Kellogg to spend $45m to optimise supply chain

Kellogg has announced a new project designed to drive increased productivity and optimise its North America supply chain network. 

The reorganisation plan involves shifting production of various products to optimal lines across the supply chain network, although no production facilities are set to close as a result. 

The overall project is set to be fundamentally completed by early 2024, with estimated cumulative pre-tax charges of approximately $45 million and an approximate cash cost of $25 million. Kellogg is setting aside $4 million to cover any employee-related costs, including severance and other termination benefits. 

Productivity improvements are expected to commence in 2023. 

The investment is subject to collective bargaining obligations.