Conagra improves supply chain visibility and shop floor connectivity using integrated Microsoft solutions

Accurate forecasting and supply chain visibility are critical in delivering a great experience to Conagra’s customers and consumers. Even before the COVID-19 pandemic caused global supply issues and labor shortages, Conagra was looking for ways to better predict demand and monitor the entire supply chain while optimizing its processes for efficiency and productivity. 

The company turned to Microsoft cloud technology and used Microsoft Azure to digitize its supply chain, make shop floors more connected with Internet of Things (IoT) devices, improve organization-wide visibility, and facilitate employee satisfaction. 

Adapting to and anticipating rapidly changing supply and demand 

Headquartered in Chicago, Conagra combines a rich heritage of making great food with a sharpened focus on innovation, offering brands such as Birds Eye, Healthy Choice, Gardein, and Slim Jim. 

The company had been working on its digital transformation for several years when supply chain issues due to the COVID-19 pandemic presented new challenges for consumer packaged goods companies. Meanwhile, global inflation presented a challenging external environment. Conagra embraced these obstacles and turned to Microsoft technology such as AI, machine learning, and data analytics to optimize its supply chain for efficiency while improving operational visibility. “The solution had to be fast, be able to change in real time, and do some of the work for us,” says Lance Maddex, Vice President of Supply Chain Planning at Conagra. 

Conagra wanted to provide superior data and insights to its frontline workers and better position itself to handle supply chain and labor challenges. It began engaging with Microsoft in 2020 and immediately adopted AI and machine learning models backed by Azure. “We created hundreds of thousands of models using an abundance of data to accurately predict demand, first at the category level, then at the brand level, and finally at the item level,” says Azeem Kapadia, Head of Demand Forecasting and Digital Solutions at Conagra. 

The company underwent a comprehensive modernization using Microsoft solutions, creating opportunities to use its data with AI and machine learning models to drive insights and deliver value to customers. And it’s achieving its strategic priorities for fiscal year 2025 quicker than anticipated. “The collaboration with Microsoft has been tremendous,” says Vincent Shorter, Vice President of IT for Supply Chain, Finance, and Global Business Services at Conagra. “The Microsoft team brings great solutions to the table and, equally importantly, shares with us how it uses its products to run its supply chain.” 

Improving visibility and forecasting on Azure

As part of its digital transformation, Conagra developed an IoT solution that consolidates reports and alerts in a single dashboard. Called Connected Shop Floor, it connects devices to the dashboard using Azure IoT Hub to predict maintenance and facilitate data collection and information sharing. The company also uses data analytics to identify opportunities to reduce energy waste and save on costs. 

Using its Connected Shop Floor, Conagra has already achieved 30 percent greater growth output of packaged goods at one of its facilities. “On Azure, we can use AI and machine learning to look at a production line, identify deviations in the product, and correct them,” says Shorter. The company is also creating richer insights into activity on the shop floor using Microsoft Power BI. By improving visibility, the company increased its production capacity by 20 percent while minimizing disruptions. “We’re using Connected Shop Floor to drive year-over-year cost savings,” says Jeff Kraimer, Waseca Plant Manager for Conagra. “We can offset some of the inflation while significantly improving our cost per pound.” 

To improve supply chain analytics, forecasting, and management, Conagra creates hundreds of thousands of machine learning models and stores that data affordably for processing and analytics by using Azure Data Lake as its primary cloud storage solution. Then, the company uses self-learning model competition to continually challenge the system and improve its accuracy. 

With more accurate predictions, the company can improve inventory management, reduce out-of-stock items, and save on costs. “We’re transforming demand planning and the supply chain to create a robust process powered by AI and machine learning,” says Kapadia. “We’re able to react quicker than we could in the past.” 

Enhancing collaboration and productivity by investing in workers 

The company’s digitized supply chain management systems have control tower functionality that improves collaboration and productivity while reducing costs. “The control tower gives us visibility across our entire network,” says Shorter. “If we need to move a shipment due to weather or another factor, we can do it easily.” With better insights for frontline workers and alerts for each late shipment, Conagra can correct an issue before it becomes a problem. This is key for decreasing manual tasks and enhancing employees’ experiences. The company is also using Microsoft Teams in its plants to collaborate in real time and assign actions to speed up the resolution of any issues. “We’re using Azure to put digitization in the hands of the folks on the shop floor,” says Shorter. As a result, Conagra has reduced its paper copying costs by 30 percent. 

By investing in training and digital skill building, Conagra gives its teams the right tools to drive growth and efficiency into the future. “We’re investing in our people,” says Shorter. “We’re upskilling our employees and building a learning environment where we all continue to grow.” 

Addressing new challenges by digitizing the supply chain 

Conagra intends to expand its use of the connected capabilities Microsoft technology provides to solve challenges and innovate at other plants. For example, it plans to build several new components of its digital infrastructure using Microsoft Power Apps. 

“We’ve always wanted to look into the future and predict demand, whether in three months or two years,” says Maddex. “But all of that was awfully manual. With our new planning solution on Azure, we can collect data from today, derive insights about long-term demand signals, and plan far into the future.”