Kraft aim to cut supplier base
Kraft Foods hope to save more than $300m per year with their plans to half its current supplier base when they hope to "consolidate its purchasing of everything from ingredients to packaging materials", according to Reuters news agency.
The story breaks within 48 hours of Kraft's £10.2bn bid to buy Cadbury for which they will carry on negotiations to make a "global powerhouse in snacks, confectionery and quick meals" which already includes Kenco coffee, Toblerone and Oreo.
The review is intended to make its purchasing operations easier after recent acquisitions in past years, telling suppliers earlier this year that it was conducting the review.
Kraft Vice President of Procurement, Julia Brown, said that whilst it would be practicable for some brand to independently purchase, there was also a need for items, such as packaging material, to be purchased for the entire company.
Kraft currently has more than 40,000 different specifications for its global supplies.
