NEW YORK -- Campbell Sales Co. plans to be shipping nearly half of its volume by next summer via continuous replenishment, according to a company executive. "We're trying to target up to the mid-40 [percent] range. If you look at a chart of the top 20 customers in the country, they're all on [a continuous replenishment program] in one form or another," said Bill Boundy, director of category management and customer analysis for the Camden, N.J.-based firm. Campbell today has 35% of its volume on CRP, he said, speaking here at a promotion conference sponsored by the SPAR Group., Tarrytown, N.Y., and IBC USA Conferences, Southborough, Mass.
"This has been a terrific program for us," he said. According to Boundy, the purpose of CRP is to reduce inventory, smooth out shipments and improve customer service.
He presented actual results of the program in the form of a four-customer composite in which turns almost tripled, inventory reduced from 4.4 weeks to 1.7 weeks and customer service improved.