{"id":8456,"date":"2025-11-07T12:40:05","date_gmt":"2025-11-07T17:40:05","guid":{"rendered":"https:\/\/distributionstrategy.com\/?p=8456"},"modified":"2026-09-11T10:46:20","modified_gmt":"2026-09-11T14:46:20","slug":"us-foods-uses-ai-to-power-a-smarter-supply-chain","status":"publish","type":"post","link":"https:\/\/distributionstrategy.com\/2025\/11\/us-foods-uses-ai-to-power-a-smarter-supply-chain\/","title":{"rendered":"US Foods Uses AI to Power a Smarter Supply Chain"},"content":{"rendered":"<p>US Foods is turning artificial intelligence from a pilot project into everyday infrastructure \u2014 and it\u2019s paying off. The food distributor said sales for the third quarter reached $10.2 billion, up 4.8% from the same period last year, while net income climbed 3.4% to $153 million, as the company continued to gain share among independent restaurants and specialty accounts. Executives said AI and automation are now key drivers of those gains, helping improve ordering, routing, and service quality across its nationwide network.<\/p>\n<p>Inside the company\u2019s MOX\u0113 ecommerce platform, a new AI-powered search engine \u201cdelivers significantly faster and more intuitive results,\u201d according to US Foods\u2019 third-quarter earnings presentation. The upgrade has already produced a 3% higher conversion rate for products added to cart and purchased \u2014 equal to 1.3 million additional cases sold annually.<\/p>\n<p>AI is also transforming the company\u2019s delivery network. A nationwide rollout of Descartes routing software, which uses predictive algorithms to optimize truck routes, improved delivery efficiency by 2.3% from a year earlier. The system analyzes data such as traffic, distance, and order volume to reduce miles driven and improve on-time performance.<\/p>\n<p>CFO Dirk Locascio said on the company\u2019s earnings call that US Foods is using artificial intelligence \u201cpretty broad-based\u201d across its business. \u201cIt informs our online recommendations to customers of either products that they haven\u2019t bought or others have,\u201d he said. AI also supports digital marketing and \u201ca lot of the models behind our routing or letting customers know where their truck is, when it\u2019s supposed to arrive.\u201d One of the biggest changes, he added, is how AI is helping sellers prepare customer proposals: \u201cThey can basically pull together the proposal for a customer in 15 or 20 minutes for something [that] used to take them two or three hours.\u201d<\/p>\n<p>AI is equally visible in the company\u2019s operations. Its UMOS quality-management platform improved performance by 24% year over year by reducing errors and boosting accuracy in warehouse and delivery processes. US Foods also began shipments from a new semi-automated facility in Aurora, Illinois \u2014 the company\u2019s first to pair robotic systems with human workers to speed order fulfillment and strengthen service consistency.<\/p>\n<p>CEO Dave Flitman said in the company\u2019s earnings release that \u201cour third-quarter performance reflects our team\u2019s ability to consistently deliver earnings growth through share gains and margin expansion.\u201d He credited \u201coperational excellence\u201d and continued investment in digital and AI initiatives as central to that performance.<\/p>\n<p>With AI now embedded in ecommerce, logistics, and warehouse operations, US Foods is building a data-driven foundation for its next stage of growth. The company\u2019s quarter underscored that, in food distribution, technology is fast becoming as essential as the trucks that carry the goods.<\/p>\n<p><a href=\"https:\/\/archive.distributionstrategy.com\/subscribe\/\">Don\u2019t miss any content from Distribution Strategy Group. Join our list.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US Foods is turning artificial intelligence from a pilot project into everyday infrastructure \u2014 and it\u2019s paying 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