Hy-Vee Inc., the employee-owned supermarket chain, has significantly improved its supply chain operations through the implementation of advanced technology solutions from Manhattan Associates. The integration of a Warehouse Management System (WMS), Transportation Management System (TMS), and Demand Forecasting and Inventory Optimization (DFIO) showcases how modern tools can enhance efficiency and enhance customer satisfaction within the grocery sector.
A look at the operational specifics reveals that Hy-Vee adopted Manhattan Associates’ WMS to orchestrate a well-performing distribution network. The results from these initiatives have been substantial. The WMS allows Hy-Vee to optimize slotting and overall warehouse efficiency, which, over the past year, has led to considerable productivity improvements in its three primary warehouses.
The benefits of utilizing the TMS extend beyond mere logistics; it focuses on maximizing cube utilization on outbound loads and enhancing backhaul management. This ensures that more products are delivered efficiently, reducing waste and costs. For instance, precise truck routing has enabled Hy-Vee to plan delivery routes better across thousands of miles, leading to higher on-time delivery rates.
Advanced features such as cross-docking within the TMS have further streamlined operations by allowing for the quick transfer of goods from inbound to outbound trucks. This means that products spend less time in the warehouse, significantly speeding up the supply chain process.
Hy-Vee’s approach to dealing with unpredictable market conditions, especially during the COVID-19 pandemic, further illustrates the power of its integrated system. By adopting the DFIO solution, Hy-Vee harnessed the capabilities of machine learning to account for regular demand patterns and characterize atypical demand spikes. This adaptability was critical during the pandemic, allowing the company to create precise forecasts and make informed purchasing decisions.
Matt Beenblossom, Hy-Vee’s Senior Vice President of Distribution, remarked, “Manhattan’s WMS, TMS, and DFIO solutions have transformed our supply chain operations, enabling us to meet the evolving demands of our customers.” He emphasized that these solutions not only help in managing the current challenges but also support future growth while maximizing efficiencies in their existing network.
Stewart Gantt, EVP of Professional Services at Manhattan Associates, noted that Hy-Vee’s experience underlines the advantages of a cohesive system. By merging planning and execution through automation, Hy-Vee has recorded remarkable efficiency gains, thus setting a new standard for supply chain excellence in the grocery sector.
With over 570 business locations across eight Midwestern states and annual sales exceeding $13 billion, Hy-Vee stands as a major player in the food retail sector. Employing more than 75,000 people, the company ranks 38th on Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
The collaboration with Manhattan Associates has not only enhanced Hy-Vee’s operational efficiency but also ensured a higher level of service for customers. Efficiency in supply chain management leads directly to positive customer experiences, and Hy-Vee’s commitment to leveraging technology to achieve this is commendable.
Overall, Hy-Vee’s successful experience illustrates how investing in comprehensive supply chain solutions can lead to tangible benefits in efficiency and customer satisfaction. These technological advancements are not mere options but essential components for businesses seeking to thrive in an increasingly competitive landscape.
