It is hard not to know about Kellog’s. Also known as the “Kellog Company”, the American cooperation is most famous for producing and selling cereals, amongst lots of other convenience foods. In this blog post, we are exploring how Kellog’s products are being delivered from their manufacturing locations (18 in total) and delivered in more than 180 countries all over the world. We will also have a closer look the Spanish contribution.
Kellog’s is currently implementing a new supply chain infrastructure, which should, accourding to the company, enable it to save up to $475 million a year by 2018 (https://www.tradegecko.com/blog/supply-chain-management-factory-supermarket-shelves-kelloggs).
Therefore, the supply chain of Kellog’s includes all activities, from developing the product to delivering to the final consumer. Mainly, the supply chain of Kellog’s follow the lean manufacturing approach to streamline processes and eliminate waste. But how is this lean manufacturing implemented?
The supply chain in its industry is normally structured into three different sectors: The primary sector, which is responsible for sourcing raw materials; the secondary sector, which is responsible for manufacturing the raw material and for the shipment to wholesalers and warehouses and the tertiary sector, which is the services sector of the companies in order to improve business processes along the chain.
Having described Kellog’s in the introduction, we can subsume that Kellog’s is most active in the secondary sector. It is a tough position in the industry and difficult to produce margins and therefore only logical to introduce the lean manufacturing system.
The logistic department of Kellogg’s in Spain supports part of Europe (70% of the manufactured products are send to more than 23 countries). The factory is composed by a factory in Valls, Tarragona, which is able to store 30.000 pallets and it is able to sort the products into two different lines, one for normal temperature and the other control one (for the products with chocolate). The factory is a good display of the technology and innovation used in the production process of Kellog’s. The company has computerized stock-holding systems integrated to ensure delivery on time with minimal overproduction, enabling the company to set competitive prices.
Further, Kellogg’s introduced new technologies in its logistic products, making its distribution even more effective. One of the new technologies are the new labs GS1. They enable a They faster the reception of the orders. Check this video for know more about GS1 and Kellogg’s https://www.youtube.com/watch?v=EEikcbcGWJo.
One of the main features of its logistic products is the capacity of adopting the products depending of the clients necessities (see the importance of the relationbetween marketing and logistics). Besides, Kellogg’sdoes not only transport products to the supermarket but also to petrol stations, hotels, hospitals, etc. The transportation is carried out by trucks on a national level, but the company also usesmarine shipments, depending on what is best for their clients. Kellogg’s is partnering for transportation with companies such as DHL, ID Logistic, Carreras, Sertrans, Azcar andKuehne + Nagel.
I hope you enjoyed the blog post. If you want to know all the information in detail, you can find further information here.
ANDREA RODRÍGUEZ PERIS.