KeHE has improved customer satisfaction and achieved 99.69% pick-rate accuracy.
KeHE Distributors LLC has revealed significant increases in customer satisfaction and record-breaking order accuracy rates after implementing a series of innovations focused on elevating customer experiences.
The company distributes natural and organic, specialty, and fresh products to more than 31,000 retail and online stores throughout North America. It’s is one of the largest grocery and natural distributors.
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In recent years, supply chain delays, food shortages and rising costs have caused an ever-evolving distribution landscape that KeHE has learned to navigate. According to the company, KeHE found this challenge the perfect opportunity to embrace the latest innovations in the industry to proactively 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 innovations KeHE has rolled out focus on helping deliver the best experiences to suppliers and retailers. The innovations are:
- Improved Pick-Rate Accuracy. The pick rate is the percentage of items received versus the amount ordered. With scan compliance and the use of Global Trade Item Numbers (GTIN), KeHE’s pick rate has reached an all-time high average of 99.69% 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, ultimately saving them time and money.
- More Accurate Fill Rates. Fill rates represent the percentage of orders that are immediately fulfilled by stock that’s 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% 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 enabled the retailers to order the precise number of products they wanted instead of requiring them to buy a full case. The enhanced access was key for independent retailers to benefit from flexibility when making their selections and for reducing their inventory costs.
These innovations are part of the company-wide Food. Forward campaign. The goal of the campaign is to “ensure that KeHE and its employees are sourced for GOOD in the world,” in the words of the distributor, and includes strategies for operational excellence, growth and partner success.
With 6,800-plus employee-owners, Naperville, Ill.-based KeHE is a Certified B Corporation.