Ahold Delhaize Progresses Toward Self-Distribution

ADUSA Supply Chain Services, a supply chain company of Ahold Delhaize USA, announced March 1 it has converted the first facility of 2022 into a self-managed network. The facility located in Bethlehem, Pa., which supports The Giant Co. and Stop & Shop, brings the total number of network facilities to 21 and employs 700 people.

The company said this announcement is part of the three-year journey to establish an integrated, self-distribution network to support the ADUSA’s omnichannel growth.

“The conversion of the Bethlehem facility is an important milestone,” said Bob L’Heureux, VP of supply chain services and self-distribution implementation lead, in a statement. “It’s not only the first facility to convert in 2022, but with the addition of this distribution center, we now have the first facility in the network that serves more than one Ahold Delhaize USA brand. This is an important capability to add as we continue to transform the supply chain network into an integrated, flexible model that supports omnichannel growth for the brands we serve.”

The company said the 1.2 million-square-foot distribution center receives, selects and transports 200 million cases of nonperishable grocery products annually for more than 210 Stop & Shop and The Giant Co. stores and e-commerce centers.

The facility is equipped with the supply chain network’s end-to-end forecasting and replenishment technology from RELEX Solutions, which enables greater precision in order accuracy resulting in better in-stocks, fresher products and reduced food waste.

“We’re excited that this facility has officially joined the ADUSA Supply Chain network,” said Chris Shaffer, campus lead for ADUSA Distribution Bethlehem, in a statement. “Ahold Delhaize USA companies have been serving the Bethlehem community for many years, and we look forward to being a good neighbor and supporting this community for many years to come.”

The company said its transformation to an integrated self-distribution model for the future is expected to be completed on schedule in 2023. Ahold Delhaize announced the supply chain initiative in late 2019.