OVERVIEW

Kerry Foods is pursuing a project to optimize its logistics while keepingsustainability in mind. While they are working on controlling the carbon footprint generated due tomanufacturing, warehouse and logistics activities, our team will work on helping with meeting theirsustainability goals concerning logistics. We will review their customer minimum order quantities to identify opportunities to reduce % cases picked by SKU/skip. From there on, we aim to provide multiple orderquantities to Kerry for their customers so that they can transport in an environmentally sustainable and cost time efficient manner. Furthermore, we will help them maximize truckload efficiency byoptimizing pallet configuration and increasing stackability for their shipments. After presenting customerMOQs for shipping, we will quantify the impact of our proposed solutions on Kerry's transportationand warehouse operations by studying how the KPIs will change post the solutions are implemented.Furthermore,wewillpresenthowourrecommendationswillalignwiththeirsavingsandcorporate sustainability. Our scope will extend to providing the company with processes and tools forregular reviewoftheMOQstodrivecontinuousimprovementasproducts andvolumeschange.

BACKGROUND

Kerry Foods is a reputed company known for its iconic food brands and is headquartered inLos Angeles. Kerry Foods has around 50 locations and 18000 employees as of now.

Kerry Foods wants to support its corporate sustainability goals while increasing supply chainefficiency. As a result, the company has committed to reducing Scope 3 greenhousegas emissionsfrompurchasedgoods andservicesby20%permetrictonofmaterial sourcedby2030.Thisproject willsupportachievingthisgoalwhilesupportingSupply Chainproductivitytargets.

Afterconductingprimary researchbyinterviewingkeycompany people and visiting oneoftheir3PL DC, we understood that currently, many customers are ordering in a manner that does notefficiently utilize Kerry'ssupply chain resources. The orders come frequently and for smallquantities that are not enough to build a complete pallet with the same item. We noticed that many pallets in the DC were being constructed and wrapped with only one box. Trucks operate at LTL (lessthan truckload), multiple LTL going to the same client during the week while they can condense themallinoneormoreFTLweekly.

ByoperatingatLTL,thetrucksneed to be fixedattheirtotal capacityinaddition tothefrequenttripsmade by the trucks. Frequent trips to the same client present an opportunity to condense them toless FTL, leading to the high cost of transportation, which contributes to more significant carbonemissionsandfootprint.

Thecompanyhasspokentosomeofitsmajorcustomerstodevelopamoreefficientorderingsystem to improve logistics. As a company dedicated to itscorporate sustainability goals, it has adedicated sustainability team. So far, they have worked hard to bring change, and an example is thatthey have introduced environmentally friendly packaging for some of their brands, including XYZ Protein.93%oftheirpackagingissustainable,andtheyplanongetting itto100%by2025.

Specificallyforourproject,wewillbelookingattheoutbound logisticssideofthesupply chainandhowwecanoptimizeittomeettheirsustainabilityandsupplychainefficiencygoals.

PROJECTDESCRIPTION

This project aims to assist Kerry Brands' work on its sustainability and supply chaingoals. Our team will focus on contributing to environmental sustainability by providingrecommendationsthatwillaidin the reductionofthecarbondioxideemissionsgenerated byitslogistics activities to 25% by 2025. Ideally, we want to optimize their transportation and logisticsoperationstoreducetheemissionsreleased,reduce thelabourneeded fororderpicking andincreasetheiroverall supply chain efficiency. We will provide them with customer MOQs to optimize their truckloading, processes and tools to track continuous improvement as volumes and quantities change,ways to engage with their retailers and improved ways to plan their transportation. Ideally, oursolutionsshouldhelpthecompany:

PotentialimpactonKPIs:

• bettercostsavings(CO2emissions/Scope2emissions,averagelabourcost
• progresstowardscorporate responsibilitygoals(carbon footprint)
• OTDrate-on-time delivery
• %Ofcustomerswillingtoworkandcompromise-timesdelivered tosamecustomers
• averagetruckloadefficiency-Efficiencyratio/Revenuepertruck,labourefficiency

SCOPEOFWORK

• Phase IData Gathering: This phase of the project comprises the collection of data which will becarried out via interviews of critical individuals relevant to the project, customer order data (ifavailable),andreviews ofappropriateandavailableacademic journalsandliteratureconcerningtheFMCGindustrystandardsandefforttowards reductionofCO2emissions.
• Phase IIData Analysis: Analyzing the data and searchingfor the best practical solutions:Multiple MOQ models will be optimized regarding the data collected above and provided toclients asalternatives.
• Phase IIISelection of the best model:This phase is the step where the final solution will beselectedby comparingdifferentalternatives. Thekeybest fits the client's situation will finally be chosen. We will use relevant KPIs to show that our solutions will impact the business and its current goals. Furthermore, we will be helping them monitor and control after the implementation.

DELIVERABLES

Presentation to crucial customer stakeholders on findings and recommendations. The final review mustincludeactionableprojectideaswithquantifiedcostsavingsandsustainabilityimprovementsforthecustomer andretailerend-to-endsupplychain.

Roll outofananalyticaltoolandprocess toenable thecustomerteamtoassess similarscenariosinthefuture.

• Determinetheoptimal MOQrequiredtoimprovecustomers orderingefficiency.
• Recommendmethodstopromotecontinuousimprovement
• RecommendOptimizing truckload efficiency, ultimately reducing the numberoftrucksleaving Kerry,DC.

OUTOFSCOPE

• ChangeManagement
  • A change readiness assessment should be carriedoutto ascertain if and when the significantcustomers of Kerry Foods are ready to modify their ordering policy to match itssustainabilitygoals.
  • Developmentofacoalitionwithallinternal andexternalstakeholderstoenableclients toachievesustainabilitygoals.
• Development ofKPImeasuring internalmeasuringdepartmentalcommitmenttosustainability

QUESTION:

What will be an executive summary for the above project details?