Case Study 1- Kraft Food Australia
Kraft Foods Australia is a subsidiary of Kraft Foods, the largest branded food and beverage company in the United States and the second largest worldwide. Kraft markets many leading food brands in Australia, including Vegemite, Kraft cheese, Kraft peanut butter, Maxwell House coffee, Oreo cookies, Ritz biscuits, Captain’s Table crackers, Philadelphia cream cheese, and Toblerone chocolates. Established in 1926, it is headquartered in Melbourne and has sales revenue of over A$650 million. Kraft has a long heritage as a food manufacturer in Australia, with manufacturing sites in Victoria and South Australia, in both metropolitan and country locations.
“The team at Pullars are great to deal with. Our product is always managed well and kept in excellent condition. The guys are very professional and are always accommodating of anyurgent needs we have.”
John Phillips, Warehouse and Distribution Manager
Business Challenge
Kraft’s Cobram processing plant produces milk, cheese and rework, but has limited storage facilities and as such relies on other operations to provide that service. However, it is vital that Kraft can access their produce quickly if needed, especially the rework material. P. Pullar & Co (Pullars) proved to have just the solution Kraft were looking for.
The Solution
Pullars’ cold storage facility was originally established in 1950. Then, in 2002, the facility underwent a major, multi-milliondollar redevelopment, incorporating the latest materials handling and automation technologies. The new site now boasts much greater storage capacity as well as cuttingedge technology, enabling stock to be delivered, dispatched and monitored in real time and with the highest level of safety. The facility has 24 rooms and a capacity of 16,000 pallets (15,000 permanent Dexion racks and 1,000 temporary racks). It has two fully adjustable rear loading/unloading docks for pan trailers and a new loading/ unloading awning with capabilities for three trucks. It is modern, sophisticated and clean, employing efficient quality processes. Room temperatures are monitored by Tempscan and are recorded every hour. The cold store can accommodate anything that needs to be stored at -2 to +20 degrees. Target produce includes fruit, cheese (bulk storage for maturation), butter, milk, alcohol – even Easter eggs. The company owns two prime movers and one refrigerated tautliner.
Additional Benefits
Among the additional benefits that clients such as Kraft can enjoy include:
- Highly process orientated Inventory management
- Focus on quality control is high, ensuring all produce is handled with care and integrity
- B-double compatible access points and awnings, allowing for easy, sealed access for cars and trucks entering and exiting the site
- Improved safety achieved through sprinklers and total insurance coverage; product loss is highly unlikely
“We ask for things urgently all the time as things change quickly. They are so responsive and I can honestly say they’ve never said no to any request. Their service and flexibility is exceptional”
Jan Kennedy, Cheese Grader
The Solution (continued)
With this magnificent new facility in place, Pullars were able to take up to 5,000 pallets from Kraft. It is very important to Kraft that they can retrieve their produce at short notice, and are able to perform inspections quickly (for example to check use-by dates and to carry out quality control checks). Often there is a need to access a specific product urgently, or bring a product in at short notice. Also, during the end of year cycle count, Kraft needs immediate access to all of their stock.
Benefits
Pullars have no difficulty accommodating all of Kraft’s needs. Indeed this flexibility, and the fact that both companies maintain rooms at the same temperatures, is one of the main reasons why Kraft chose Pullars – that, and the fact that Kraft can be confident when they access their stock it is in good condition and in the right location. The Pullars site is strategically located close to the Kraft site – another compelling benefit. As cheese may need to be matured over many months, and possibly be further reworked in the factory, the ability to move produce quickly between the two operations was an essential component in the drive to minimise overall supply chain costs.
P Pullar & Co is a family owned orchard, with a large cold store, packaging and warehouse facility. The orchard produces apples, pears, peaches, plums and cherries. The fruit is then sold nationally around Australia and is exported to Singapore, Hong Kong, Malaysia, Europe, Scandinavia, United Kingdom, Chile. Argentina and South Africa. The cold storage facility has 24 rooms and a capacity of 16,000 pallets, with latest automation and technology to track product status, real time. The operation owns two prime movers and one refrigerated taut liner to manage freight.
