The Big Chill: Ahold Delhaize Teams with Americold as Part of Supply Chain Transformation
Food Lion is one of Ahold Delhaize USA’s banners that will benefit from the self-distribution model.
Ahold Delhaize USA announced plans last December to transform its U.S. supply chain operations over the next three years into a fully integrated self-distribution model. The Quincy, Mass.-based grocery operator, which operates several banners on the East Coast including Food Lion, Giant Food, Hannaford and Stop & Shop, recently provided more insight to what’s coming.
Ahold Delhaize USA announced it’s teaming with Americold as its partner to build two fully automated frozen warehouses that are a key part of the supply chain transformation. The facilities will be located in Plainville, Conn., which will serve Ahold Delhaize USA’s Northeast brands, and in Mountville, Pa., which will serve Ahold Delhaize USA’s Mid-Atlantic brands. The plan will expand cold-storage space by 24 million cubic feet, or 500,000 square feet.
“Americold is a leading expert in this space, and we’re confident in their abilities to build state-of-the-art facilities that will meet our needs and serve our omnichannel growth strategy,” said Chris Lewis, executive vice president of supply chain for Retail Business Services, the services company for Ahold Delhaize USA.
The new locations will provide optimal facility locations near the its banners, Ahold Delhaize USA said, and will enable local product expansion, increased product freshness and speed of delivery. The two warehouses will also create about 200 new jobs each and infuse additional economic benefits to local economies as a result of this growth, the company stated.
In addition, Ahold Delhaize USA said the new facilities enable it to innovate in new frozen storage warehouse design, including transforming facilities to enhance automation and leverage technology advancements. Those include an integrated transportation management system and end-to-end forecasting and replenishment technology, designed to support the omnichannel experience and multi-channel growth.
“[This] reinforces how Ahold Delhaize USA is transforming [its] infrastructure to support the next generation of grocery retail,” Lewis added. “Through this expansion, we will continue to modernize our supply chain distribution, transportation and procurement through a fully integrated, self-distribution model that will be managed by our companies directly and locally. This will result in efficiencies and, most importantly, product availability and freshness for customers of our local brands – now and in the future – whenever, wherever and however they choose to shop.”
Ahold Delhaize USA companies’ distribution networks include 16 traditional and e-commerce distribution centers. The network will grow to 23 facilities by 2023.