Kraft Heinz announced Thursday it would invest more than $400 million into one of the largest automated CPG distribution centers in the country.
Planned for DeKalb, Ill., the 775,000-square-foot national distribution facility will feature state-of-the-art automation and national railway access, the company said. The facility is designed to drive the company’s supply chain efficiencies while getting products to retail and foodservice customers faster than ever.
“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,” Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz, said. “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.”
With 24/7 automated storage and retrieval systems, the company said the facility will be able to drive twice the volume, distributing more than 60 percent of the company’s foodservice business and approximately 30 percent of its dry goods business. Additionally, the facility will further the company’s ESG goals by reducing its operational environmental footprint through sustainable technology and implementing solution to reduce waste.
“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,” Carlos Abrams-Rivera, executive vice president and president for Kraft Heinze North America, said. “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.”