Hostess Brands – A Sweet Supply Chain Story

Hostess Brands is one of the largest packaged food companies focused on developing, manufacturing, marketing, selling and distributing fresh baked sweet goods in the United States.

Challenge

To create a new company and return some of America’s best loved snack food brands to the shelf, Hostess needed to reevaluate it supply chain network for greater efficiencies.

Solution

Logility Voyager Solutions™ helped Hostess manage demand for seasonal products, introduce new products, accelerate inventory turns and move from a push to a pull based distribution strategy.

Bottom Line

  • Moved from bankruptcy to market reentry in under 24 months, culminating with an IPO of $2.3 billion
  • Shifted from a decentralized, direct store delivery model to a centralized planning and distribution strategy for more control of production and logistics
  • Achieved rapid inventory turns of 40-50 in the fresh distribution portfolio, and 15-20 turns in frozen portfolio
  • Supported an 80% growth in product offerings
  • Implemented a sales and operations planning (S&OP) process for more collaborative decision making