Sustainability and Stability: Kellogg Company's Transformation of Supply Chain
Technology Category
- Analytics & Modeling - Big Data Analytics
- Analytics & Modeling - Predictive Analytics
Applicable Industries
- Agriculture
- Cities & Municipalities
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Agriculture Disease & Pest Management
- Supply Chain Visibility
About The Customer
Kellogg Company is a multinational food manufacturing company with a workforce of 33,000 people. The company produces a wide range of food products in 20 countries and markets them in 180 countries. The company's customer base is diverse and global, with a significant portion being millennials who demand transparency about the origin of their food and prefer companies that align with their moral compass. The company's supply chain is extensive, involving multiple tiers and a large number of direct and indirect employees. The company is committed to sustainability and transparency in its supply chain, and it works with various partners to achieve these goals.
The Challenge
Kellogg Company, a multinational food manufacturing organization with 33,000 employees, faced a significant challenge in managing its extensive supply chain. The company produces 1,600 foods in 20 countries and markets them in 180 countries, making transparency and sustainability crucial. Alistair Hirst, SVP Global Supply Chains at Kellogg Company, emphasized the need for a stable base to build a sustainable supply chain. The company's supply chain extends to multiple tiers, making it a complex task to understand and manage the entire process. The challenge was not only to reduce greenhouse emissions or energy footprint but to ensure sustainability throughout the end-to-end supply chain. The company also had to meet the expectations of its customers, particularly millennials, who demand transparency about the origin of their food and prefer companies that align with their moral compass.
The Solution
To ensure a stable and sustainable supply chain, Hirst outlined four key areas that Kellogg Company needed to focus on. Firstly, resilience against short-term supply shocks to react quickly and secure supply at short notice. Secondly, the ability to predict longer-term supply shocks, particularly those related to climate change. Thirdly, the use of rich data or predictive analytics to anticipate future trends and stabilize the supply chain. Lastly, the formation of partnerships with organizations like the World Bank, Sedex, and SGS to understand their supply chain and sustainability agenda better. The company is also working on four key areas in its supply chain: Climate Smart Agriculture, Climate and Natural Resource Conservation, Human Rights, and Reputation. They are partnering with farmers, working on conservation efforts, ensuring suppliers comply with their global code of ethics, and maintaining their reputation through audits and continuous improvement.
Operational Impact
Quantitative Benefit
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