PEAPOD OPENS FOURTH DC IN SAN FRANCISCO

PATRICK SCIACCA

SKOKIE, Ill. -- Peapod, the Internet grocery service here, continues to execute its strategic growth plan with the recent opening of its fourth dedicated fulfillment center in the San Francisco Bay area.

The new DC, which measures 45,000 square feet and will initially service 7,000 Bay area customers, utilizes a warehouse management system developed by Peapod.

There were some enhancements made to the warehouse management system at the Bay area distribution center to enable it to support scanner technology, said Dan Rabinowitz, senior vice president and chief financial officer for Peapod. The modified WMS should help expedite the order picking process with improved picking efficiency, according to the service provider. Peapod's three other fulfillment centers in Boston, Chicago and New Hyde Park, N.Y., are scheduled to be retrofitted with the scanner upgrade, Rabinowitz told SN.

"We continue to make [system] enhancements as necessary," he added.

Unlike its much smaller 15,000-square-foot New York facility, which is routed through Peapod's 70,000-square-foot Chicago warehouse, the San Francisco fulfillment center utilizes its own routing system to schedule deliveries on a daily basis.

The decision to route locally largely depends on volume, Peapod officials noted.

The San Francisco distribution center is one of Peapod's larger operations; the Chicago facility is the largest, measuring 70,000 square feet.

The new distribution center will host more than 20,000 dry grocery, frozen, dairy products and perishable items to its on-line consumers, according to officials.

Several major suppliers will play crucial roles in stocking the new warehouse. Walgreen Co., Deerfield, Ill., will supply the warehouse with health and beauty care products while Andronico's Market, Albany, Calif., will supply the warehouse with meat, fish, poultry, fresh bakery goods and prepared foods.

Certified Grocers of California, Los Angeles will provide the Internet retailer with dry goods, dairy, frozen and private labels.