Hershey Integrates AI into Supply Chain Operations

Hershey is leveraging artificial intelligence to enhance its supply chain, focusing on sourcing, automation, and fulfillment.

3 min readBusiness Technology

The Hershey Company is embracing artificial intelligence (AI) to transform its supply chain operations, as revealed during its recent Investor Day. The company aims to incorporate AI across various facets of its business, including sourcing analytics and fulfillment processes. By utilizing data-driven insights, Hershey intends to optimize ingredient procurement and product distribution, striving for a supply chain that is faster, smarter, and more resilient through automation and informed decision-making. Given the volatile nature of food and snack markets, where costs and demand fluctuate rapidly, Hershey's digital planning tools are designed to enhance connectivity within its operations, minimize waste, and improve inventory management. The company emphasizes 'AI-enabled decision-making' to streamline sourcing and delivery, while also enhancing automated fulfillment systems for customized product assortments. This strategic shift not only focuses on automation but also aims to foster better coordination among employees. Hershey's initiative to integrate AI at every operational level signifies a broader trend in enterprise AI, moving from isolated pilot projects to comprehensive applications in business functions. CEO Kirk Tanner highlighted the importance of this strategy for future growth and operational excellence, indicating that the integration of AI is set to revolutionize industries reliant on physical goods.

Business Technology