Friday, February 23, 2024

Kraft Heinz invests $400m to build major automated distribution center

The Kraft Heinz Company is set to make a more than $400 million investment to build one of the largest automated CPG distribution centers in North America.

Located in DeKalb, Ill., the 775,000 square-foot national distribution facility will feature state-of-the-art automation technology and national railway access, enabling Kraft Heinz to drive greater supply chain efficiencies and distribute its products to retail and foodservice customers faster than ever. The facility is expected to bring more than 150 jobs to the region.

“As we continue on our journey to lead the future of food, our talented North America teams and collaborative external partners are innovating at a rapid pace to expand our supply chain capabilities,” said Carlos Abrams-Rivera, executive vice president and president, North America at Kraft Heinz.

“The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60 percent of Kraft Heinz dry goods in North America through our automated facilities. It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”

The facility’s design includes a 24/7 automated storage and retrieval system with the ability to drive twice the volume for Kraft Heinz customers, distributing more than 60 percent of the company’s foodservice business and approximately 30 percent of all dry goods.

It is also expected to contribute to Kraft Heinz’s ability to achieve its broader ESG ambitions to reduce its operational environmental footprint through the implementation of sustainable technology and solutions to reduce the waste produced at the facility and minimize its overall environmental impact.

“We’re driving end-to-end transformation across our entire supply chain, investing in automated technology and digitized solutions to increase the agility of our logistics operations,” said Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz.

“The construction of our new DeKalb distribution center is the latest example of this transformation in action. We have designed it to help ensure the delivery of our delicious, innovative and iconic products at the right time for our customers and consumers for years to come.”

Kraft Heinz has partnered with Trammell Crow Company (TCC), a global commercial real estate developer; Krusinski Construction Company (KCC), as general contractor; Daifuku, as integrated logistics automation provider; and the City of DeKalb and the DeKalb County Economic Development Corporation (DCEDC) on the development of the facility.

“We are pleased to be partnering with Kraft Heinz to develop this innovative project, working alongside KCC to deliver a state-of-the-art facility for Kraft Heinz,” said Josh Udelhofen, senior vice president with TCC Chicago.

“Located in the master planned ChicagoWest Business Center, which TCC has developed in partnership with Jerry Krusinski and his KCC team, Kraft Heinz will be located near other large-scale distribution companies in DeKalb. The area benefits from a strong labor pool, Enterprise Zone incentives, as well as an ideal location along I-88. We look forward to reaching the next construction milestone and moving this project along to deliver the facility to Kraft Heinz in 2025.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.
















Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close