Mondelez Drives Margin Expansion Through Supply Chain Redesign

Mondelez International, Deerfield, Ill., announced initiatives to redesign its supply chain, which over the next three years, will bring in about $3 billion in gross productivity savings, $1.5 billion in net productivity and $1 billion in incremental cash. These savings will be the primary driver of an approximately 60-to-90 basis-point annual improvement in base operating income margin.

Mondelez plans to pay for these investments primarily by expanding margins in North America and Europe to levels at or above the average of peer companies.