Pursuing continuous replenishment made Campbell aware of the negative impact that the
overuse of price promotions can have on physical efficiency. Every January, for example, there was a
big spike in shipments of Chicken Noodle Soup because of deep discounts that Campbell was offering.
Retailers responded to the price cut by stocking up, in some cases buying a year’s supply – a practice the industry calls forward buying. Nobody won on the deal. Retailers had to pay to carry
the year’s supply, and the shipment bulge added cost throughout the Campbell system.