Client:Â Kraft Foods Inc. (now Kraft Heinz Company) is one of the largest U.S. food and beverage companies, known for iconic household brands such as Kraft (cheese), Cadbury, Jacobs, Maxwell House, Oreo, and Oscar Mayer.
Challenge: Kraft Foods’ division responsible for Kraft Singles, individually wrapped processed cheese slices, sought an application to optimize raw cheese sourcing from daily auctions while maintaining the taste and quality standards of their product. Processed cheese requires blending various types of raw cheeses with other ingredients, but fluctuating auction prices and strict volume targets presented two core challenges:
- Securing raw cheese at the lowest possible cost, in volumes aligned with demand-driven production targets.
- Purchasing the optimal mix of raw ingredients to meet product quality standards as defined by food scientists.
Solution: Leveraging SSI’s expertise in supply chain optimization and advanced analytics, a specialized application was developed for Kraft Foods. This tool enabled efficient raw ingredient sourcing by predicting price variances and providing prescriptive analytics to guide purchasing decisions. The analytics model integrated key constraints to align purchase volumes with production planning and ensure quality consistency.
Result: SSI’s advanced analytics solution allowed Kraft Foods to adopt a cost-effective approach to sourcing materials for Kraft Singles. This application delivered immediate cost savings, enhanced enterprise planning, and simplified the complex process of optimal material selection, supporting both quality and profitability.
