Ahold Delhaize USA has transitioned its first distribution center from a third-party vendor to its self-managed network, providing direct control of inventory and replenishment at this facility. The distribution center, located at Freetown Grocery in Massachusetts, is 1.1 million square feet and fulfills demand for the Stop & Shop brand. Stop & Shop continues to own the facility and fulfill orders, while Ahold Delhaize USA Procurement manages replenishment and inventory.
“This transition is an important one for the Stop & Shop brand because it gives us more control and ultimately enables us to better serve our stores and our customers at more than 200 Stop & Shop locations across Massachusetts, Connecticut and Rhode Island,” said Jim Labrecque, VP of distribution operations at Stop & Shop, in a statement.
This is one of six distribution centers to transition services into the self-managed network in 2021. In addition to Freetown Grocery, a distribution center in Jessup, Maryland and a distribution center in Carlisle, Pennsylvania will also transition procurement services into the self-managed network in 2021. Also, Ahold Delhaize USA Distribution will open new facilities in Mauldin, South Carolina and Manchester, Connecticut. Construction is also underway for two new fully automated frozen facilities.
“Our work to transform the supply chain to an integrated self-distribution model of the future is not only on-time, but ahead of schedule,” said Chris Lewis, EVP, supply chain for retail business services, Ahold Delhaize USA’s services company, in a statement. “Today marks an important milestone in our journey with the transition of procurement at this facility, and we’re looking forward to other facility transitions this year. On top of that, we’ve launched new programs to begin to help us as we optimize the network at scale.”
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Image: Ahold Delhaize