Hershey expects to cut inventory by $100m and improve productivity by $50m over the next two years as it expands the use of technology across its supply chain, company executives said during its 2026 Investor Day.
At the centre of the strategy is decision-intelligence software designed to collect and analyse supply chain data and generate alerts for operations managers. Chief supply chain officer Jason Reiman said the technology helps teams make faster and better decisions across complex, high-volume supply chain environments.
On the factory floor, for example, the system can notify workers when more packaging is needed if production begins running ahead of schedule. Reiman said thousands of decisions are made every day across the company’s supply chain, and that decision intelligence represents a major opportunity to improve both efficiency and responsiveness.
Hershey already laid the groundwork for this transformation in 2024, when it launched a $250m supply chain and manufacturing programme aimed at increasing agility and efficiency. The investment focused on digitising processes, improving visibility, streamlining operations and optimising procurement and manufacturing.
According to Reiman, technology is now being used across sourcing, manufacturing, delivery and planning. He said supply chain performance increasingly depends on digital capability, particularly in fast-changing markets.
On the sourcing side, Hershey is using technology to detect supply and demand shifts affecting commodities such as cocoa. The company combines market intelligence, hedging tools and governance structures to manage cocoa sourcing more effectively, helping reduce volatility and maintain competitive pricing relative to peers.
The business is also investing in spend visibility to better understand its cost position against competitors. Cost modelling, according to Reiman, gives the sourcing team sharper category strategies and improves decision-making.
In manufacturing, Hershey’s connected worker initiative — part of its broader Digital Lean strategy — equips operators with digital tools, real-time data and guided workflows, replacing slower paper-based processes and making it easier to solve problems quickly and collaboratively.
Reiman said those tools help every worker understand how efficiently a production line is running and what corrective action is needed when issues appear.
On the delivery side, Hershey has introduced store-specific assortments that tailor product mixes to each location based on geo-demographic data and input from sales teams. The company has also automated delivery-unit assembly, reducing lead time from concept to delivery by 50%.
Reiman said the productivity impact of these investments is expected to become even more visible beyond 2026. In his view, the more productivity the business generates, the more it can reinvest, and the more it reinvests, the more room it creates for future growth and additional efficiency gains.
