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95% of its products are completely new designs for which demand forecasts often err by as much as 200%. And because the retail season is only a few months long, the company has little time to react if it misguesses the market.

In contrast, only 5% of Campbell’s products are new each year. Sales of existing products, most of which have been on the market for years, are highly predictable, allowing Campbell to achieve a nearly perfect service level by satisfying more than 98% of demand immediately from stocks of finished goods.