211: How Vertical Integration Helps Kwik Trip Achieve Manufacturing Excellence with Paul Blank and Scott Schiebel

Have you ever stopped to think about what goes into getting your favorite Kwik Trip products onto your table?

In this episode, we explore the impressive vertical integration model that Kwik Trip uses, a strategy that allows them to maintain almost complete control over their supply chain. Paul Blank, Director of Operations, and Scott Schiebel, Automation Manager, share insights on how this approach not only enhances quality and food safety but also helps the company navigate supply chain challenges that have become all too common in recent years.

Kwik Trip’s commitment to vertical integration means they handle everything from manufacturing to distribution in-house. With five major food production facilities and their own trucking operations, they can ensure that products like milk and baked goods are delivered fresh to stores—sometimes in less than 24 hours! The episode highlights the crucial role of automation in streamlining these processes, including ingredients prep and order fulfillment.

You’ll also hear how Kwik Trip prioritizes its workforce despite the big focus on automation. Paul and Scott emphasize that automation is not about replacing jobs but enhancing operations to meet rising demand.

In this episode, find out:

• Paul and Scott give us a quick overview of what Kwik Trip is
• Why Kwik Trip uses a vertical integration model and its impact on logistics and supply chain issues
• How using automation makes vertical integration a powerful strategy
• An overview of some of the more recent facilities set up at Kwik Trip and how they’ve improved operations
• Why Kwik Trip is a great example of a company using digital transformation to refine production and distribution
• How the team at Kwik Trip makes decisions on production types such as batch and continuous processes
• How automation has impacted the people behind the process and why it doesn’t mean that anyone loses a job
• Why predictive maintenance is essential for keeping plants running smoothly
• How operations leaders collaborate within Kwik Trip
• How Kwik Trip decides what to produce in-house vs. outsource to other manufacturers
• The process behind building the right tech for each production line and why everything starts with food safety
• How Kwik Trip’s food innovation team maintains great quality and tests out new ideas for feasibility
• How the company collaborates and seeks out vendors and OEMs to work with
• Tips for any manufacturers considering the vertical integration model
• Kwik Trip’s approach to training, hiring and retaining great talent
• Some stats on the impressive numbers of products that come off the Kwik Trip production lines

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Tweetable Quotes:

• “We make it. We ship it. We sell it. This allows us to control pricing that's best for our guest. It also allows us to manage quality and food safety.” – Paul Blank
• "Our maintenance staff has a CMMS program, and they are diligent about PMs and staying on top of the equipment in terms of the routine needs. And that pays dividends long term since there's less unexpected downtime." – Scott Schiebel
• "Automation really is part of our growth pattern. There isn't a project that we take on without evaluating whether or not automation fits or how it may fit. It doesn't mean we automate everything, but where we do, Kwik Trip grows as a whole." – Paul Blank

Links & mentions:

• Kwik Trip, a popular chain of convenience stores located throughout Wisconsin, Minnesota, and the Upper Peninsula of Michigan

Make sure to visit http://manufacturinghappyhour.com for detailed show notes and a full list of resources mentioned in this episode. Stay Innovative, Stay Thirsty.