KeHE Distributors, a Naperville, Ill.-based distributor of natural, organic, specialty and fresh products in North America, says it has “learned to navigate” the ever-evolving distribution landscape by focusing on pick rates, fill rates and flexibility to proactively address market needs.
“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,” Deb Conklin, president and CEO of KeHE, said in a news release. “By prioritizing our suppliers and retailers, we can continually provide best-in-class distribution services and an unmatched variety of innovation for consumers.”
KeHE’s says its three new innovations include:
1) 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, KeHE’s pick rate has reached an all-time high average of 99.69% accuracy, the company says. 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, the release said.
2) More accurate fill rates
Fill rates represent the percentage of orders that are immediately 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, the release said. It has also resulted in improved sustainability and a reduction in gross store spoilage by 25% since 2020.
3) Enhanced access to each pick capability
KeHE has created and built KeHE Connect Direct and adopted digital solutions like the OPEX Perfect Pick system to provide additional options to its retailers, the release said. This enabled its retailers to order the precise number of products they wanted 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 their inventory costs, the release said.
These innovations are part of a companywide campaign named “Food. Forward,” the release said. 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.
KeHE distributes natural and organic, specialty and fresh products to more than 31,000 retail and online stores across the country.
