Kellogg's

Lean solutions leverage cost and efficiency savings for Kellogg’s

Kellogg’s is an internationally recognised brand – the leading producer of breakfast cereals – with manufacturing bases in 18 countries and a consumer base encompassing 180 countries. A moment of serendipity led to brothers, W K Kellogg and Dr John Harvey Kellogg creating the world-famous corn flake and with it, a breakfast institution. Kellogg’s Corn Flakes have now been a staple part of people’s breakfasts for over a hundred years.

Delivering quantifiable benefits

• Kellogg’s was looking to make a 6% global cost saving, and every area of their business came under scrutiny with regard to its efficiency of operation and overall contribution to margin. They incorporated lean working practices to bring costs down across the board, and they looked to their new logistics provider – TDG – to do the same.
• TDG’s suggestion to deliver Kellogg’s goods together with another of TDG’s customer’s goods got Kellogg’s efficiency savings off to a great start. It showed both companies’ commitment to cut CO2 emissions – to a tune of 160,000kgs (equivalent to the carbon output of around 270 households a year).
• TDG keeps a careful eye on indirect hours – making sure that unworked hours are kept to an absolute minimum. That is a constant hazard in a warehouse environment where expected deliveries may not arrive on time, therefore staff are left waiting. TDG works hard to ensure that there is always secondary work available for people to fill in their time productively.

“We’ve taken things step by step, tested everything we do an have developed a shared understanding of what we want to achieve. The whole package delivers meaningful savings for us, as well as the environmental and efficiency benefits achieved”

Colin Ridler, Supply Chain Director, Kellogg’s

Contact us to discuss how our supply chain management experience in this case may be relevant to your business.