1. 1Dave BieggerDriving SupplyChain ProcessImprovement:Trials andTribulationsSr. Vice President, Global Supply ChainCampbell Soup Company

2. 2Personal Background Iowa State University BS Chemical Engineering Procter & Gamble (~24 years) Campbell Soup Company (10 years) SVP Global Supply Chain VP N.A. Supply Chain VP Global SC Strategy and Operational Excellence 3. 3 4. 4Agenda Background on Campbell Soup Company Perspective on SC Insights Rating Path to improvement Challenges Learnings 5. 5Campbell By the Numbers World Headquarters based in Camden, NJ Approximately 20,000 employees worldwide A growing global food company with annual salesof more than $8 billion Powerful brands in three categories: Soup & Simple Meals, Snacks and Healthy Beverages U.S. market leader in wet soup Products available in more than 100 countries Launching over 200 new products in F15 6. 6MostpeopleknowCampbellas this 7. 7 8. 8Our Portfolio 9. 9Our HistoryJoseph Campbell, a fruit merchant, andAbraham Anderson, an icebox manufacturer,form partnership to can tomatoes, vegetables,jellies, condiments and mincemeat. Firstplant opens inCamden, N.J.Dr. John T. Dorrance developsformula for condensed soups.One of the original varieties isTomato soup.Campbells iconic ChickenNoodle Soup is introducedto consumers.Campbell acquiresPepperidge Farm Inc.Campbell acquires PaceFoods, Inc., maker of leadingbrand of Mexican sauces.Campbell fully acquires Arnott'sLimited of Australia, one of thelargest biscuit manufacturers inthe world.Prego pasta sauce, basedon a family favorite of aCampbell chef, isintroduced nationally.V8 Vegetable juicebusiness is acquired.Campbell acquires PlumOrganics, the #2 organic babyfood company in the U.S.CampbellacquiresBolthouseFarms.Campbell acquiresKelsen Group, a Denmark-basedcompany, whichproduces baked snacks.Divestiture of Godiva.1869 1897 1934 1948 1961 1981 1995 1997 2008 2012 2013 10. 10Campbells Fun FactsIf all the cans of Campbellssoup sold last year werelaid end-to-end, theywould encircle theEquator overAndy Warhol ateCampbells Tomato soupfor lunch every day forCampbell uses more thaneach year in its Chicken & Starssoup. In three years, Campbellproduces more stars thanare in the Milky Way 11. 11OUR PURPOSEOur purpose honors the heritage of our 145-yearcompany. Since the founding of Campbell in 1869,core beliefs have driven our company: We believe in the power of food to connectpeople Food should be good, delicious and accessible all three, without compromise We have a duty to protect the Earth; a duty tonourish and give back to our communities; and aduty to the people who bring their talents toCampbell every day 12. 12 13. 13Campbell Global Supply Chain Agriculture Procurement Engineering Manufacturing Contract Manufacturing Supply and Demand Planning Customer Service Logistics and Warehousing Quality Environmental Sustainability 14. 14Campbell Manufacturing FacilitiesCampbell SoupSupply CompanyDixon, CABolthouse OperationsBakersfield, CAPepperidge FarmBloomfield, CTCampbell SoupSupply CompanyStockton, CAPepperidge FarmWillard, OHPepperidge FarmDowners Grove, IL Ecce Panis, Inc.Pepperidge FarmLakeland, FLEast Brunswick, NJCampbell SoupSupply CompanyMaxton, NCCampbell SoupSupply CompanyNapoleon, OHCampbell SoupSupply CompanyParis, TXPepperidge FarmDenver, PAPepperidge Farm Frozen Food OperationDowningtown, PAPepperidge FarmRichmond, UTStockPotEverett, WACampbell SoupSupply CompanyMilwaukee, WIBolthouse OperationsProsser, WABolthouse FarmsCanada, Inc.Wheatley, OntarioCampbell Company of Canada, Inc.Toronto, OntarioKelsen GroupNorre Snede, DenmarkKelsen GroupRibe, DenmarkArnotts BiscuitsSelangor, MalaysiaArnotts IndonesiaJawa Baret, IndonesiaArnotts BiscuitsHuntingwood, AustraliaArnotts BiscuitsMarleston, AustraliaArnotts BiscuitsVirginia, AustraliaCampbell Soups AustraliaShepparton, Australia 15. 15SC Index (2006-2012) 16. 16Background/ChallengesPrior to rating period (8-10 years ago): Great people, great culture(people oriented, high values) Technically capable Tremendous pride Fragmented and de-centalized SC Complexity (products, processes) Non-Standard 17. 17Journey Company turnaround situation New leadership Focus on leadership and engagement External Benchmarking Talent/Culture Mix of strong internal and external, diversity Focus on collaboration and reapplication(reward/expectations) 18. 18Developed Simple and Clear One Page StrategyGoal Areas: Support Growth and Innovationwhile achieving Flat-to-DecliningTotal Delivered Cost Transform the Supply Chain to aDemand Driven Supply Network Improve/maintain Supply Chainfundamentals to world classbenchmarksStrategy Areas: Win vs Competition Win with Consumers Win with Customers Win with People Win with our Communities 19. 19Journey Started with the Basics Strengthened the Foundation Safety (standards, accountability, focus) Quality Service Reliability/Predictability Approached differently Work processes and standardization Network approach 20. 