Supply Chain Management to the Rescue

17.03.2010
It was an otherwise ordinary Thursday night in February 2008 when Imperial Sugar CIO George Muller got the call. "There had been an accident. People were hurt," Muller remembers. Some died. "As more and more of the details started to come out, it was horrific."

In the days following the explosion at the company's Port Wentworth, Ga., refinery, CEO John Sheptor implored his executives to lead with their hearts, not their heads; efforts focused on helping affected employees and their families. But the $522 million sugar refiner-the third largest in the United States-had customer obligations as well. The disaster destroyed approximately 60 percent of its production capacity overnight. It wasn't clear when-or if-the plant would operate again.

Imperial Sugar had already weathered some major challenges- , divestiture, new management. The Port Wentworth tragedy was the hardest Muller had faced. "Not too many manufacturing companies can withstand that kind of impact to their business and survive," he says.

The Georgia refinery remained offline for twenty months. "We didn't have any safety stockpiles," says Muller. "We were scurrying to fulfill as many orders as we could."

Some sugar was imported through its joint venture with Mexican refiner Ingenios Santos, but it wasn't enough. "We disappointed many customers," Muller says. He credits supply-chain systems-particularly demand-management software-with helping to make the best of available resources.

In 1998, Imperial Sugar implemented an all-in-one PeopleSoft , in lieu of best-of-breed software, to manage 20-odd business processes. After several upgrades, it was clear . When large beverage and food manufacturers sign an annual contract, Imperial Sugar has to predict how that demand will play out based on seasonal and consumer cycles. "Supply chain is at the heart of our business," says Muller. "For us, it's a differentiator. It's why customers come back."