Ahold Delhaize USA opens new distribution center in Connecticut

Ahold Delhaize USA has opened a new 1 million-square-foot distribution center in Manchester, Conn., to serve its Stop & Shop supermarket chain.

ADUSA Supply Chain, the retailer’s distribution and logistics arm, said Monday that the DC will receive, select and transport 88 million cases of nonperishable grocery products annually for more than 450 Stop & Shop stores and e-commerce centers. The facility also features state-of-the-art technology to support “the future of food distribution,” according to the company.

Implemented by Ahold Delhaize USA’s Retail Business Services subsidiary, the DC’s technology includes Manhattan Associates’ Manhattan Active Warehouse Management system, a transportation and warehouse management solution. ADUSA said the dual solution will sharpen accuracy across transportation and labor management, improve efficiency at the site and minimize miles traveled. The facility also leverages end-to-end forecasting and replenishment technology from RELEX Solutions, which provides added precision in order accuracy and, in turn, improved in-stocks, fresher products and less food waste.

“The opening of the Manchester facility is an important milestone in the transformation of the supply chain serving Ahold Delhaize USA’s local brands,” ADUSA Supply Chain President Chris Lewis said in a statement. “With the addition of Manchester, we have added more than 2 million square feet of distribution capacity to our network in less than two months. Not only is Manchester an important part of rapid network expansion, it’s also well-equipped with technology solutions that will boost efficiency and ultimately result in the faster delivery of fresher products for consumers, no matter how they choose to shop.”

Related:Ahold Delhaize USA’s new Mauldin distribution center gets up and running

At 1 million square feet, the Manchester DC will be one of the ADUSA network's largest facilities.

ADUSA noted that the Manchester DC marks the first facility in its network to carry the ADUSA Supply Chain brand. Based in Scarborough, Maine, the ADUSA Supply Chain family of companies includes ADUSA Supply Chain Services, ADUSA Distribution, ADUSA Transportation and ADUSA Procurement. The network serves the 2,044 stores and e-commerce operations of Ahold Delhaize USA’s Stop & Shop, Giant Food, Giant/Martin’s, Food Lion and Hannaford grocery chains on the East Coast.

The Manchester DC will employ more than 500 people locally when fully operational. Associates there will be employees of ADUSA Distribution, ADUSA Transportation and third-party labor management provider FHI, as well as of Lily and NFI, the facility’s dedicated transportation providers.

“We’re excited to officially be part of the Manchester community,” commented Zach Napolitano, campus lead for ADUSA Distribution Manchester. “Ahold Delhaize USA companies have been serving the Manchester community for many years, and we look forward to being a good neighbor and supporting this community for many years to come.”

Related:Ahold Delhaize USA moves closer to full self-distribution

The Manchester, Conn., facility is the first to bear the ADUSA Supply Chain brand.

The opening of the Manchester site comes two months after Ahold Delhaize USA began operations at its new DC in Mauldin, S.C., acquired C&S Wholesale Grocers. The retailer purchased the 1.1 million-square-foot from C&S in May as part of its June 2020 acquisition of 62 Bi-Lo and Harveys stores from Southeastern Grocers. The C&S facility had served as Bi-Lo’s distribution center.

Ahold Delhaize is more than halfway through a three-year supply chain transformation in which the company expects more than 85% of its distribution network to be self-managed by the close of 2022. Plans call for five more DCs to be converted to self-management next year, raising the total number of integrated self-distribution facilities for store and e-commerce fulfillment to 25, up from 15 when the $480 million plan was announced in December 2019.

Facilities transitioning to the ADUSA Supply Chain network in 2022 include DCs in Bethlehem and York, Pa.; Chester, N.Y.; and two fully automated frozen warehouses in Mountville, Pa., and Plainville, Conn., opening in partnership with cold storage provider Americold.