Ahold Delhaize USA proceeds with shift to self-distribution

As part of an ongoing transition, Ahold Delhaize USA has converted its first supply-chain facility to its integrated, self-managed network in 2022.

ADUSA Supply Chain, the grocery retailer’s distribution and logistics arm, said Tuesday that its 1.2 million-square-foot distribution center in Bethlehem, Pa., has joined the network, bringing its total number of self-distributed facilities to 21. The Bethlehem DC, a leased facility acquired from C&S Wholesale Grocers, receives, selects and transports 200 million cases of nonperishable grocery products annually for more than 210 Stop & Shop and The Giant Company stores and e-commerce centers.

“The conversion of the Bethlehem facility is an important milestone,” Bob L’Heureux, vice president of supply chain services for ADUSA and self-distribution implementation lead, said 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.”

Under a three-year supply chain transformation unveiled in December 2019, Zaandam, Netherlands-based parent Ahold Delhaize plans more than 85% of its U.S. distribution network to be self-managed by the end of 2022. The company hit its transition target last October, with the network reaching self-managed center-store volume of 65%.

Related:Ahold Delhaize hits 2021 target in shift to U.S. self-distribution

Four more DCs are slated to be converted to self-management this 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.

The Bethlehem DC, which has 700 local employees, uses the network’s end-to-end forecasting and replenishment technology from Relex Solutions, which ADUSA said sharpens order accuracy, improves in-stocks and product freshness, and reduces food waste.

“We’re excited that this facility has officially joined the ADUSA Supply Chain network,” commented Chris Shaffer, campus lead for ADUSA Distribution Bethlehem. “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.”

Other facilities slated to transition to the ADUSA Supply Chain self-managed network in 2022 include DCs in York, Pa., and Chester, N.Y., plus two automated frozen warehouses in Mountville, Pa., and Plainville, Conn., opening in partnership with cold storage provider Americold.

Related:Ahold Delhaize USA opens new distribution center in Connecticut

Most recently, in September, ADUSA opened a new 1 million-square-foot DC in Manchester, Conn., to supply more than 450 Stop & Shop stores and e-commerce centers. And in July, ADUSA began operations at a new DC in Mauldin, S.C., that was acquired from C&S and now supplies Food Lion supermarkets.