ at low cost
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Grain Processing Discussion
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Grain
Technology
Processing
Materials/Cash
Manufacturing
Information
Distribution
Customer
Risk Management
contract grown and originated from country
• Transported through elevator system
• Processed into food ingredient
• Distributed to food manufacturer
How to respond to customer dissatisfaction as a result of new
technology implementation?
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End User/
Consumer
Product Assurance
Fully Integrated Meat Example
New Product development
Supply Chain Optimization
Raw Material
Input
Raw Material
Production
Raw Material
Logistics/
Storage
Processes/Organization
• Specialty
Technology
Processing
Materials/Cash
Manufacturing
Information
Distribution
Customer
Risk Management
formulation fed to animals in feedlot
• Animals tracked through feedlot to slaughter plant
• Processed to product specific specifications
• Distributed to further processing facility
• Distributed to grocery or food service channel
Satisfy consumer’s demand for safe, low cost meat
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End User/
Consumer
Product Assurance
Thank you!
Jenny L. Verner
Vice President Supply Chain Management
Cargill
[email protected]
952/742-5034
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