Amid massive growth in its retail footprint, Casey’s General Stores is focusing on improving procurement in its supply chain, according to a fiscal Q4 2024 earnings call.
“We’re doing a lot of work on the IT side inside of the supply chain, primarily more on the demand planning side at this point to get a little more sophisticated on how we procure products and bring them into the warehouse, as well as the outbound loads going to those stores,” Casey’s President and CEO Darren Rebelez said on the call.
Although a Casey’s spokesperson declined to comment on current initiatives at the company, Casey’s has been using demand planning technology for several years. The c-store chain began partnering with spend management software provider Coupa in 2021 to modernize its procurement capabilities. According to a 2022 case study from Coupa, the collaboration enabled Casey’s to digitize more of its procurement processes while increasing spend transparency.
Casey’s has continued the technological overhaul of its demand planning functionalities since then. Last year, the c-store chain formed a partnership with supply chain software provider Relex Solutions to optimize inventory visibility. Casey’s joined several of its competitors — including Sheetz and Circle K — in implementing Relex’s platform.
Both the Coupa and Relex partnerships were initiated during Jaime Robles’ tenure as chief procurement officer for Casey’s, but he departed the company last fall. Casey’s has yet to announce a successor.
Improved supply chain efficiency and centralized procurement are components of the three-year growth strategy Casey’s announced last year. The plan also includes an emphasis on increasing the number of stores in the company’s network, with Casey’s adding more than 150 new locations in fiscal 2024 through new construction and acquisitions. The company expects to add another 100 in fiscal 2025, according to the call.
Despite the rapid growth of its retail locations, Casey’s is not currently undergoing any updates to its distribution network. Rebelez told investors that its three existing distribution centers can supply all of the company’s stores, including newly added ones.
“We’re very comfortable right now with our store footprint and our ability to scale the operation without having to add another DC at the moment, so no challenges there,” Rebelez said.
A Casey’s spokesperson declined to comment on any future initiatives the company is undertaking in relation to its supply chain. However, Rebelez emphasized on the earnings call that the company will continue to pursue procurement improvements.
“More to come there, but we’re definitely putting a lot of energy and effort behind that demand planning side of the supply chain,” he said.
