USA- Kraft Heinz has introduced a new distribution (DC) facility in Lathrop, California in an effort to decrease its carbon footprint and increase fill rates for consumers.
The state-of-the-art distribution center’s goal is to lessen the company’s environmental impact while bringing items to market more quickly and effectively.
The DC, which was formally inaugurated in June, was constructed by logistics real estate giant Prologis, who is leasing it to Kraft Heinz.
It has 457,000 square feet of dry storage, 93 dock-door positions, six rail-door positions, 150,000 square feet of cold storage, 37,000 square feet of ambient-conditioned storage, and charging stations for electric yard vehicles.
Ryder System, Inc., a logistics and transportation company, will oversee daily operations.
The structure offers new capabilities, including as the business’s first CO2 refrigeration technology, and consolidates and relocates Kraft Heinz’s Stockton, California, distribution operations.
It also includes; six railcar integrated docks serviced by Union Pacific, a permanent building back-up generator, electric vehicle (EV) yard truck infrastructure, and solar panels.
The structure will go forward as an example of infrastructure. According to a Prologis representative, Ryder anticipates hiring about 100 more staff members.
According to Mitch Arends, the head of North American Operations at Kraft Heinz, some of the company’s other long-standing distribution sites in northern California will be integrated and relocated to the new building.
The original Lathrop facility, a safety net for tomato production, will remain open while the Stockton Dry and Stockton Refrigerated facilities will shut down.
Arends added that a number of operational features outlined in Kraft Heinz’s 2020 operational overhaul plan have been incorporated into the new facility.
In order to support its tomato industry, he said, this includes establishing considerable rail capabilities through six rail terminals as well as outbound rail capabilities.
Earlier, Kraft Heinz entered into a definitive agreement to sell its B2B powdered cheese business to Irish ingredients major Kerry Group for US$107.5million.
The transaction also includes Kraft Heinz’s powdered cheese manufacturing facility in Albany, Minnesota. The 62 employees at the location will be transferred from Kraft Heinz to Kerry.
Kraft Heinz also recently partnered with Danone in continuous investment in first-party data capabilities to increase the ability to understand consumer preferences amid shifting privacy regulations.
Both companies are leveraging data-enablement platform provider LiveRamp’s Safe Haven environment to access segment and transaction-level data from IRI.
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