Key Points
- Hershey is expanding AI implementation across both supply chain and marketing operations as part of strategic preparation for anticipated 2027 business recovery
- The company is integrating AI capabilities throughout multiple supply chain functions rather than focusing on isolated pilot projects
- This expansion represents a broader shift toward enterprise-wide AI adoption in anticipation of future growth cycles
How Hershey Is Building AI Into Every Layer of Supply Chain Operations
Hershey just announced a comprehensive expansion of AI across its supply chain and marketing operations, positioning the company for what it expects will be a significant recovery period beginning in 2027.
The confectionery giant isn't just testing AI in one area. They're implementing it across multiple supply chain functions simultaneously, from demand planning to inventory management. This represents a shift from the typical approach of running small pilots to deploying AI as core operational infrastructure.
What makes this particularly interesting is the timeline. Hershey is making these investments now, ahead of the recovery they're anticipating. That suggests they see AI capabilities as essential for capturing growth when market conditions improve, not just as efficiency tools for current operations.
Why Cross-Functional AI Implementation Changes the Supply Chain Game
What Hershey's approach tells us about where AI in supply chains is actually heading is that the real value isn't in individual AI tools. It's in how those tools work together across functions.
When you deploy AI in demand forecasting, warehouse management, and transportation planning simultaneously, you create feedback loops that make each system smarter. Your demand signals improve inventory positioning, which optimizes warehouse flows, which creates better data for transportation planning. That's a different level of operational intelligence than you get from point solutions.
The Timing Strategy Behind AI Investments
Hershey's timing here is worth paying attention to. They're not waiting until they need the capacity. They're building AI capabilities while they have the resources and bandwidth to implement them properly.
That's smart supply chain thinking. When demand surges in 2027, their systems will already be learning and optimizing. Competitors who wait to start AI implementations will be playing catch-up while managing growth at the same time.
What Enterprise-Wide AI Actually Looks Like
Most supply chain teams are still thinking about AI as individual applications, a demand forecasting tool here, a routing optimizer there. Hershey's approach suggests the next phase is about AI as operational infrastructure.
That means AI capabilities that span planning, execution, and continuous optimization across the entire network. It's not just about automating tasks. It's about creating systems that get smarter as they process more data and handle more complexity.
What Supply Chain Leaders Should Do Before Your Next Growth Cycle
If you're planning for growth in the next few years, Hershey's strategy offers a clear playbook, build your AI capabilities before you need them, not after demand hits.
Most operations teams approach AI backwards. They wait until they have capacity problems, then look for AI solutions to help. But AI systems need time to learn your data patterns, optimize their algorithms, and integrate with your existing processes.
- Map your data connections first: Cross-functional AI only works if your systems can actually share data. Audit how information flows between planning, warehouse management, transportation, and procurement today.
- Start with your biggest constraint: Whether that's demand accuracy, inventory turns, or freight costs, pick the area where better intelligence will have the most immediate impact on operations.
- Plan for integration, not just implementation: The value is in how AI applications work together. Think about how improvements in one area will create better inputs for other functions.
Building AI-Ready Supply Chain Operations for Future Growth
Hershey's expansion strategy shows how forward-thinking supply chain teams are preparing for growth cycles. They're not just adding AI tools. They're building operational intelligence into their core processes before they need the extra capacity.
Trax Technologies helps supply chain leaders implement AI-powered automation that connects procurement intelligence to broader operational planning, creating the kind of integrated approach that makes growth periods more manageable.
Discover how intelligent invoice processing and spend management create the data foundation that supports AI-driven supply chain optimization across planning, logistics, and procurement functions.