Imagine operating a supermarket chain with over 200 stores, processing millions of products daily while ensuring fresh food arrives on time, minimizing spoilage, and reducing operational costs. The case of Weis Markets, a century-old retail company, offers valuable insights into how modern technology can transform supply chain management.
Since 2015, Weis Markets has experienced unprecedented growth, far surpassing its humble beginnings as a single community store opened in Sunbury, Pennsylvania in 1912. To accommodate this rapid expansion, the company urgently needed a flexible Transportation Management System (TMS) that could scale accordingly. As Gary Kinneer, Director of Transportation Management at Weis Markets explained, scalability was the top priority when searching for solutions in 2014.
A Vertically Integrated Operation
Weis Markets operates stores across Pennsylvania, Maryland, New York, New Jersey, Delaware, Virginia, and West Virginia, employing over 23,000 people. As a vertically integrated food retailer, the company runs its own milk and ice cream processing plants while prioritizing locally sourced products. In Pennsylvania alone, Weis purchases more than 26 million pounds of locally grown produce annually.
The company's 1.3 million-square-foot distribution center (DC) in Milton, Pennsylvania, located about 12 miles from Sunbury's store support center and manufacturing facilities, serves as the hub for all product distribution (excluding direct store delivery). "Nearly everything we sell goes through our distribution center," Kinneer noted.
Operating 365 days a year, the DC serves as the critical link between Weis Markets and its 204 stores. The company maintains its own fleet of trailers and vehicles to service these locations. "Our trucks travel approximately 270,000 miles weekly, delivering about 1,000 shipments to our stores," Kinneer said, adding that the distribution operation alone employs about 900 workers (700 DC staff and 200 drivers).
Optimizing Inbound and Outbound Logistics
In 2014, Weis Markets began searching for ways to enhance operational efficiency and improve visibility over its inbound freight logistics. "We lacked a transportation management system and needed to boost DC efficiency," Kinneer explained. "Our goal was to achieve better inbound-outbound balance for leaner distribution operations."
Though Kinneer came from a store operations background, he was tasked with leading the TMS search and implementation. "There wasn't any specific 'tipping point' that drove the initiative," he recalled, "but it was clear we needed to better maximize our opportunities." At the time, Weis operated 166 stores and anticipated steady organic growth through new store construction and occasional acquisitions.
"We knew that to absorb this growth—and the associated inbound and outbound volume—we had to become more efficient at the distribution center level," Kinneer emphasized.
Selecting the Right Technology Partner
Weis Markets evaluated several prominent TMS providers in the market, seeking a vendor that could offer not just technology but also implementation support and expertise. "We needed a partner to help establish our transportation management program," Kinneer said.
The retailer found its solution in Kuebix TMS, a cloud-based transportation management system that met all their requirements. "Kuebix aligned with our envisioned business model," Kinneer noted. The team implemented the system for multiple functions including inbound compliance and route planning, establishing standards and parameters for suppliers and carriers.
Since implementing these features, Weis has significantly improved utilization of its 1.3 million-square-foot warehouse space, which includes food, non-food, and temperature-controlled areas. "Inbound compliance created consistency both externally and internally, allowing us to streamline efficiency at both ends of the distribution center," Kinneer explained.
Data-Driven Improvements
The TMS enabled Weis Markets to optimize its less-than-truckload (LTL) operations by consolidating shipments through three selected national LTL carriers instead of dozens previously used. "Where carriers used to deliver one or two pallets sporadically to our DC, we now route shipments to consolidation points," Kinneer said. Weis then uses its own fleet to backhaul these goods to its distribution center.
"We've reduced weekly LTL deliveries from hundreds down to just 20 or 30 by using our TMS to consolidate shipments," Kinneer reported.
Another success story involves Weis using its TMS for online scheduling—a previously manual process. By establishing specific parameters and standards, the retailer can now provide suppliers with precise delivery time windows through Kuebix's cloud-based solution. "This not only streamlined scheduling but also provided tracking information and data we never had before," Kinneer added.
Embracing Evolution
Just three years ago, Weis relied on manual processes to identify backhaul opportunities after store deliveries. Now, with enhanced data access, the company has significantly expanded its backhaul program, even converting supplier deliveries into customer pickups nationwide. These goods are brought back to the Milton DC, with Weis receiving reimbursement from suppliers who avoid third-party carrier costs—creating mutual benefits.
"It's a win-win for both businesses," Kinneer said. "Suppliers reduce their costs while we increase revenue or lower our merchandise costs."
The TMS has given Weis better visibility into these opportunities. "We now better understand the value of lane rates and pickups, enabling smarter decisions about which freight to manage," Kinneer explained.
For companies considering cloud TMS upgrades, Kinneer advises evaluating all available options, listing essential features, and selecting a platform that best meets organizational needs—while keeping future growth in mind. "In just three years, our relationship with Kuebix has evolved during our record growth period," he reflected. "What we envisioned in early 2015 isn't exactly how things look today—and that's a good thing, because it means we've all evolved."