Case Study: Kraft Foods achieves lower transportation costs and better sustainability with Oracle Transportation Management

Kraft Foods - Customer Case Study

Kraft Foods, a major global food company, faced the challenge of optimizing its vast and complex U.S. transportation network. The company needed to reduce costs, improve customer service, and meet aggressive sustainability goals. To address this, Kraft worked with vendor Consumer Goods Technology and implemented Oracle Transportation Management (OTM) to centralize and enhance its logistics planning and execution.

The solution from Consumer Goods Technology involved a phased implementation of OTM, which integrated with Kraft's SAP ERP system. A key co-developed feature was cooperative routing, which optimized routes to maximize truckloads. The results were significant, including the reduction of over 500,000 empty miles in 2007, improved customer service metrics, more efficient freight payments, and major progress towards the company's sustainability targets.

Kraft Foods

Philippe Lambotte

Senior Vice President Customer Service and Logistics