QUINCY, Mass. — Ahold Delhaize USA is moving forward on its three-year, $480 million initiative to transition its supply chain to an integrated, self-distribution model.
Chris Lewis, executive vice president of supply chain for Ahold Delhaize USA’s Retail Business Services segment, recently informed suppliers by letter that the company has targeted six distribution centers to switch to self-distribution next year. The facilities are located in Assonet, Mass.; Jessup, Md.; Carlisle, Pa.; Manchester, Conn.; and Mauldin S.C.
The Mauldin, S.C., warehouse is part of an acquisition by Ahold Delhaize USA’s Food Lion segment of 62 supermarkets from Southeastern Grocers. That deal is still pending approval by the Federal Trade Commission but is expected to be completed in the first half of next year.
“With the move of all six facilities that will transition into the self-managed network in 2021, it will bring self-distributed Ahold Delhaize USA brand center-store volume to about 65%,” Lewis wrote. “The remaining volume is expected to come into the self-managed network by the end of 2023.”
The initiative, which was unveiled last December, also calls for the purchase of three warehouses from C&S Wholesale Grocers, which has been the primary wholesale supplier for Ahold Delhaize USA. Two of the C&S facilities are located in York, Pa., and one is in Chester, N.Y. C&S has contracted with Ahold Delhaize’s Retail Business Services unit to provide supply chain services during the transition.