Success story

The Kraft Heinz Company creates a recipe for supply chain success.

Logility helped The Kraft Heinz Company optimize inventory, increase service levels, lower costs, improve agility, maximize opportunity, minimize risk and help it to achieve predictable results throughout the organization.

-10% Icon arrow down

Overall inventory reduction

2% Icon arrow up

Improved service levels

$15M – $20M

Achieved in savings

-10% Icon arrow down

Overall inventory reduction

2% Icon arrow up

Improved service levels

$15M – $20M

Achieved in savings

Challenges

The Kraft Heinz Company is the fifth largest food and beverage company in the world and has been a global leader for more than 100 years. A globally trusted company, Kraft Heinz provides high-quality, great-tasting, nutritional products for all eating occasions whether at home, in restaurants or on the go. 

The Kraft Heinz Company manages a large number of SKUs throughout a complex supply chain network, with several highly seasonal products with short shelf-life and high obsolescence, and frequent new product introductions and promotions. With this level of complexity, the company needed to improve working capital turnovers and cut costs while maintaining service levels. 

A large product portfolio

Kraft Heinz manages a complex, SKU-heavy network.

Fresh and Short Shel-Life Food

Kraft Heinz product lines include many short-shelf-life, high-obsolescence products.

Staying competitive

Staying competitive means new product introductions and frequent promotions.

Maintaining service levels

The complexities required improvements in working capital turnovers and cost reductions without compromising service levels.

Solutions

The Kraft Heinz Company implemented Logility Inventory Optimization and created a standard, centralized process for strategic planning and setting safety stock targets across its multi-echelon supply chain. As well as optimizing inventory, the company has increased service levels, lowered costs, improved agility, maximized opportunity, minimized risk and achieved predictable results throughout the organization. 

Inventory Planning and Optimization

Advanced Analytics

Results

With Logility, Kraft Heinz was able roll out the business across North America and Europe, achieve $15M – $20M in savings, and improve service levels by 2%. 

With Logility, we are improving service while simultaneously reducing inventory. It’s the best service we’ve had in five years with the lowest amount of inventory.