Yum China Breaks Ground on Its Biggest Greenfield Supply Chain Project

Yum China credits its “world-class” supply chain for helping it mitigate the impacts of COVID-19, and now it’s looking to further strengthen its supply chain infrastructure.

Today the company announced it broke ground on its largest greenfield supply chain center project to date, a nearly 700,000-square-foot facility located in Shanghai’s Jiading district that will serve as the headquarters for supply chain operations.

“As our supply chain capabilities continue to go from strength to strength, we believe it will better support more stores, channels and products while helping to drive long-term growth,” says Joey Wat, CEO of Yum China, in a press release.

In addition to supporting restaurants in eastern China, the new facility will serve as an integrated cold-chain transit hub for the region and support operations across the country. Yum China says it will include ambient temperature storage, cold-chain storage, office space and supporting facilities.

It will also feature automation solutions, three-dimensional storage technology to optimize the use of space and leverage digital technologies to build a smart supply chain management system. The facility will be equipped with rooftop solar panels and wind power generation equipment to reduce carbon emissions.

The site is expected to be completed in 2024.

At the end of March, Yum China had 32 logistics centers serving over 12,000 restaurants in more than 1,700 cities. In 2021, the company announced it intended to expand its logistics network to 45 to 50 logistics centers over the next five years.