Kellogg Company today took a major step forward in implementing Global Business Services (GBS), a key component of Project K, its recently announced multi-year, global growth and efficiency program.
Establishing Kellogg-operated service facilities to handle regionally based work is part of a three-tiered service delivery model the company is moving toward. Another tier includes some global work, which could move to a third-party provider. The third tier is comprised of locally based work, which will continue to be handled by local teams.
“GBS will streamline many end-to-end, transactional and repeatable processes that support our business,” said President and CEO John Bryant. “This will result in significant improvements in effectiveness, efficiency and collaboration, while creating new capabilities and enhanced organizational capacity.”
Grand Rapids, Mich., has been selected as the site for Kellogg Company’s regional North America GBS Service Center. With a commitment to retaining jobs in Michigan, the Grand Rapids location was chosen based on a variety of factors, including operating costs and the availability of suitable, existing facilities.
“Grand Rapids is a vibrant community and urban center of a growing region of more than 1 million people,” Bryant said. “As Michigan’s second-largest city, and a short distance from our headquarters, Grand Rapids is known for its proximity to major markets — including Chicago and Detroit — as well as affordable commercial space and a highly qualified workforce.”
The city and its suburbs are home to more than 40 similar service centers run by major companies such as Amway, Steelcase and Priceline.com. These facilities each have from 100 up to 1,000 employees, offering Kellogg access to a pool of qualified talent with experience in strongly service-oriented environments.
Grand Rapids’ proximity to its Battle Creek, Mich., global headquarters will also allow Kellogg to retain key employees with the knowledge and skills needed to grow a world-class services facility.
Kellogg’s North America GBS Service Center will open in the third quarter of 2014 with Finance-focused roles, and in total, will house between 300-600 Finance, IT, Supply Chain and HR service center roles when the facility is at full capacity in 2016.