Hershey is implementing technology to enhance productivity and reduce inventory levels within its supply chain, as announced during its 2026 Investor Day.
The company has invested in decision-intelligence software that collects and analyzes data throughout the supply chain, providing alerts to operations managers, according to Chief Supply Chain Officer Jason Reiman’s presentation on March 31.
For instance, decision intelligence assists workers on the factory floor by notifying them when additional packaging is required if production exceeds the plan, Reiman explained.
“There are numerous decisions made daily across complex supply chains,” Reiman stated. “We view decision intelligence as an opportunity to enhance productivity by $50 million and reduce inventory by $100 million over the next 2 years.”
In 2024, Hershey initiated a $250 million project to improve agility and efficiency in its supply chain and manufacturing operations. The focus was on digitizing processes, enhancing visibility, streamlining operations, and optimizing procurement and manufacturing.
Currently, Hershey is employing technology across sourcing, manufacturing, delivery, and planning, Reiman highlighted.
“Technology is essential for progress in the supply chain,” Reiman emphasized.
Regarding sourcing, Hershey’s technology investment aids in identifying supply-and-demand fluctuations related to commodities like cocoa. The company integrates hedging tools with market intelligence and governance to manage its cocoa sourcing effectively, Reiman noted.
“This enables us to ensure fulfillment of our plans, reduce volatility, and maintain competitive pricing compared to our peers,” Reiman added.
Hershey is also focusing on enhancing spend visibility to gauge its position relative to competitors, Reiman mentioned. Cost modeling provides the sourcing team with refined category strategies.
In manufacturing, Hershey’s connected worker initiative, part of Hershey’s Digital Lean strategy, equips operators with digital tools, real-time data, and guided workflows to swiftly address issues and collaborate, replacing slower, paper-based processes.
“This empowers every worker on our factory floor to monitor the efficiency of our operations,” Reiman stated. “In case of any problems, they can identify root causes and implement corrective actions promptly.”
To enhance delivery operations, Hershey has implemented store-specific assortments tailored to each location’s brands and demographics, based on input from sales teams, Reiman explained. The company has automated delivery-unit assembly, reducing lead time from concept to delivery by 50%.
Reiman expressed confidence in Hershey’s productivity for 2026 and anticipates even greater gains in 2027 and beyond due to the company’s technology investments.
“Increased productivity allows us to reinvest in our business, fostering growth opportunities,” Reiman stated.