**Chicago**: Kraft Heinz is revolutionising its supply chain management through AI and machine learning by implementing the ‘Agile@Scale’ initiative and partnering with Microsoft to develop the Kraft Heinz Lighthouse control tower, which enhances operational efficiency and product quality.
Kraft Heinz is undertaking a significant transformation in its supply chain management through the implementation of advanced technologies such as artificial intelligence (AI) and machine learning. Since 2022, the company has been on a journey termed “Agile@Scale”, aiming to create a fully integrated, autonomous supply chain that ensures comprehensive visibility from production to consumer delivery.
A critical component of this initiative is the development of a proprietary control tower, known as Kraft Heinz Lighthouse, built in collaboration with Microsoft. This digital ecosystem is designed to provide real-time visibility and information across all facets of the supply chain, encompassing plant operations and distribution channels.
Carlos Abrams-Rivera, the CEO of Kraft Heinz, highlighted the shift in the company’s supply chain strategy during the Consumer Analyst Group of New York Conference in February. He noted that the integration of AI and machine learning has transitioned the company’s approach from being reactive to proactive, thereby enabling data-driven decisions in real-time.
As part of its technological advancement, Kraft Heinz has created an internal AI engine that has successfully optimised manufacturing processes, including the implementation of SAP rollouts in China. The company is leveraging machine learning to reformulate the nutritional profiles of its products, focusing on enhancing the quality of ingredients. For example, the company is utilising AI to automate the inspection of cucumber quality in the production of Claussen pickles, achieving a level of precision that allows the identification of defective cucumbers among truckloads.
Bill Durbin, head of North America logistics and planning, remarked in February that the use of AI has led to a 12% increase in pickle production efficiency. He stated, “We are getting better quality from the start. That’s allowed us to get more cases out of that factory as we’ve improved that efficiency, which means better service for our customers,” indicating that the improvements have not only enhanced production but have also positively impacted customer service.
In addition to these developments, Kraft Heinz is exploring a generative AI-enabled tool called “PlantChat”. This innovation is intended to gather real-time insights from employees who are making strategic considerations across the supply chain. The aim is to automate certain processes while ensuring that human oversight remains integral, allowing team members to concentrate their efforts where they are needed most.
The company has expressed pride in the strides it has made thus far, as they continue to pursue further enhancements in their operations. A representative stated, “We are proud of the progress we’ve made, and we are just getting started,” suggesting that Kraft Heinz’s commitment to advancing its supply chain technology is ongoing.
Source: Noah Wire Services
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