Download Cargill Bakery Applications

Nourishing
Ideas
Nourishing
People
Cargill Confidential
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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Ø
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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
-
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
Cargill Confidential
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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