Kraft Saves Miles and Fuel with Optimized Transportation Project
Redwood Shores, CA – May 20, 2009
Kraft Foods Global, Inc. instituted a new synchronized trip program last year, Project MOST (Management of Optimized Sustainable Transportation), designed to achieve a reduction in “empty miles” within its U.S. private fleet and top 50 carriers, Oracle today announced.
One year later, Project MOST is the cornerstone of Kraft’s transportation sustainability efforts. It identifies the repeated patterns of truck movements into and out of Kraft distribution locations and then creates a series of trip segments for individual drivers and tractors in order to avoid trucks moving while empty, creating “empty miles”.
Kraft collaborated with Oracle to develop innovative transportation functionality that enables Kraft to perform strategic analysis of its network, identify ways to leverage freight, and form efficient routes for trucks.
“Even before the increases in the price of oil, and the growing focus on sustainability, we knew we could improve the movement of trucks carrying products to our customers,” said Mike Cole, Director North America Transportation, Kraft Foods Inc. “The challenge is to identify the recurring patterns of truck movements when you have almost a million shipments a year, spread across a network covering over 25,000 potential origin and destination combinations, on any given day.”
“After looking for commercial software that would meet our needs, we concluded that none existed and so we decided to work with Oracle,” said Cole.
“Working closely with Kraft, we gained valuable insight that enabled us to deliver new transportation management capabilities,” said Derek Gittoes, Oracle Vice President, Logistics Product Strategy. “As a result, Kraft has been able to optimize their asset utilization, maximize their fleet and third party resources and further their overall sustainability objectives.”
For more than a century, Kraft (www.kraft.com) has offered delicious foods and beverages that fit the way consumers live. Today, we are turning the brands that consumers have lived with for years into brands they can’t live without. Millions of times a day in more than 150 countries, consumers reach for their favorite Kraft brands, including nine with revenues exceeding $1 billion: Kraft cheeses, dinners and dressings; Oscar Mayer meats; Philadelphia cream cheese; Maxwell House coffee; Nabisco cookies and crackers and its Oreo brand; Jacobs coffees; Milka chocolates; and LU biscuits. Kraft is one of the world’s largest food and beverage companies with annual revenues exceeding $37 billion, more than 100,000 employees and more than 180 manufacturing and processing facilities globally. The company’s stock (NYSE: KFT) is listed on the Standard & Poor’s 100 and 500 indexes as well as the Dow Jones Sustainability Index and Ethibel Sustainability Index.
Oracle (NASDAQ: ORCL) is the world's largest business software company. For more information about Oracle, please visit our Web site at http://www.oracle.com.
Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.