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2006 INNOVATION AWARD WINNERS MANAGE UNSALEABLES AT EVERY POINT IN THE SUPPLY CHAIN


July 13, 2006, Charleston, S.C. – The Grocery Manufacturers Association (GMA) and the Food Marketing Institute (FMI) today announced the 2006 Unsaleables Innovation Award winners, exemplary companies who worked across industries to reduce the incidence of unsaleables. Two pairs of companies – H-E-B and Carolina Supply Chain Services (CSCS), a cls company, and Heinz U.S. Consumer Products and GENCO Damage Research – garnered recognition this year.

“We congratulate all four companies on their achievement, and hope their experience and learnings will continue to benefit them and the entire CPG industry,” FMI Senior Director of Industry Relations Patrick Walsh said. “The award winners recognized that the most successful unsaleables management practices analyze performance across divisions and take accountability for inefficiencies. Minimizing unsaleables in the supply chain remains a shared process, which is why we value the outcomes celebrated through this award.”

H-E-B and CSCS implemented programs that changed the processes, procedures, private label packaging and policy that were detrimental to the supply chain, ultimately reducing unsaleables by 50 percent as a percentage of sales. H-E-B tracked the reductions in unsaleables across multiple divisions and found some performed better than others.

Similarly, Heinz worked with GENCO to identify root causes of unsaleables, instituting an aggressive goal to reduce them by 40 percent. In the first year, Heinz trimmed unsaleables by 23 percent and projected an additional 25 percent reduction to meet their goal in just two years. “Project MUDA,” or “waste” in Japanese, is a multi-dimensional operation that impacts all Heinz projects.

“GMA and FMI have consistently supported and promoted industry work that recognizes effective supply chain processes,” Karin Croft, senior director of industry affairs at GMA, said. “H-E-B and Heinz saw initial cost benefits, but the most significant impact was adopting missions to eliminate unsaleables in their corporate strategies.”

GMA and FMI announced the Innovation Award winners at the Joint Industry Unsaleables Management Conference, an event dedicated to finding solutions to unsaleables in the supply chain.

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Based in Washington, D.C., the Grocery Manufacturers Association is the voice of more than 300 leading food, beverage and consumer product companies that sustain and enhance the quality of life for hundreds of millions of people in the United States and around the globe.

Founded in 1908, GMA is an active, vocal advocate for its member companies and a trusted source of information about the industry and the products consumers rely on and enjoy every day. The association and its member companies are committed to meeting the needs of consumers through product innovation, responsible business practices and effective public policy solutions developed through a genuine partnership with policymakers and other stakeholders.

In keeping with its founding principles, GMA helps its members produce safe products through a strong and ongoing commitment to scientific research, testing and evaluation and to providing consumers with the products, tools and information they need to achieve a healthy diet and an active lifestyle. The food, beverage and consumer packaged goods industry in the United States generates sales of $2.1 trillion annually, employs 14 million workers and contributes $1 trillion in added value to the economy every year.
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