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Smithfield Foods selects distribution network design solution to complete network rationalization plan

Chicago September 4, 2003 LogicTools, a developer of supply chain planning solutions, announced today that leading U.S. pork processor and hog producer Smithfield Foods is completing its network rationalization plan using LogicTools' distribution network design solution, LogicNet, to optimize and analyze its decisions.

Smithfield Foods has made 25 acquisitions since 1981, transforming itself into a food company with more than $8 billion in annual sales. Today, it is the world's largest pork processor and hog producer, as well as the fifth-largest U.S. beef processor. Outside the United States, Smithfield owns subsidiaries in Canada, France, and Poland and operates joint ventures in Brazil and Mexico.

The various supply chain networks created by these acquisitions requires analysis to see where synergies can be found and where changes are needed, according to Smithfield. The current project involves the merging of three different networks.

First, data was collected from different sources for every network. Then, the project team built three baseline models and a combined model for optimization. Smithfield said it hoped these efforts will lead to a better understanding of the benefits of a combined network and the transition to a new, more efficient model.

"Though we have attempted to analyze synergies among our various networks in the past, we have had success in producing quality results by using LogicTools' strategic network design solution," said Curt Hansen, director, Distribution Services at Smithfield.

Consumer goods companies and, in particular, food companies of various sizes use LogicTools' solutions, including ConAgra, Del Monte, Kraft Foods, Sun-Maid Growers and Welch's.