Hershey’s North Star is a Connected Enterprise

Industry 4.0 investments over the last 10 years paved the way to produce immediate throughput gains and, eventually, AI-based food formulation and supply chain strategies.

Emerson’s Pro.Lean tool connects to a PLC or other devices, and allows an operator to use a wizard tool to configure a dashboard for operators.
Emerson’s Pro.Lean tool connects to a PLC or other devices, and allows an operator to use a wizard tool to configure a dashboard for operators.
Emerson

Putting aside the lack of business certainty so far, food companies are showing confidence and reiterating strong consumer trends for 2025. Some of these trends include health and wellness, continuous snacking, and demographics that point to strong demand from aging boomers, Millennials, and Gen Z consumers.

To meet these consumer trends, the food industry has been investing in automation, new equipment, sensing, and system software over the last 10  years, also known as the Industry 4.0 era. These investments aim to connect business units with optimized data, find increased throughput, and better predicted uptime with more machine visibility.

“There are more and more tasks within the factory that are now within the scope of automation. And a lot of that is being driven by the economics and commoditization of things like servos, sensors, robotic systems, camera systems that have changed what makes sense to do,” according to a respondent in the Business Intelligence Brief from PMMI, Using Smart Technologies to Bridge the Gap. 

While automation investments keep progressing, the next step is AI-based strategies with food formulation, maintenance, and supply chains. The stakes are clear for large and medium-sized food producers. 

The Hershey Company’s automation investment moves to the supply chain 

There are so many drivers converging in 2025, including new tariffs, equipment purchases, data integrity efforts, cybersecurity concerns in operations, and traceability demands with the upcoming Rule 204 in 2026. 

Deepak BhatiaDeepak BhatiaThe Hershey CompanyWith these business drivers coming fast, The Hershey Company hired its first-ever Chief Technology Officer in 2023, Deepak Bhatia, and his mission was to increase integration between plant operations and the supply chain. In 2024, The Hershey Company completed its ERP implementation of SAP technology and is now going further with its investment. 

“We want to continue to drive strong, continuous improvement and productivity in manufacturing,” says Steven Voskuil, SVE and CFO of The Hershey Company, at the 2025 Consumer Analyst Group of New York (CAGNY) conference in February. “That’s an area I think we’re proud of, but we also have lots of opportunities to expand.”  

The big picture on industry trends 

On the horizon are changing demographics with Gen Z and Millennials: These two groups in 2040 will consist of 69% of global spending, according to Hershey.  

Specifically, The Hershey Company wants more demand signals in the supply chain, so the company recently announced that it chose Kinaxis. Kinaxis’s platform sits on top of SAP and accelerates advanced planning optimization with pre-built templates that connect to all plant operations technology (OT) systems. “This best-in-class tool uses a combination of machine language (ML), data, and AI to make real-time adjustments to the way that manufacturing and supply chains respond to demand using a combination of ML, data, and response and fulfillment,” says Voskuil.  

The urgency for tighter integration is due to evolving consumer trends and acquisitions by large food companies. In recent years, The Hershey Company acquired several brands of salty snacks, such as the popular Skinny Pop Popcorn, Pirate’s Booty, and Dot’s Pretzels.  

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