Kraft Heinz’s Next Supply Chain Investment Is a Giant, Automated Distribution Center

The Kraft Heinz Company, the No. 20 publicly owned consumer goods company, is investing more than $400 million in a new automated CPG distribution center. 

Located in DeKalb, IL., the 775,000-square-foot national distribution facility is highlighted by innovative automation technology, enabling the company to drive supply chain efficiencies so they can distribute products faster than ever before, according to the company. 

“The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60% of Kraft Heinz dry goods in North America through our automated facilities,” said Carlos Abrams-Rivera, executive vice president and president, North America at Kraft Heinz, in a statement. 

The facility will be responsible for distributing over 60% of Heinz’s food service business and approximately 30% of all dry goods, allowing them to double their previous volume with the help of a 24/7 automated storage and retrieval system.

• See also: VF Corp. Launches New Massive Distribution Facility

For the creation of the new center, Kraft Heinz has partnered with Trammell Crow Company (TCC), Krusinski Construction Company (KCC), Daifuku, the City of DeKalb, and the DeKalb County Economic Development Corporation (DCEDC).

"As one of the world's largest food and beverage companies with global brand recognition, Kraft Heinz elevates DeKalb's position as a food processing and distribution hub,” said Paul Borek, executive director for The DeKalb County Economic Development Corporation (DCEDC).

The distribution center is also part of the company’s larger ESG ambitions and integrates sustainable technology to reduce waste created at the facility, minimizing its operational environmental impact.

“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,” said Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz.

The facility is expected to open in 2025, bringing over 150 jobs to the region.

Kraft Heinz is undergoing a multi-year transformation strategy that includes various operational restructures and transformations. As part of this, it's expanded its Agile-based strategy across all business functions and restructuring its operating model to integrate commercial and supply chain teams into their P&L ownership. 

The company also recently relocated its Canadian headquarters to downtown Toronto, a location they feel will help them attract top talent in the region and propel their agility.