Hormel Strengthens Supply Chain Predictive Analytics With AI, ML Optimization

Hormel Foods, manufacturer of brands such as Spam, Skippy and Planters, has optimized its supply chain with an AI-enabled planning platform. 

The company is using the Digital Brain platform from o9 Solutions, which collaborates with Accenture, to integrate advanced, enterprise-wide demand and supply planning capabilities. The implementation launched in March of last year, finalizing in December with capabilities now embedded across 70-plus sites within the company's dry and refrigerated networks. 

Paired with machine learning, the AI model allows for touchless forecasting that reduces the need for manual overrides and improves inventory accuracy, particularly around seasonal demand. 

Hormel's supply chain employees can now optimize truckloads based on weight, volume and stacking requirements via an automated recommendation system that translates demand signals into synchronized supply, inventory and deployment decisions. This allows them to identify opportunities and challenges earlier in the supply chain planning process, improving overall process visibility and ensuring alignment across Hormel's network of retail, foodservice and international partners.

“Every day, we balance moving thousands of products across multiple channels and storage environments,” Will Bonifant, chief supply chain officer at Hormel Foods, said in a statement. 

Bonifant took on the role on March 9, tasked with continuing Hormel's multiyear supply chain transformation journey, which has so far included investing in real-time data sharing to improve on-shelf availability with retail partners and moving toward a holistic, integrated business planning approach.

“By connecting demand, supply and inventory decisions in one streamlined platform, we are shifting from reactive problem-solving to more proactive, data-driven planning," he said. "We believe this will strengthen our ability to operate consistently, serve customers more reliably and, ultimately, drive additional growth across our brand portfolio.”