Kraft taps Microsoft to build a more resilient supply chain

Kraft Heinz and Microsoft are partnering to develop solutions designed to enable a more resilient supply chain.

The initiative, part of Kraft’s broader digital transformation, is one of the consumer goods giant’s largest technology investments to date and a key driver of the company’s ambitious AGILE@SCALE approach.

By migrating the majority of its global data centre assets to Microsoft Azure and its ERP software to SAP on Azure, Kraft Heinz expects to reimagine its day-to-day operations, create a more collaborative supply chain, and enhance consumer experiences by using real-time predictive analytics to improve inventory transparency and anticipate consumer and channel demand.

Supply chain pressures exposed need for connected networks

Extreme pressures on end-to-end supply chains during the past two years have exposed the need for more connected and collaborative networks between suppliers, buyers, retailers, and other parties along the value chain.

And to better address supply chain disruptions, and to get products into the market faster, Kraft Heinz is leaning heavily into a digitised approach to shift the company to a more predictive strategy and rapid-response model, providing machine learning and advanced analytics to drive innovation and efficiencies across the supply chain, and build a leading tech ecosystem to benefit the entire supply chain.

“The past two years have highlighted the urgent need for digital-first supply chain solutions across every industry,” says Judson Althoff, CCO, Microsoft.

“We’re working shoulder to shoulder with Kraft Heinz, applying the power of Azure, data analytics and the industrial metaverse to co-innovate and create hybrid experiences will ultimately put goods in the hands of the retailers and consumers when they need and want them.

From supply chain control to digital twins

The two companies will create a Supply Chain Control Tower, which will act as air traffic control across Kraft Heinz’s full product portfolio, providing real-time visibility into plant operations and automation of its supply chain across 85 product categories.

Kraft will also create digital twins for its 34 owned manufacturing facilities in North America to help test and perfect solutions and processes before applying them on the plant floor. This technology, fuelled by Azure Digital Twins, will help predict outcomes that identify optimal product capacity and reduce mechanical interruptions by proactively addressing issues before they occur, with the goal of ensuring the products that reach retail shelves and consumer hands are the highest possible quality.

Finally, the two firms will create a joint Digital Innovation Officer to co-engineer new solutions that will help the company reimagine digital manufacturing and drive efficiencies with the help of hybrid experiences powered by Microsoft AI, machine learning and IoT.