According to www.fooddive.com, Hershey projects a $100 million inventory reduction over the next two years as a direct result of deploying decision-intelligence software across its end-to-end supply chain — spanning sourcing, manufacturing, delivery, and planning.
Decision Intelligence Drives Operational Agility
At its March 31, 2026 Investor Day, Hershey’s Chief Supply Chain Officer Jason Reiman detailed how the company’s investment in decision-intelligence technology enables real-time detection of supply-and-demand shifts and automated operational alerts. For instance, on the factory floor, the system notifies workers when packaging replenishment is needed if production outpaces plan. Reiman emphasized the scale of daily decision-making:
“Now there are thousands of decisions that happen every day across complex supply chains,” Reiman said. “And we see decision intelligence as an opportunity to increase productivity by $50 million and reduce our inventory by $100 million over the next 2 years.” — Jason Reiman, Chief Supply Chain Officer
Integrated Technology Across Functions
Hershey’s broader $250 million supply chain and manufacturing initiative, launched in 2024, focuses on digitizing processes, improving visibility, streamlining operations, and optimizing procurement and manufacturing. Key implementations include:
- Sourcing: Technology helps detect volatility in commodity markets — particularly cocoa — and integrates hedging tools with market intelligence and governance to stabilize pricing and ensure plan adherence.
- Manufacturing: The company’s Digital Lean strategy includes a connected worker initiative, equipping operators with digital tools, real-time line-performance data, and guided workflows to identify root causes and implement corrective actions immediately — replacing paper-based systems.
- Delivery: Store-specific assortments are built using geo-demographic data and sales team input; automated delivery-unit assembly has cut lead time from conception to delivery by 50%.
Strategic Reinforcement Loop
Reiman underscored the self-reinforcing nature of these gains: improved productivity enables reinvestment, which fuels growth, which in turn creates new opportunities for further productivity improvements. He stated:
“The more productivity that we can generate, the more we can reinvest back in our business; the more we can invest back in our business, the more we can grow,” Reiman said. “And the more we can grow, the more opportunities we have to find productivity.” — Jason Reiman, Chief Supply Chain Officer
This initiative follows Hershey’s earlier $1 billion supply chain upgrade, including the opening of a new chocolate plant — reinforcing its multi-year commitment to infrastructure modernization. For global supply chain professionals, Hershey’s approach demonstrates how tightly integrated, function-spanning technology deployments — rather than isolated point solutions — can simultaneously improve responsiveness, reduce working capital tied up in inventory, and strengthen resilience against commodity and demand volatility. The company’s emphasis on spend visibility, cost modeling, and real-time operator empowerment offers actionable benchmarks for peers evaluating similar digital transformation roadmaps.
Source: Food Dive
Compiled from international media by the SCI.AI editorial team.
