Ahold Delhaize USA’s supply chain transformation is getting closer to reaching its goal of creating an integrated, self-distribution supply network on the East Coast. ADUSA Supply Chain network reported that by the end of 2022, the supermarket chain would have direct inventory control and replenishment in more than 85% of the grocery supply network.
Five additional distribution centers will convert to the self-distribution chain in 2022, bringing the total number of network facilities to 25, up from 17 at the start of the network’s three-year transformation.
ADUSA Supply Chain network said the facilities transitioning to self-distribution in 2022 include distribution centers in Bethlehem and York, Pennsylvania, Chester, New York, and two fully automated frozen facilities in Mountville, Pennsylvania, and Plainville, Connecticut, which will open in partnership with Americold.
So far in 2021, the ADUSA Supply Chain network has converted procurement services for two facilities in Freetown, Mass., into the self-managed network and will round out the year by opening two new distribution centers in Mauldin, S.C. and Manchester, Conn., as well as converting procurement services at facilities in Jessup, Md., and Carlisle, Pa.
“This is one of the largest supply chain transformations ever undertaken in our industry,” said Chris Lewis, President of ADUSA Supply Chain. “Because of the commitment of our teams and a strong ecosystem of partners, we are on track to create not only one of the biggest supply chains on the East Coast but the most efficient and effective.”
In addition to bringing several distribution centers online in the self-distributed network, the transformation also includes the deployment of innovative, artificial-intelligence enabled forecasting and replenishment technology, an integrated transportation management system and an integrated workforce management system, among other technology to enhance the efficiency and effectiveness of the network.
“We look forward to continuing to work with our partners in other Ahold Delhaize USA companies, the supplier community, our technology and operations providers, and more to continue to the transformation and optimize the network for the future,” said Lewis.
In December 2019, Ahold Delhaize USA announced plans to transform and expand supply chain operations on the East Coast as part of a three-year strategy to move the U.S. supply network to an integrated self-distribution system. This transformation will enable the supermarket chain’s U.S. operations to reduce costs, improve distribution speed, enhance supplier relationships and improve product availability and freshness for customers.