In the world of consumer packaged goods, few names carry as much weight as Kraft Heinz. With a portfolio of brands that have been staples in pantries for generations, the company faces unique challenges in maintaining efficiency across its vast supply chain. But in an age where artificial intelligence is transforming industries, Kraft Heinz is proving that even the most traditional products can benefit from cutting-edge technology.
I recently had the oppoortunity to speak with Helen Davis, Senior Vice President and Head of North America Operations at Kraft Heinz, about how the company is leveraging AI to revolutionize its operations. What I learned was both fascinating and unexpected – who knew that AI could play such a crucial role in ensuring the perfect crunch of a pickle?
The Self-Driving Supply Chain
At the heart of Kraft Heinz’s AI strategy is what Davis calls a “self-driving supply chain.” This ambitious project aims to create an anti-fragile supply chain that can adapt to disruptions in real time. “We have a lot of digital tools in every part of a supply chain,” Davis explained. “That transactional data is coming up to our cloud system, and we have our Kraft Heinz Lighthouse that sits on top of all this transactional data and really gives us visibility from farm to fork of our entire supply chain.”
This end-to-end visibility allows Kraft Heinz to anticipate and respond to changes in demand or supply disruptions more quickly than ever before. For example, when launching new products like flavored mac and cheese, the system can automatically adjust production schedules and raw material orders based on real-time consumption data.
AI And The Perfect Pickle
One of the most intriguing applications of AI at Kraft Heinz involves an unlikely subject: cucumbers. The company’s Claussen pickles are known for their freshness, going from farm to jar in less than ten days. However, achieving consistency in such a short timeframe with a natural product can be challenging.
To address this, Kraft Heinz implemented an AI vision system at its pickle factories. As Davis described, “Before it comes into the factory lines, we put AI vision systems in to understand is the density right? Is the length of the cucumber right? Is the circumference of the cucumber right? Because we need to make sure that that crunch that everybody wants in their pickles is perfect.”
This system not only ensures quality but also improves efficiency by only sending the best cucumbers to the production line. The result? Better pickles and improved service levels to customers and consumers.
Beyond Cucumbers: AI Across The Supply Chain
While the pickle example is certainly interesting, Kraft Heinz’s use of AI extends far beyond a single product line. The company is implementing AI and automation solutions across its entire supply chain, from forecasting demand to optimizing transportation.
One particularly innovative application involves using AI to generate work instructions. “We’re working on automatically generating work instructions for our team – video work instructions,” Davis shared. “So if we videotape a job, it’s all about being able to load that into a system and having it automatically generate work instructions for current and new employees in our factories.”
This use of AI not only streamlines training processes but also ensures consistency in operations across Kraft Heinz’s numerous facilities.
The Human Element In An AI-Driven Supply Chain
Despite the focus on automation and AI, Davis emphasized that the human element remains crucial to Kraft Heinz’s success. In fact, she noted that in areas where these technologies have been implemented, they’ve seen “double-digit increases in our engagement scores.”
By automating routine tasks and providing employees with better insights and decision-making tools, Kraft Heinz is freeing up its workforce to focus on more value-added activities. As Davis put it, “When you have engaged employees, they’re more focused on making the company better.”
Lessons For Other Organizations
For companies looking to emulate Kraft Heinz’s success with AI, Davis offered some key advice.
First, she stressed the importance of having the right leadership support, willingness to invest, and a culture that’s open to “intelligent failures.”
“I think what makes companies successful is you need to have the right soup,” Davis explained. “You have to have senior leadership support. You have to be willing to do the investment. And you have to be willing to fail, fail fast and pivot.” She acknowledged that this last piece can be difficult for some to accept, as people generally don’t want to fail. However, Davis emphasized the importance of “intelligent failures” – those that you can learn from and use to improve.
Beyond that, Davis highlighted the importance of having the right people and skills in place. “You have to have the right people and the right capability,” she noted, referring to her team’s ability to build proprietary algorithms for their decision intelligence system.
Partnerships also play a crucial role. Kraft Heinz has collaborated with tech giants like Microsoft and specialized AI firms such as Lumachain and Aera Technology to accelerate its digital transformation. As Davis noted, “Those partnerships are important because we can’t do this by ourselves. And having them by our side really helps accelerate these use cases.”
Davis also emphasized the importance of integrating new technologies into existing operational excellence systems. For Kraft Heinz, this meant incorporating AI recommendations into their management routines, such as the Kraft Heinz Management System in factories and the Logistics Operating System in planning and logistics. This integration ensures that the insights generated by AI are actually used to drive improvements.
Finally, Davis stressed the importance of focusing on employee engagement throughout the AI implementation process. By using AI to deprioritize non-value-added work, Kraft Heinz has seen significant increases in employee engagement scores. This underscores the fact that successful AI implementation isn’t just about the technology – it’s about how that technology empowers and engages your workforce.
The Future Of AI At Kraft Heinz
Looking ahead, Kraft Heinz is exploring even more advanced applications of AI. The company is piloting the use of generative AI to provide real-time insights and instructions to employees across its North America supply chain. They’re also looking at ways to further automate maintenance processes, with AI systems that can not only predict when equipment needs servicing but also automatically generate and assign work orders.
This transformation at Kraft Heinz signals a broader shift in the consumer goods industry. As AI continues to permeate every aspect of production and distribution, we can expect to see more companies following suit, leveraging advanced technologies to improve quality, efficiency, and sustainability.
The next time you reach for a jar of Claussen pickles or a box of Kraft Mac & Cheese, consider the complex, AI-driven supply chain that brought it to your local store. It’s a testament to how artificial intelligence is reshaping even the most familiar aspects of our daily lives – and our economy.
