Hershey will cut 1500 jobs in its new supply chain rpogram

Filed in archive Implementation on February 16, 2007

Yesterday, chocolate maker Hershey Co. unveiled a three-year supply chain transformation program, which will result in a net reduction of about 1500 jobs in its supply chain over the next three years.

According to Trading Markets, under the program, hershey is expected to reduce the number of production lines by one-third, which will significantly increase the manufacturing capacity utilization. Also, the company will outsource production of low value-added items and construct a flexible, cost-effective production facility in Monterrey, Mexico to meet current and emerging marketplace needs.

Upon completion of this program, which will be executed in stages over the next three years, about 80% of the company's production will take place in the U.S. and Canada.

I remember couple of years ago Hershey was having huge problems implementing it ERP initiative (It was SAP if I'm not mistaken). I hope this program won't end up like the last one but future will show whether Hershey has learned from its mistakes or not!