Kraft Heinz Uses AI to boost its supply chain performance
Kraft Heinz have been able to add $30 Million in sales with the application of artificial intelligence to its supply chain visibility, the company said in an investor presentation last week. The food manufacturer has used AI to drive operational priorities as well as automate service risk identification and operator alerts. To that end, Kraft Heinz has reduced its operator alerts by 42% with the technology, the company said. Kraft Heinz’s service levels have steadily improved since September as the company focuses on supply recovery. Case fill rates in March were up by more than five percentage points to a little over 95%.
“We are improving our planning, our service levels, reducing waste, reducing times.”- Miguel Patricio (Kraft Heinz CEO)
Patricio pointed to a partnership with Microsoft and its Azure cloud service to help digitize its supply chain. It includes a supply chain “control tower” built to provide real-time visibility into plant operations and automation of distribution across Kraft Heinz’s product categories. The initiative represents one of the food company’s largest technology investments, according to press release from the announcement last April.
With the company expecting higher discounting in the market, Carlos Abrams-Rivera, EVP and President of Kraft Heinz’s North American zone, noted that Kraft Heinz has developed a trade management system that provides management.
“real-time access to essentially over 10,000 promotional events.”
The system also provides the company with digital tools and data analytics that provide “insights and recommendations in a very simple way” around price promotions, he added.
At Nucleus, we can't help but feel that AI is going to fundamentally change almost all industries, so it's essential to keep track of what is happening in the space.