Hershey’s Store-Specific Delivery Capability Is the Supply Chain Story Behind the $100 Million Inventory Target

Hershey Chief Supply Chain Officer Jason Reiman told investors at the company’s March 31 Investor Day that decision intelligence software deployed across the supply chain will reduce inventory by $100 million and increase productivity by $50 million over the next two years. The targets are the capstone of a $250 million supply chain and manufacturing investment Hershey undertook in 2024, focused on digitizing processes, improving visibility, streamlining operations and optimizing procurement and manufacturing. Reiman described the system as software that gathers and analyzes supply chain data and creates alerts for operations managers, including factory floor notifications when packaging supply needs to get ahead of production, according to Supply Chain Dive’s coverage of the presentation.

Hershey reaffirmed its full-year 2026 guidance at the same event, projecting net sales growth of 4% to 5% and adjusted earnings per share growth of 30% to 35%, per the company’s SEC filing.

The Store-Specific Assortment Capability Is What the Dollar Figures Are Built On

The detail in Reiman’s presentation that goes furthest beyond the headline numbers is the store-specific assortment program. Hershey has implemented delivery-unit assembly matched to geo-demographic data and input from its sales teams at the individual store level. The company automated that assembly process and, per Supply Chain Dive’s coverage, cut lead time from conception to delivery by 50%.

For 1P suppliers managing replenishment across Walmart’s Supercenter and Neighborhood Market fleet, that capability is worth examining on its own terms. A supplier that can configure delivery units to match the specific brand mix and count appropriate for each store is offering Walmart’s buyers something the category average cannot: execution precision at the store level before the product arrives on the shelf. That kind of capability does not appear on a line review scorecard directly, but it shapes in-stock performance, reduces returns and markdowns, and supports the velocity data that drives planogram decisions.

Decision Intelligence Addresses the Supply Chain Variables Walmart Suppliers Know Well

Reiman described decision intelligence as addressing the thousands of daily decisions that run through a complex supply chain, from commodity sourcing to factory floor operations to delivery planning. On the sourcing side, Hershey combines market intelligence, hedging tools, and governance to manage cocoa procurement, its most volatile input. The system is designed, Reiman said, to ensure competitive pricing versus peers while reducing input cost volatility.

The connected worker initiative on the factory floor equips operators with real-time data and guided workflows to identify production problems and corrective actions immediately, replacing paper-based processes. Reiman said the system allows every operator to understand line efficiency in real time and act on root causes without delay. Hershey’s $250 million supply chain investment began in 2024 with a focus on digitizing processes and improving visibility. The store-specific delivery capability is where that investment becomes visible to Walmart’s buyers.

Winning With Walmart

Winning With Walmart is an independent platform for suppliers, sellers, solution providers, and industry experts.

Articles are developed by staff editors, contributing experts, and trusted partners.

Some are researched and drafted with the assistance of AI tools and are reviewed, fact-checked, and edited by Winning With Walmart editors before publication.

Editorial judgment, sourcing decisions, and final approval rest with the publication's human editors in every case.

We are committed to accuracy and fairness. If you believe this article contains an error, we welcome your feedback.