Ahold Delhaize USA completes step one in shift to self-distribution

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As part of a major supply chain expansion, Ahold Delhaize USA launched its first six integrated self-distribution centers for retail and e-commerce operations.

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Ahold Delhaize USA completes step one in shift to self-distribution 1

Ahold Delhaize USA said Monday that Freetown Grocery DC in Arsenate, Massachusetts, which supplies a Stop & Shop supermarket chain, has moved from a third-party supplier to a self-managed network. This move gives the 1.1 million square meter factory direct control over inventory and replenishment.

Ahold Delhaize USA completes step one in shift to self-distribution2

Stop & Shop will retain ownership of the factory and fulfill orders, while ADUSA’s Procurement division is responsible for inventory and inventory management. In all, Stop & Shop is located in Quincy, Massachusetts, with more than 400 stores in Massachusetts, Connecticut, Rhode Island, New York and New Jersey.

“This shift is critical to the Stop & Shop brand as it gives us greater control and ultimately allows us to better serve the stores and stores of more than 200 Stop & Shop locations in Massachusetts, Connecticut and Rhode Island. to be.” Labrick, vice president of Stop & Shop Distribution operations, said in a statement.

The plan requires installation of Freetown Fresh (gas station and store) in Arsenate, Massachusetts; Distribution Center in Jessup, Maryland (serves Giant Food); The company will also set up a distribution center (for Giant) in Carlisle, Pennsylvania, to convert its procurement services into a self-managed network by 2021, according to Ahold Delhaize USA.

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Ahold Delhaize USA also plans to open a new distribution facility in Molding, South Carolina, as part of Southeastern Grocers’ acquisition of 62 Bi-Lo and Harveys supermarkets from Southeastern Grocers in June 2020 for the Food Lion and Connecticut supermarket chains. Manchester offers services. Stop and shop. Construction of two new fully automated cold stores in Plainville, Connecticut and Mountville, Pennsylvania is “going smoothly”.

“Our work to transform the supply chain into a future integrated self-distribution model needs to be completed not only on time but also ahead of schedule,” said Chris Lewis, Executive Vice President Supply Chain for Retail Business Services (RBS). States of America. “Today is an important milestone in the acquisition transition of [Freetown Grocery]. We look forward to relocating the other factories this year. Most importantly, we have launched a new plan to provide us with a large-scale improvement of the network. Help . ”

In December 2019, Ahold Delhaize of America announced a $ 480 million three-year plan to expand its supply chain business and transition to self-service distribution including e-commerce channels. This work includes the construction of two new refrigerated warehouses and the acquisition of three warehouses from C&S Wholesale Grocers (one warehouse in York, Pennsylvania, New York and one in Chester, New York), a new warehouse lease in Manchester, Connecticut and one warehouse. C&S facility. In Bethlehem, Pennsylvania.

Ahold Delhaize USA’s distribution network plans to expand facilities to 23 by 2023. It now includes 16 traditional distribution centers and e-commerce, and offers signage to 1970s stores under Stop & Shop, Giant / Martin’s, Giant Food, Food Lion and Hannaford across the East Coast.

The company has partnered with Americold Cold Storage Company to build two auto-cooled warehouses. The Plainville plant will serve Stop & Shop and Hannaford stores in the Northeast and New England, and the Mountville Frozen Food Warehouse will serve Giant Foods, Giant / Martin’s and Lion Food stores in the Mid-Atlantic region. According to the plan, the new facility should be operational in the fourth quarter of 2022.

Ahold Delhaize, the parent company headquartered in Zaandam, The Netherlands, said in its fiscal 2020 earnings report last month that the five U.S. factories going self-distributing in 2021 will result in 65% of the supermarkets to be acquired. Managed by the end of this year. Compared to 40% to 45% in 2020

Ahold Delhaize USA indicated that this shift will help reduce costs through the new ADvantage program, accelerate time to market, increase availability and freshness of customer products, and improve supplier relationships. The company said ADvantage is a supplier collaboration program designed to improve the efficiency of the entire supply chain (from product source to customer hand) between Ahold Delhaize USA and its suppliers.