A key product attribute of food is “freshness.” Although this basic attribute has the ability to create a significant
competitive advantage because of its importance to consumers, many retailers and restaurants continually struggle
to improve it. The ability to produce and sell fresh food has many dimensions, but examining a product’s supply chain
and finding ways to make it faster and more productive can often lead to improvements in “freshness.”
In 2007, Wawa partnered with Reading, Pa.-based Penske Logistics to introduce a major improvement in replenishing
Wawa stores with a few key product categories that demand freshness. The result was the creation of the Fresh
Channel, which features the daily collection, staging and delivery of fresh-baked donuts, bagels, sandwich rolls,
soft pretzels and refrigerated commissary items to every Wawa store. The continued benefits of the Fresh Channel
include heightened consumer appeal, streamlined store operations, 99 percent on-time delivery and reduced cost of
deliveries through consolidation. The continued success of the program is a testament to the business acumen and
collaboration skills of Wawa and Penske.
This case study will highlight how the Fresh Channel was conceived, what challenges were faced, how the program
operates today, and how its key accomplishments have served both companies. Furthermore, this report will detail
key success factors by examining the program through “A Day in the Life of a Fresh Channel Route Driver.”