Kellogg’s to Invest around $50 Million to Optimize its Supply Chain in North America

Kellogg’s, a breakfast cereals company has been investing around 50 million dollars over the upcoming three years for the purpose of re-adjusting the long-term strategy for the company’s cereal business in the region of North America.

As the manufacturing companies are now enjoying the increased demand for the CPG products, which are increasing by 8.7 percent in the second quarter of the year, and the reality is this that it has caused the additional pressure on the supply chain, and the across the food and beverages industry, there has been a widespread inflation because of the higher costs of the raw materials, along with the freight and labour.

During a virtual presentation for the Consumer Brands Association, Chris Hood, president of Kellogg’s North America said, the company has now been struggling for the purpose of keeping up with the supply due to the shortages of the truck drivers and factory line workers.

This new project has been expected for being completed by the year 2024, along with an estimated cumulative pre-tax charge of around 45 million dollars, along with an cash cost of around 25 million dollars, and the company ‘Kellogg’s’ has also been setting aside 4 million dollars for the purpose of covering the costs related to the employees, that also includes the severance and several other termination benefits.

The restructuring plan now involves shifting production of the different types of the products for the optimal lines across the supply chain network of the company.