Mondelez WTR Reaps Rewards From Major Overhaul Of Distribution & Supply Chain
Following the completion of “Project Forward” the 14 month consolidation of Mondelez WTR’s distribution centres in Europe, retail partners are benefiting from a step change in supply-chain efficiency.
Operations at its Villmergen distribution centre in Zurich, Switzerland and the former Cadbury distribution centre in Veghel, Netherlands have been merged into Villmergen, providing a platform for Mondelez WTR to fulfil its “One Order - One Delivery - One Invoice” promise to partners.
Jens-Ulf Hinze, Manager of Customer Supply Chain & Innovation at Mondelez WTR, said: “To have completed such an extensive consolidation project in such a short timescale and with no reported impact on service levels to our customers is a great testament to everyone involved.
“In order for our ‘Delighting Travellers’ category vision to continue gaining traction, we understand that Mondelez WTR must be a good partner to do business with and this project clearly supports this drive.
“We now have a more reliable and flexible order-fulfilment system and a far more robust platform for supporting growth in our travel retail business moving forward.”
Project Forward represents the biggest logistics and supply chain challenge Mondelez WTR has tackled in its 20 year history. After three years of commercial integration, consolidation of European-sourced products into one distribution centre represents the final step in the integration of the Cadbury business. “One Order, One Delivery, One Invoice” delivers a number of benefits, including:
- Greater order flexibility and improved order frequency per brand, with customers able to ‘mix-and-match’ brands in a single container
- Increased order sizes and optimized container utilization
- Maximised on-shelf availability and reduced stock-holding requirements
- Significant streamlining of administration and paperwork
- Harmonization of delivery terms
Justin Suter, Global Head of Supply Chain at World Duty Free Group, said: “We have been very impressed with the way Mondelez WTR has handled this process and with the quality of service they are now set to deliver.
“We experienced no delivery issues before, during or after the transfer, which is a significant achievement and testament to Mondelez’s detailed planning and collaborative approach.
“With the new simplified systems and improved infrastructure in place we are now working together on an end-to-end supply chain review, with a view to being even more efficient and effective in how we work together.”
Project Forward : The Details
Transition tasks included manual container loading, labeling, co-packing, updating of Import/Export documentation, customer/portfolio specific knowledge transfer, transfer of 1400 pallets of stock within four weeks, and integration of highly complex IT systems and data.
Upgraded Villmergen facility operated by Planzer includes storage capacity of 21,000 pallets, maximum outbound capacity of 10 40ft oversea containers and 40 trucks, maximum inbound capacity of 20 full truck loads from 31 factories across Europe.
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.