One of the world’s largest food producers, US behemoth Kraft Heinz is set to shake-up its supply chain and procurement practises in a bid to save around $2bn, according to Food Business News. Senior executives have admitted that costs in its giant supply chain have gotten out of control and have identified around $1.2bn in savings from procurement and another $800m from manufacturing and logistics efficiencies. “We were not able to implement productivity initiatives to offset cost inflation. So, we lost efficiency in procurement, manufacturing and logistics. We were late to transition from integration-driven consolidation to ongoing productivity plans,” said Paulo Luiz Araujo Basilio, global chief financial officer.
