Over the past two days I had the privilege of visiting the Wegmans Corporate Headquarters in Rochester, NY. The trip was made possible through the combined efforts of Dr. Robert Novack, one of my Supply Chain & Information Systems professors, and the Distinguished Honors Faculty Program (DHFP) of the Schreyer Honors College. Having attended numerous insightful DHFP events with a variety of different professors during my time at Penn State, this latest trip has distinguished itself as my favorite. Why? Certainly one could argue that the executives and other business professionals at Wegmans “wined and dined” us with numerous delectable meals made with the finest Wegmans ingredients (which I do, in fact, sincerely appreciate), but my enthusiasm for the trip extends far beyond the high-quality food that nourished me for 48 hours. In fact, it has everything to do with learning about the way in which that food arrived at my plate (ie the supply chain) and, more broadly, the company responsible for that execution, Wegmans. Though each of us may have our own personal reason to love Wegmans (be it the freshest produce, irresistible bakery, endless food court, specialty cheese shop, “craft your own pack” beer, signature Menu Magazines, exceptional customer service, or affiliated restaurants like The Pub & Amoré), I argue that it’s the integration of all these offerings that truly set Wegmans apart.
Wegmans, put simply, is a pioneer in the grocery industry. In fact, I hesitate to even mention their industry, as the company offers much more than conventional grocery stores, and in my mind, should not be viewed as such. Since its founding in 1916, Wegmans has opened 85 stores and has yearly revenues of about 7 billion dollars. There are over 9,000 Wegmans brand (private-label) items — the products that Wegmans is “proud of” and “passionate about.” More and more of these items are earning the yellow “Food You Feel Good About” banner on their packages, signifying Wegmans’ commitment toward removing artificial colors, flavors, preservatives, trans fat, and high fructose corn syrup, from its items. Perhaps the biggest takeaway I left Rochester with is the leverage Wegmans has as a privately held company, still owned and led by its founders, the Wegmans Family.
When I think of Wegmans and reflect on the various insights shared with me during the visit, the first words that come to mind are familial, modest, innovative, quality-driven, selective, customer-focused and unique. Rather than focusing solely on the products, margins, price-points, and sales, Wegmans places relationships and people at its core. This became largely evident as executives discussed their technology implementation strategy, whereby people and processes are kept at the core, with technology serving as a supplement or enabler rather than a superseding force. Being privately held also allows for a more organic, or “controlled growth” approach to doing business, allowing the company to remain deep rooted in its values and mission. Not having to file with the SEC or report to a Board of Directors, Wegmans can more easily make mission-driven decisions as opposed to the conventional penny-driven decisions. As a result, Wegmans can pride itself on differentiated or one-of-a-kind features such as the industry’s first central affiance facility (cheese caves that essentially mirror those found in France) that produces the finest artisanal cheeses. Additionally, Wegmans maintains a very favorable presence in its communities, often partnering with local suppliers and farmers for new sourcing avenues. These initiatives not only foster healthy relationships within the local communities and often yield utmost product freshness; Wegmans can capitalize on the growing trend of consumer wanting to support local suppliers. Beyond the cheese caves and master Sushi chef (yes, Wegmans has 1 of the mere 20 in the US), I was most impressed by the work being done by Wegmans in the organic market.
As consumers become increasingly more interested in healthy, sustainable, and organic products, Wegmans has taken it upon itself to help ensure that supply meets demand. To do this, in 2007 Wegmans opened its own organic farm in Canandaigua, NY to learn about the process and in turn, “develop and share best practices with our customers and partner-growers” (Organic Farm – Wegmans). Not only is such an initiative admirable from a PR perspective, but more importantly, Wegmans is developing strong relationships with the local community and concurrently contributing to the farms’ s “economic sustainability.” From a supply chain perspective, this grassroots initiative is also favorable because local sourcing often reduces the cost of transportation. Additionally, as the supply of organic goods increases, prices of those goods will likely drop due to an inverse relationship. Thus, favorable cost savings can result.
As I mentioned before, this recent trip to Wegmans has been my most favorite, however, I don’t think I could fully appreciate all that I saw having not gone on the other DHFP trips, specifically those hosted by Dr. Novack whereby I visited REI, Walmart, and Amazon facilities. Although the operations of Amazon and other well-known companies rightfully receive the spotlight for their advanced, sophisticated and highly automated operations (think Amazon’s Kiva robots), Wegmans has remained honest and committed to its core competency — the exceptional retail/store experience. As the company continues to grow and expand into new markets, I am hopeful that Wegmans will continue upholding its unifying values and foundational beliefs, not fully compromising those for the sake of efficiency or bottom line metrics. “Controlled growth” coupled with strong partnerships, continued innovation, and a committed workforce, will be the key to a bright, sustainable future. As a business student and “foodie,” I am excited to watch Wegmans evolve in the grocery industry, and continue to transform the supermarket, as we know it.
A big thank you to Dr. Novack, the Distinguished Honors Faculty Program (DHFP) of the Schreyer Honors College, and of course, the many folks at Wegmans whose hospitality is so greatly appreciated, and whose insights leave me enriched.
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