Pittsburgh-based Kraft Heinz announced Thursday it will invest more than $400 million into building a new automated CPG distribution center, one it says will be one of the largest in North America.
The 775,000-square-foot distribution facility will feature state-of-the-art automaton technology and national railway access which will allow for greater supply chain efficiencies and faster distribution to retail and foodservice customers, the company said.
“As we continue on our journey to lead the future of food, our talented North America teams and collaborative external partners are innovating at a rapid pace to expand our supply chain capabilities,” Carlos Abrams-Rivera, executive vice president and president of Kraft Heinz North America, said. “The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60 percent of Kraft Heinz dry goods in North America through our automated facilities. It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”
The facility is expected to bring more than 150 new jobs to the area. The facility’s design includes a 24/7 automated storage and retrieval system capable of distributing an estimated 60 percent of the company’s foodservice business and 30 percent of all its dry goods. The facility is also expected to help the company achieve its ESG goal of reducing its operational environmental footprint by implementation of sustainable technology and solutions to reduce facility waste.
“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,” Erin Mitchell, vice president of logistics and head of network restructuring, said. “The construction of our new DeKalb distribution center is the latest example of this transformation in action. We have designed it to help ensure the delivery of our delicious, innovative and iconic products at the right time for our customers and consumers for years to come.”