United Natural Foods Automation Strategy: Scaling Profitability?

United Natural Foods, Inc. UNFI is increasingly relying on automation to improve efficiency and support better profitability. A cornerstone of this effort is the deployment of Relex, an AI-based supply-chain platform designed to optimize procurement, improve demand forecasting and reduce waste. As of the first quarter of fiscal 2026, Relex had been rolled out across roughly half of UNFI’s distribution network, with full implementation targeted by the fiscal year-end. Management noted that early benefits are already emerging, including stronger inventory effectiveness and customer fill rates that are trending above levels recorded in fiscal 2024 and 2025.

This technology-driven approach is being paired with targeted investments in automated infrastructure. In the fiscal first quarter, United Natural Foods ramped operations at its new automated natural products distribution center in Sarasota, FL, a facility purpose-built to support high regional demand through faster, more efficient throughput. These initiatives are translating into measurable productivity gains. Throughput, defined as cases moved per hour through distribution centers, increased more than 2% year over year and nearly 10% compared with the same period in fiscal 2024.

Automation is also being scaled alongside UNFI’s Lean Daily Management program, now active across 34 distribution centers. Together, these initiatives are improving execution across safety, quality, delivery and cost metrics. These effectiveness and efficiency actions contributed to a 20-basis-point year-over-year improvement in gross margin in the fiscal first quarter, along with a reduction in operating expenses as a percentage of sales. By combining AI-driven analytics with automated facilities and standardized operating discipline, United Natural Foods is working to build a more resilient supply chain that removes structural costs while supporting a more scalable margin profile.

UNFI vs. Peers: Different Paths to Operational Efficiency

Sysco Corporation’s SYY strategy centers on incremental efficiency gains across its large and complex distribution network. The company continues to invest in routing optimization, warehouse productivity tools and digital systems to improve cases per mile and service accuracy. Rather than prioritizing large-scale facility automation, Sysco is focusing on process discipline and network-wide productivity enhancements. This measured approach supports margin protection and steady operating leverage, reflecting Sysco’s emphasis on scalable, system-level efficiency improvements.

US Foods Holding Corp. USFD is advancing automation through a balanced mix of digital tools and selective physical infrastructure upgrades. The company is expanding the use of AI across customer-facing platforms and supply-chain operations, driving improvements in routing productivity and error reduction. US Foods is also ramping up a semi-automated distribution facility, using early performance data to shape future deployments. Overall, US Foods’ phased approach blends technology-enabled productivity gains with targeted automation to support margin expansion.

The Chefs' Warehouse, Inc. CHEF is improving efficiency through disciplined operations rather than large-scale automation. The company is focused on enhancing route productivity, increasing gross profit per route and improving EBITDA per employee, supported by targeted investments in facilities and fleet. While technology and systems play a supporting role, Chefs’ Warehouse’s strategy is anchored in process optimization and workforce productivity. This approach aligns with Chefs’ Warehouse’s specialty-focused model, where service quality and execution consistency remain key drivers of margin improvement.

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