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.
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.
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.
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.
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.
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.
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