Imagine operating a supermarket chain with over 200 locations, processing millions of products weekly while ensuring efficient inventory turnover and timely deliveries. For Weis Markets, the solution came through embracing a cloud-based Transportation Management System (TMS).
Since 2015, Weis Markets has experienced unprecedented growth, evolving far beyond its origins as a single community store opened in Sunbury, Pennsylvania in 1912. To accommodate this rapid expansion, the company needed a TMS that could scale effectively to meet the growing demands of the food retailer.
"To truly maximize distribution center efficiency, we needed better command of our data," said Gary Kinneer, Weis Markets' transportation management lead. "We required a system that could access data and enable better, more informed decisions. Simply put, we needed a solution."
A Growing Operation With Complex Needs
With stores across Pennsylvania, Maryland, New York, New Jersey, Delaware, Virginia, and West Virginia, Weis Markets employs over 23,000 staff members. The company produces its own milk and ice cream while emphasizing local product sourcing—purchasing more than 26 million pounds of locally grown produce annually in Pennsylvania alone.
As a vertically integrated food retailer, Weis Markets supplies its stores through a 1.3 million-square-foot distribution center (DC) in Milton, Pennsylvania, located about 12 miles from its Sunbury support center and manufacturing facilities. "Nearly everything we sell moves through our distribution center," Kinneer explained.
The DC operates 365 days a year, serving as the critical link between Weis Markets and customers shopping at its 204 retail locations. The company maintains its own fleet of trailers and vehicles to service these stores. "Our trucks travel about 270,000 miles weekly, delivering approximately 1,000 shipments to our stores," Kinneer noted, adding that the distribution operation alone employs about 900 workers.
The Search for Efficiency
In 2014, Weis Markets began exploring ways to enhance operational efficiency and improve visibility into its inbound logistics. "We lacked a transportation management system and needed to boost DC efficiency," Kinneer recalled. "Our goal was achieving better inbound-outbound balance to create leaner distribution operations."
Kinneer, who previously worked primarily in store operations, was tasked with leading the TMS selection and implementation. Though not originally from the supply chain side, he recognized the program was driven by the need for greater distribution efficiency. "There wasn't one specific trigger point," he said. "But we clearly needed to better maximize our opportunities."
At the time, the company operated 166 stores with expectations of steady organic growth through new locations and occasional acquisitions. "We knew that to absorb this growth—and the related inbound and outbound volume—we had to improve DC efficiency," Kinneer explained.
Implementing the Solution
Weis Markets evaluated multiple TMS options in the market, seeking a vendor that could provide both technology and implementation expertise. "We needed a partner to help establish our managed transportation program," Kinneer said.
The retailer ultimately selected Kuebix TMS, a cloud-based 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 routing, establishing standardized parameters for suppliers and carriers.
Since implementation, Weis Markets has significantly improved utilization of its 1.3 million-square-foot warehouse. "Inbound compliance gave us consistent expectations for external shipments," Kinneer said, "while creating internal consistency that streamlined efficiency throughout the DC."
Tangible Results
The TMS has enabled Weis Markets to optimize less-than-truckload (LTL) shipments by consolidating deliveries through three national LTL carriers instead of dozens previously used. "Where we once had hundreds of weekly LTL deliveries inbound, we now have just 20 or 30," Kinneer explained.
Another success came through automating the previously manual scheduling process. Using its own parameters and data points, Weis Markets now provides suppliers with specific delivery windows via the cloud-based system. "This simplified scheduling while giving us tracking information we never had before," Kinneer said.
The enhanced data access has also allowed Weis Markets to expand its backhaul program significantly. The company now converts supplier deliveries into customer pickups nationwide, transporting goods back to its Milton DC while being reimbursed by suppliers—creating mutual benefits.
"It's a win-win," Kinneer noted. "Suppliers reduce costs while we increase revenue or lower our product costs." The TMS provides better insight into lane rates and pickup values, enabling more informed freight management decisions.
Lessons for Other Retailers
For organizations considering cloud TMS implementation, Kinneer recommends thoroughly evaluating available options, listing essential requirements, and selecting a platform that meets current and future needs. "The company you operate today may look completely different in three to five years," he advised.
Reflecting on Weis Markets' transformation, Kinneer observed: "In just three years, our relationship with Kuebix has evolved during our company's record growth period. What we envisioned in early 2015 isn't necessarily how things operate today—and that's positive, because it means we're all evolving."