Kraft Heinz is utilizing advanced technologies such as artificial intelligence and machine learning, along with a dedicated control tower, to enhance the efficiency, quality, and visibility of its supply chain.
The company aims to establish a self-driving, integrated supply chain with complete transparency from the farm to the consumer’s plate, as stated by a company representative.
Under the initiative called “Agile@Scale” initiated in 2022, Kraft Heinz has been focusing on upgrading its technological capabilities to achieve an autonomous supply chain.
A bespoke control tower, developed in collaboration with Microsoft and known as Kraft Heinz Lighthouse, serves as the central hub of the company’s digital ecosystem. This control tower provides real-time data and visibility throughout the supply chain, encompassing plant operations and distribution channels.
The shift towards data-driven decision-making in real time has enabled Kraft Heinz to transition from a reactive to a proactive approach in managing its supply chain, mentioned CEO Carlos Abrams-Rivera at the Consumer Analyst Group of New York Conference.
Furthermore, Kraft Heinz is experimenting with AI, machine learning, and automation technologies to enhance production efficiency and ingredient quality. The company has developed an internal AI engine to optimize manufacturing processes and streamline operations in China.
At the ingredient level, Kraft Heinz is utilizing a machine learning model to improve the nutritional profiles of its products. The company’s internal AI capabilities are also being leveraged to enhance the quality of ingredients used in its products, such as automating cucumber quality inspections for Claussen pickles production.
Through the implementation of AI, Kraft Heinz has increased pickle production efficiency by 12%, resulting in improved product quality and service for customers, according to Bill Durbin, head of North America logistics and planning.
Kraft Heinz is also piloting a generative AI-enabled tool called “PlantChat” to gather real-time insights from employees involved in strategic decision-making across the supply chain.
Despite the significant progress made in overhauling its supply chain, Kraft Heinz remains committed to pursuing further enhancements to support its overall business transformation.
“We are pleased with the advancements we have achieved so far, but we are only at the beginning of our journey,” the spokesperson emphasized.