Daily CSR
Daily CSR

Daily CSR
Daily news about corporate social responsibility, ethics and sustainability

Tackling The Supply Chain Issue At Its Root Cause


With an open mind, Smithfield identified the areas that needs improvement and come up with a consolidated solution to improve operational efficiency.

Dailycsr.com – 27 August 2018 – Smithfield Foods Inc. is the largest “pork processor” as well as “hog producer” of the world. Like many company of this size, Smithfield Foods Inc. expanded to current size through acquisition as a result it acquired over forty of them even since its first year of 1981.
As time went by, through streamlining and consolidation, all the business units were divided into “independent operating companies”, in short IOCs, and each of them maintained their respective supply chain.
In the year of 2015, the company faced an issue with “an on-time delivery”, whereby the team of supply chain led an investigation into the matter to discover its cause. And as it could be common instance in organisations of its size, Smithfield Foods came across other issues as one led to another which was followed another and then “yet another”.
In the words of the Senior Vice President of Supply Chain at Smithfield Foods, Dennis Organ:
“Seemingly disconnected transactions will cause more issues if you don't solve the root problem”.
The solution to Smithfield’s problem came as merging all “three supply chains” to form only one which fitted in well under the initiative of “One Smithfield”, the latter being an effort to “unify the three companies and their brands under one corporate umbrella”.
The consolidated process would address the problems at their root cause besides improving the company’s “operating efficiency” while bringing down the costs and at the same time it would add to the aggressive “sustainable goals” agenda of the organisation. For further information, kindly visit: