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.
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%.