20Operational Excellence(Example of Network Approach)Network Meet World ClassMeet World Class BenchmarksLeadershipEnvironmentalMgmt &SustainabilityHealth &SafetyDemand Driven SupplyQuality &Food SafetyManagementAssetReliabilityOperationsReliabilityContinuousImprovementHighPerformanceOrganizationInnovationDeliveryExcellenceLogisticsOperationsOwner Owner Owner Owner Owner Owner Owner Owner Owner OwnerIntegrated Pillars with Process Discipline to deliver a Demand Driven Supply Network (DDSN)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #1(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #2(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Focus Area #3(Owner)Example: Visionand MissionExample:Process ControlExample: DailyDirection SettingExample:ConstraintManagementExample:Supplier QualityExample:AutonomousMaintenanceExample:Prob SolvingRCFA,6sigma,KaizenOur Functions: Finance, Engineering, Planning, Logistics and Customer Service, Human Resources, Procurement, Quality, Safety,Business Teams, Information Technology, Contract Manufacturing, Reliability, Continuous Improvementour Valuesour PrinciplesBenchmarksGrowth & InnovationwithFlat to Declining TDC 21. 21Deployed SC Burning Platform Globally Total Delivered Cost (broader focus on Margin management) Set aspirational goal: Flat to Declining year after year Educated and engaged the SC and Company leadership Provided tools and approaches Zero Loss Analysis Focused Improvement (Kaizen) Value Stream Mapping Black Belt/Green Belt program Changed behavior and mindset(holistic vs parochial) 22. 22Developed TDC/Cost Savings ModelManufacturing(% Savings of total cost)Logistics(% Savings of total cost)Product Design(% Savings of total cost)X% BreakthroughSavingsY% Base/ContinousImprovement SavingsOwner: 23. 23With Progress on the Foundation and Progresson TDC, Focused Strategically on DDSN Past Experience (P&G, Lora, etc) Value Opportunity Culture/Org ImpactConsumerInsights More cost conscious More occasionsConsumer Driven, End-to-End, Flexible & Agile Value Chain Initial doubt and resistance Freedom/Engagement Creativity/IngenuityProducts Campbells Supply ChainCustomersDistri-butionProcure-ment/MaterialsMgmt.Manufactur-ing(Make-Pack)supp-lierMgmt. More channels and formats More service requirements More customization More variety Faster speed to market Shorter lifecyclesMaximum impact will come from collaborating beyond the SC to aligncapability and investment with the right level of Product and Customer complexity 24. 24Initiated and Connected Major ProgramsSupporting DDSNOperatingStrategyVisibility andplanningOperationalExcellenceNetworkOptimizationCommonPlatformsIntegration andinterdependencyare key 25. 25Example of Common Platform/Simplification Declared the Opportunity Committed the resources and to immediate return Broke with traditional approach Simplified (eliminated non value add) Product (principle of quality) Process Equipment/Plant Results 35% less assets with same capacity and more flexibility Significant expense savings Inventory reduced Products: reduced dice sizes of meats/vegetables ~75%, total ingredients reduced 40%, common bases, etc Quality: improved products with reduced variation 26. 26Results Progress Over Rating Period Fundamentals Safety (injuries reduced by 76%) Environmental: ~20% reduction in bothwater usage & GHG emissions Strong Service improvement Reliability (efficiencies up 10%) Cost Savings increased by >30% TDC trajectory flattened in normal inflation years Network footprint (reduced number of plants by 45%) 27. 27Considerations It is a clear choice to aspire to stepchange vs incremental steady progress Greater risk obviously comes withbolder actions Good Priority Setting and monitoringOrg Capacity are key in minimizing risk 28. 28Recent Challenges Major network consolidation (network optimization) Inventory increase: Planned for and temporary (and justified) Service impacts: while planned carefully and executed well in general, hadimpact on Capacity/Demand ratio, warehouse and logistics stress Major Planning System implementation Scope and complexity extended transition Margin Mix due to acquisitions of high growth businesses with lower margins Trade investment trend that is now returning to historical levels 29. 29SC Index Rating Perspective SC progress at Campbell has been consistently very strongover an extended period of time SC has provided great value to the company Recent fall in rankings are due to some challenges we haveexperienced, but also heavily influenced by planned actions Appropriate choices and trade-offs can adversely impact the ratingbutthey are still the right choices Expect that we will recover fairly quickly as we we return to priorimprovement trends 30. 30Final Thoughts on the Campbell SCOngoing Journey People and Leadership make the difference(always) A solid and correct foundation is key prior tolaunching significant improvement efforts It is important for leaders to take the riskand declare breakthrough goals Incremental steps and goals will not lead tobreakthrough results Accept and minimize the risk that comeswith bolder actions