27 May 2011 | Angeline Albert
HJ Heinz Company is to centralise its
procurement operations and establish a European supply chain hub in The
The group’s motivation for creating the hub is to drive innovation, improve
speed and quality in the supply chain, increase the expertise of the
procurement function and harness its buying power more effectively.
A spokesman for the ketchup and baked beans manufacturer told SM this would lead to an increase in the
number of buying roles, as it hires more staff as part of its supply chain
Heinz’s strategic sourcing
activities will be based in Zeist at its European headquarters, but buyers will
continue to work locally around the world to support local offices, factories
and suppliers, as well as making trips to the hub. The group’s European
sourcing operation has about 75 buyers for direct and indirect materials.
Peter Boterman, a spokesman for Heinz, said: “We are adding several
global sourcing roles to the mix to leverage our global buying power. We have
implemented several global category leader roles to enable Heinz to develop
global strategies for key commodity areas that leverage our scale and drive
productivity through the supply chain.”
“Improving our cost management is an overall objective for the years
ahead and the sourcing management team will drive this with enhanced sourcing
The creation of the hub will start in June and is expected to be
completed in the second half of 2012.
and inventory control will also be centralised at the hub. As well as the location for
Heinz’ European HQ, Zeist has been chosen for its proximity to the company’s
European ketchup factory and research centre.
The fact Heinz plans to hire more supply chain staff contrasts with the
group’s overall plan to reduce the global workforce by 800 jobs, announced in
the company’s financial results this week. The firm plans to close five
factories, but also to invest $160 million (£97.4 million) in improving