Ahold Delhaize USA moves closer to full self-distribution

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Ahold Delhaize USA moves closer to full self-distribution

Ahold Delhaize USA's distribution arm, ADUSA Supply Chain, says that it expects more than 85 percent of its distribution network to be self-managed by the close of 2022.

Five additional distribution centers will be converted to the self-managed network in 2022, bringing the total number of network facilities to 25, up from 17 at the outset of the network’s three-year transformation.

The facilities that will transition into the ADUSA Supply Chain network in 2022 include distribution centers in Bethlehem, Pa., York, Pa., Chester N.Y., and two fully automated frozen facilities in Mountville, Pa., and Plainville, Conn, opening 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 a number of 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.

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