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Hershey’s $1 Billion supply chain investment aims to fuel growth, not just cut costs

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Hershey is investing $1 billion in its supply chain to enhance production capacity, viewing it as a growth enabler rather than just a cost centre. The company is constructing a new chocolate factory in Hershey, Pennsylvania, adding 13 new production lines and upgrading 11 existing ones, with a focus on core brands, notably Reese’s. This investment aims to help Hershey maintain a flexible supply chain to meet growing demand while ensuring adequate capacity for existing customer needs. Advanced analytics and AI are being employed to identify “hidden capacity,” optimising production without significant additional investment. Additionally, Hershey is implementing modular, technologically advanced production lines that enable agility and innovation. The company emphasises the importance of employee buy-in and change management during supply chain transformations.

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