Kellogg's looks to supply chain to save £300 million

6 November 2013

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6 November 2013 | Gurjit Degun 

Cereal manufacturer Kellogg's aims to optimise its supply-chain infrastructure as part of a four-year plan to save up to $475 million (£294.92 million) a year by 2018.

‘Project K’ also plans to strengthen existing business in core markets, increase growth in developing and emerging markets, and drive an increased level of value-added innovation, the company said in its third quarter results.

Changes to its supply chain will include “actions designed to increase efficiency and improve margins, including the consolidation of facilities and the elimination of excess capacity”.

It will also focus on global business services to create increased productivity. “The programme will consolidate common processes or business services across multiple regions and functions,” said Kellogg’s. 

The company, famous for its brands such as Corn Flakes, Rice Krispies and Special K, said the initiative would generate a significant amount of savings, “the majority of which will be invested in key strategic areas of the business”.

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