United Natural Foods, Inc. (UNFI) announced that its supply chain efficiency has improved following the implementation of a lean management model, particularly within its distribution centers. This information was shared at an investor meeting on 11/12/2025.

An UNFI electric truck in a parking lot. Photo: UNFI

As part of a restructuring effort aimed at enhancing profitability and operational efficiency, UNFI adopted a standardized lean operating model. This model has been rolled out across 34 of its 49 distribution centers throughout its network. The model is built upon the philosophy of lean management, focusing on continuous process improvement.

According to company leadership, the implementation, which began in 12/2024, has strengthened customer relationships. It has also improved key indicators related to safety, quality, delivery, cost, and labor productivity.

"The core of daily lean management involves regularly reviewing key operational metrics related to safety, quality, delivery, and cost (SQDC)", stated Giorgio Tarditi, UNFI's President and Chief Financial Officer. He added that the new model also contributes to a better work environment and helps the company manage its turnover rate.

After one year of application, the company reported a 9% increase in throughput—the volume of packages processed at each facility. The on-time delivery rate also increased by 3%, while product loss decreased by 16%. UNFI forecasts a reduction of approximately 50 basis points in operating costs relative to net revenue by Q2 fiscal year 2026. Despite these initial results, the company stated that the implementation process is ongoing, and it has not set a definitive completion timeline for the entire system. "We are not aiming to cover all 49 centers by the end of fiscal year 2026, because that could lead to a superficial implementation," Tarditi said, emphasizing that employee consensus at each facility is a key factor.

According to UNFI leadership, the company remains optimistic about the long-term benefits of implementing lean management on a system-wide scale. As this model expands and operates more stably across its distribution centers, supply chain efficiency is expected to continue improving.

United Natural Foods, Inc. is a leading North American distributor of natural, organic, and specialty foods, headquartered in Providence, Rhode Island, US. The company was formed in 1996 through the merger of two regional distributors. It has since expanded into a network serving over 30,000 retail locations in the US and Canada, catering to traditional supermarkets, natural food chains, and e-commerce platforms.

The company offers a diverse range of products, from fresh, dry, chilled, and hot foods to health products and non-food items. UNFI also supports its customers with marketing services, shelf management, and supply chain solutions.

Ngoc Minh (via Supply Chain Dive)