Cadbury cut two months off supply chain lead time for key ingredient
Mondelez International has opened a new $22 million facility in Shah Alam, Malaysia, to produce chocolate crumb locally for its Cadbury products. This move is expected to cut two months off the supply chain lead time, reduce import and transportation costs, and support volume growth across Southeast Asia.
Why it matters
This strategic investment highlights a trend towards localized production and optimized supply chains in the food industry, which can lead to greater efficiency, cost savings, and enhanced regional market responsiveness for global companies.
American snack giant Mondelez International is cutting at least two months from its supply-chain lead time for a key ingredient used in Cadbury chocolate.
The company opened a $22 million facility in Shah Alam, Malaysia, on Friday to produce chocolate crumb, an ingredient that contributes to the taste and texture of Cadbury's chocolate products, locally rather than importing it from Australia and South Africa.
"Producing it directly in Shah Alam removes at least two months from our supply-chain lead time," Nitin Binnani, vice president of integrated supply chain for SEA at Mondelēz International, told CNBC. The new facility will reduce import and transportation costs as it looks to support volume growth across Southeast Asia in the coming years, he said.
Shah Alam is Mondelez's sole Cadbury manufacturing hub for Southeast Asia, producing more than 130 varieties of chocolate and around 100 million bars annually, Binnani said.
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