KeHE News December 2023

KeHE Shares Company-Wide Campaign Food. Forward.^TM

As part of KeHE’s new campaign, Food. Forward.^TM, shares the results of their new innovations through customer & supplier-centric metrics.  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. 

“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 new innovations KeHE rolled out focus on helping deliver the best experiences to suppliers and retailers. The innovations include: 

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 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. 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 our retailers. This enabled our 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.

DPI Integration Update

To increase efficiency and data transparency, KeHE has begun migrating from DPI’s Oracle platform to KeHE’s technology platform.

KeHE’s technology platform, is comprised of several products. NTS, KeHE’s warehouse management solution, is a critical component of this platform. All 13 KeHE warehouses already run on NTS, and while DPI has a great system with Oracle, moving DPI’s two DCs to the same system is the most efficient method to achieve company-wide integration efforts.

DPI’s Ontario, CA (KeHE DC 45) and Tualatin, OR (KeHE DC46) warehouses will migrate to KeHE’s NTS system in phases. The warehouses have the following D-U-N-S numbers and location information:

• During this dual maintenance period, all new items and suppliers needed for both systems will be built in KeHE’s system only. The data will then be fed to the DPI system if the item is needed for retailers serviced out of Tualatin, Ontario, or Rocky Mountain (until the warehouse is repurposed). 
• Beginning on 11/14, DC45 and DC46 will be visible in KeHE CONNECT^® Supplier and for any new item submitted, a cost will be required for the product to be finalized.
• In upcoming weeks, suppliers may be asked to submit items through the KeHE CONNECT^® Supplier platform that are already set up in DPI’s Oracle system and not in NTS.
  • To ensure a smooth transition, these new items must match the delivery method and pricing in DPI’s Oracle system for Ontario and Tualatin.  If there are inconsistencies, KeHE will adjust to maintain alignment. 

Supplier and Item Maintenance

Supplier and item changes need to be communicated to KeHE and DPI through standard processes separately until further notice.

Price Change Notification

KeHE and DPI price change calendars align effective 1/28/2024.

• Price changes to go in effect 2/25/2024 are due 11/27/2023.
• Price changes must be submitted to KeHE CONNECT^® for KeHE warehouses.
•  Price change justification letter and the updated price list must be submitted into DPI iSupplier Portal for DPI warehouses.
  • Additional instructions on “how to use” the portal are located within the portal.

• If an item was ONLY in the DPI Henderson (RM) warehouse, price changes can be submitted to KeHE CONNECT^® only starting with the 2/25/2024 effective date of the price change.