In the world of consumer packaged goods, few names carry as much weight as Kraft Heinz. With a portfolio of brands that have been pantry staples for generations, the company faces unique challenges in maintaining efficiencies throughout its supply chain. But at a time when 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 opportunity to speak with Helen Davis, Senior Vice President and Head of North America Operations at Kraft Heinz, about how the company is using AI to revolutionize its business. What I learned was both fascinating and unexpected – who would have thought AI could play such a crucial role in ensuring the perfect crispiness of a pickle?
The self-managing 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 explains. “That transaction data comes into our cloud system, and we have our Kraft Heinz Lighthouse that sits on top of all this transaction data and gives us real visibility from farm to fork across our entire supply chain.”
This end-to-end visibility allows Kraft Heinz to anticipate and respond to changes in demand or supply disruptions faster than ever before. For example, when launching new products such as flavored macaroni 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 concerns 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 with a natural product in such a short time frame can be challenging.
To address this, Kraft Heinz implemented an AI vision system in its pickle factories. As Davis described, “Before it gets into the factory lines, we deploy AI vision systems 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 the crunch that everyone wants in their pickles is perfect.”
This system not only guarantees quality, but also improves efficiency by sending only the best cucumbers to the production line. The result? Better pickles and improved service levels for 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 implements AI and automation solutions across the supply chain, from predicting demand to optimizing transportation.
A particularly innovative application is the use of AI to generate work instructions. “We are working on automatically generating work instructions for our team – video work instructions,” says Davis. “So when we videotape a job, it’s about being able to load it into a system and 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 emphasizes 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 have seen “double-digit increases in our engagement scores.”
By automating routine tasks and providing employees with better insights and decision-making tools, Kraft Heinz frees up its workforce to focus on higher-value activities. As Davis put it, “When you have employees engaged, they are more focused on improving the business.”
Lessons for other organizations
For companies looking to emulate Kraft Heinz’s success with AI, Davis offered some key advice.
First, she emphasized the importance of the right leadership support, willingness to invest, and a culture open to “intelligent failure.”
“I think what makes companies successful is you need the right soup,” Davis explains. “You have to have the support of senior leadership. You have to be willing to make the investment. And you have to be willing to fail, fail fast and pivot.” She acknowledged that the latter may be difficult for some to accept, as people generally do not want to fail. However, Davis emphasized the importance of “intelligent failures” – mistakes you can learn from and use to improve.
In addition, Davis emphasized the importance of having the right people and skills. “You have to have the right people and the right capabilities,” she noted, referring to her team’s ability to build proprietary algorithms for their decision information system.
Partnerships also play a crucial role. Kraft Heinz has partnered with tech giants like Microsoft and specialist AI companies like Lumachain and Aera Technology to accelerate digital transformation. As Davis noted, “These partnerships are important because we can’t do this alone. And having them on our side really helps accelerate these use cases.”
Davis also emphasized the importance of integrating new technologies into existing systems for operational excellence. 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 AI generates are actually used to drive improvements.
Finally, Davis emphasized 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 underlines the fact that successful AI implementation is not just about the technology, but also 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 testing the use of generative AI to provide real-time insights and instructions to workers across its North American supply chain. They are also looking at ways to further automate maintenance processes, with AI systems that can not only predict when equipment needs maintenance, 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 manufacturing and distribution, we can expect to see more companies follow suit and leverage advanced technologies to improve quality, efficiency and sustainability.
The next time you pick up a jar of Claussen pickles or a box of Kraft Mac & Cheese, think about the complex, AI-powered 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.
