United Natural Foods, Inc. has seen improvements across its supply chain from the introduction of a new approach to operations, particularly at its distribution centers.
While continuing its push for stronger profitability and efficiency as part of a larger turnaround, UNFI has introduced a standardized lean operating model in 34 of its 49 distribution centers, according to an investor day presentation held Dec. 11. The model is built on lean management philosophy, which prioritizes continuous process improvement.
The rollout, which began in December 2024, has helped the company build stronger customer relationships; drive safety, quality, delivery and cost improvements; and boost productivity and efficiency, per Tarditi.
“The core aspect of [lean daily management] is the daily review of key operational metrics that underpin safety, quality, delivery and cost, or SQDC,” President and CFO Giorgio Tarditi said during the presentation. He noted that the new model also improves the working environment and has helped the company limit turnover.
Although UNFI has seen tangible benefits from lean, the company is still in the middle of its full company rollout and is not setting an exact completion date.
“We never set a goal to be at 49 by end of fiscal '26 because we know that we would start embracing the very vicious idea of fake lean,” Tarditi said, noting that getting employee buy-in at each site is critical to each implementation.
Regardless of the time horizon, UNFI remains bullish about the long-term benefits it will yield from full-scale adoption of lean across its distribution sites and other areas of its business.
“We see significant opportunity to drive further improvement across our supply chain as we bring [lean daily management] to more of our DCs and as we see the DCs extend their track records practicing [lean daily management],” Tarditi said.
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