Kraft Heinz Company : Largest Food And Beverage Company

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Kraft Heinz Company is currently the fifth largest food and beverage company in the world and the third largest in North America. It operates globally in producing high quality foods and beverages for consumers in more than 200 countries (Kraft Heinz Company, 2017). With its co-headquarter in Pittsburgh and Chicago, USA, the company has divided 4 big regions under the global team, which are AMEA (Asia, Middle East, Australia and New Zealand), NA (North America), LATAM (Latin America), and Europe. As it operates in the packing food industry, the company has a characteristic of having low profit margin with high volume.

This company is formed by the merger of Kraft Foods Group and H.J. Heinz Company in July 2015 under the joined investment
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In addition to that, not all of the products are produced in-house within the company. Some of them are produced by contract manufacturers all over the world in order to maximize the efficiency of the production.

1.1.2 Global Procurement Co-Pack
One of the main activities in the Kraft Heinz Company is done by the procurement department. It deals with the buying of all resources needed for the company. Currently, the procurement team is being divided into four spend areas due to the costing of the products. They are the ingredient team (which is dealing with the buying of raw materials), packaging team (which is dealing with the buying of packaging materials), co-pack team (which is dealing with the buying of finished goods from contract manufacturers), and lastly indirect team (which is dealing with other resources that are not directly relates to finished goods, such as travel, consultancy, utilities, etc.).

In relation to this research, the global procurement co-pack team plays an important role to drive cost savings and efficiency by finding the most suitable and profitable contract manufacturers that can meet the products’ requirements and capacity from the company. This includes creating and implementing the best strategy in relation with where the products are being sold, the

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