The Chex Supply Chain has gained strength in the first half of 2023. We have been building upon our service
level since the start of the year, increasing from around 90% to start 2023 with highs of 94-95% recently. There
has been much more strength in vendor supply of ingredients and materials which in turn helps their overall
availability, along with our strong transportation network to ensure we are getting a steady flow of inventory to
help us get ou r service level back to the “Chex Way” these past couple of months.
2023 Service Level raw YTD
88.00% 89.00% 90.00% 91.00% 92.00% 93.00% 94.00% 95.00% 96.00% 97.00% 98.00%
1/2/2023
2/2/2023
3/2/2023
4/2/2023
5/2/2023
The good news is that when the service level goes up that means we are shipping more ordered cases to our
customers, so we are seeing less SKU’s OOS and your shelves staying stocked. Our Supply Chain team still needs
to remain dynamic to work through issues and delays which have spiked up in the past few weeks. We have a
procedure we follow to recover when a vendor is OOS of key items to ensure we are securing the right amount
of invent ory as soon as it’s available to fill our pipeline and minimize any gaps once the product starts shipping
again. We can improve turnaround times by 1-2 weeks by taking these steps once an issue is identified.
As you can see from the chart below of the items with over 20 or more cases, we have OOS in a given week in
2023. It has seen some ups and downs but overall, it has been a sharp decline since the start of the year.
OOS SKU's 20+ cases YTD
0 10 20 30 40 50 60 70
1/2/2023
2/2/2023 3/2/2023
4/2/2023
5/2/2023
6/2/2023
There are challenges out there we are seeing as outlined in the included Olive Oil market insight in this
newsletter. We are seeing supply impacts on other crops that are affected from weather conditions like our
Laurel Hill Hearts of Palm that are harvested out of Peru. It is unfortunate with products like these that need to
be grown outdoors that weather conditions can negatively affect the supply of goods and most likely the cost as
well. That can also put pressure on the cost of the transportation of the goods, which has seen some relief and
diesel fuel continues to trend down after a national average of over $5/gallon in the the US in 2022.
Our Supply Chain team has been tackling many projects for continuous improvement within our supply network
and strengthening our inventory to have a positive effect on our customers. These projects include strategic
buying to guide us through any supply challenges and deliver inventory to you as efficiently as possible while
delivering you the freshest product possible. We have also been working with all our brands to ensure we are
getting our Chex required shelf-life from our vendor partners to provide you a best-in-class shelf-life for our
customers, so we keep turning the product and keep the end user satisfied with the time to stock up on their
favorite goodies from your store.
Thanks for your business and support for us to keep filling your orders.
Jack Hanna Director, Supply Chain Chex Finer Foods 71 Hampden Road, Suite 100, Mansfield, MA 02048 P: 508-964-5934 E: j.hanna@chexfoods.com W: www.Chexfoods.com
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