Last updated on December 12th, 2024
KeHE Distributors has increased customer satisfaction through its pick-rate accuracy after implementing a series of innovations focused on elevating customer experiences.
In recent years, supply chain delays, food shortages and rising costs have caused an ever-evolving distribution landscape that KeHE has learned to navigate. The company found this as the perfect opportunity to embrace new innovations in the industry to address the needs of the market, focusing on pick rates, fill rates and flexibility.
“We operate at the forefront of what’s happening in our industry and identified three areas of opportunity for us to excel to ensure our partners’ successes,” said Deb Conklin, president and CEO of KeHE. “By prioritizing our suppliers and retailers, we can continually provide best-in-class distribution services and an unmatched variety of innovation for consumers.”
The three new innovations KeHE rolled out focus on helping deliver the best experiences to suppliers and retailers.
The innovations include:
- Improved pick-rate accuracy for KeHE customers
- The pick rate is the percentage of items received versus the amount ordered. With scan compliance and the use of Global Trade Item Numbers, KeHE’s pick rate has reached an all-time high average of 99.69 percent accuracy. Improving pick-rate accuracy translates to better experiences for retailers because they get what they ordered and don’t have to engage in the credit process.
- More accurate fill rates
- Fill rates represent the percentage of orders that are fulfilled by stock that is available. KeHE began using the FROST system to improve inventory optimization and safety-stock calculations for more efficient, timely ordering. The move to FROST has resulted in better planning and partner relations, as well as an increase in trust with retailers. It has also resulted in improved sustainability and a reduction in gross store spoilage by 25 percent since 2020.
- Enhanced access to each pick capability
- KeHE created and built KeHE CONNECT Direct and adopted digital solutions like the OPEX Perfect Pick system to provide additional options to its retailers. This has enabled retailers to order the precise number of products they want instead of requiring them to buy a full case. This was key for independent retailers to benefit from flexibility when making their selections and reducing inventory costs.
These innovations are part of a company-wide campaign named “Food. Forward.” The goal of the campaign is to “ensure that KeHE and its employees are sourced for good in the world” and includes strategies for operational excellence, growth and partner success.
About KeHE Distributors
KeHE distributes natural, organic, specialty and fresh products to more than 31,000 natural food stores, chain and independent grocery stores, e-commerce retailers and other specialty products retailers throughout North America.
Read more wholesaler and distributor news from The Shelby Report.
