Mondelēz International is shifting how it works by introducing automation and AI in its distribution centers. They plan to implement this across five key sites in the U.S. that serve direct-store deliveries. The goal is to speed up how quickly products reach stores while minimizing stock levels and cutting expenses, according to Luca Zaramella, the company’s EVP, COO, and CFO during an earnings call.
About 60% of Mondelēz’s manufacturing network is already modernized. However, Zaramella notes that some plants still lag, operating inefficiently and producing excess waste. He remarked that “some of the plants will have to deal with much simpler lines,” tailoring operations to their strengths.
In a bid to cut costs further, Mondelēz plans to take back from co-manufacturers some of the production currently outsourced. This move is expected to save a significant amount of money.
The company also aims to manage packaging for mixed packs of cookies and crackers internally. Zaramella emphasized that doing this enhances competitiveness in the club channel and helps eliminate inefficiencies associated with outsourcing packaging.
This update comes after the announcement of a multiyear program designed to improve Mondelēz’s supply chain, specifically its biscuit operations. The project will increase production capacity for biscuits, cakes, and pastries, modernize packaging capabilities, and improve overall flexibility, as noted by Chairman and CEO Dirk Van de Put at the Consumer Analyst Group of New York Conference in February. The company expects to see benefits from these upgrades starting in early 2027.
Mondelēz is currently halfway through a $1.2 billion makeover of its supply chain and ERP system. This effort began in 2024 and will be rolled out in phases, set to be completed by 2028.
As companies adapt to changing market conditions, Mondelēz’s focus on automation and cost-saving strategies reflects a bigger trend in the food industry. In recent years, many food brands have turned to technology to streamline operations. According to a report from [insert trusted source], 70% of food manufacturers are investing in technology for supply chain improvements. This shift highlights a shared recognition of the need to balance efficiency with cost-effectiveness in an increasingly competitive market.
With the rise of e-commerce and changing consumer preferences, Mondelēz is positioning itself to meet future demands. Their strategy not only targets immediate gains but also sets the groundwork for long-term sustainability.
