Cloetta has 8 factories in Sweden, the Netherlands, Belgium, Slovakia and Ireland. All in all, Cloetta produced 95,600 tonnes of confectionery during 2017.
Cloetta’s supply chain is responsible for production, purchasing, planning, logistics, quality, technology and safety. The top priorities during the year have been to implement and drive the Lean 2020 programme in order to increase efficiencies, prepare and initiate the insourcing of volumes from Candyking, drive the safety culture and to finalize the integration of the factories that came with the acquisition of Lonka in 2015.
Production rationalisations and transfers
In September 2017, Cloetta sold its Italian business including the four factories. Most of the production in the Italian factories was intended for the Italian market, but the products produced on behalf of Cloetta are still being made in the Italian factories
but now under a contract manufacturing agreement.
Between 2012 and 2014 Cloetta implemented a factory restructuring programme in which three factories were closed and production was insourced from third-party suppliers. Moving a production line is a complex process that requires extensive documentation, careful planning, knowledge transfer, technical adaptations and fine-tuning. A physical relocation of machinery is often required. In total, the restructuring programme meant that 40 per cent of the total volume in the Group was transferred in some way.
During 2017 the integration of the factories that came with the acquisition of Lonka was finalized.
In September 2017, Cloetta sold its Italian business including the four factories. Most of the production in the Italian factories was intended for the Italian market, but the products produced on behalf of Cloetta are still being made in the Italian factories but now under.
Cloetta has a central management system to ensure standardized working methods in its operations. Each production unit has a locally adapted management system that is linked to
the central system. Central policies, goals and procedures are broken down and implemented at the factory level.
Employee safety is fundamental to Cloetta and the top priority in every production facility. The focus is on a program to improve the safety culture that will alter the attitudes and behaviour of employees. Cloetta also works with continuous injury and risk reduction programmes based on real safety data that is translated into specific safety projects with a focus on employee involvement. By increasing safety awareness and encouraging good safety behaviour by everyone in the organization, Cloetta will continue to transform its safety culture and performance.
Quality and product safety
Cloetta places rigorous demands on quality and product safety. First class raw materials and correct treatment and processing methods are essential for manufacturing of high quality confectionery.
Cloetta’s factories are certified according to the BRC Global Standard for Food Safety and/or ISO 9001.
Planning and logistics
Effective production planning leads to lower capital tied up in the form of inventories of both raw materials and finished products, at the same time that it increases the service level. Delivery reliability is one of the most critical parameters for the retail trade.
Cloetta works continuously to optimise its flows and working methods, both internally and externally, together with customers and suppliers.
Cloetta’s largest cost items in production, accounting for around 70 per cent of total costs, are raw materials, finished goods and packaging.
Raw materials are purchased only from suppliers that can be verified against Cloetta’s ethical, quality, product, safety and environmental requirements. Suppliers to Cloetta are evaluated and approved before they are permitted to deliver raw materials to the factories. The process varies depending on the type of supplier and the type of material delivered. Certain suppliers are physically audited at regular intervals by Cloetta.
Cloetta works constantly to decrease costs and reduce waste. Key success factors in the production process include long-term and day-to-day efforts to achieve continuous improvements and create a learning-driven culture. This is conducted through a systematic focus on lean processes and value engineering.
The production strategy has been shaped into a long-term vision – “Lean 2020”.