Ahold Delhaize USA intends to invest $480 million to transform and expand its supply chain operations over the next three years.
The investment supports a strategy to transition the supply chain network into a fully-integrated, self-distribution model. It includes the acquisition of three warehouse assets from C&S Wholesale Grocers and new leases on another two facilities.
Ahold Delhaize companies currently partner with C&S to service select brands in the U.S. Retail Business Service—the brand’s services company. C&S will continue to serve as the third-party labor provider at three locations Ahold Delhaize is acquiring, including two locations in York, PA, and one in Chester, NY.
“C&S is uniquely positioned for the long-term, we have a strong leadership team with some of the best industry veterans; an expanding footprint in key geographic areas; innovative technology solutions that enhance the consumer experience; and the most cost-efficient products and services in the market. We are confident about our future,” said Rick Cohen, chairman at C&S.
Additionally, C&S recently revealed its expansion of operations into the Pacific Northwest with the addition of a new warehouse in Troutdale, OR. It will open by summer 2020. C&S is already servicing several retail partners in the area.
Meanwhile, Ahold Delhaize will also partner with various companies to build two fully-automated frozen facilities—one will serve the Mid-Atlantic market and the other will serve the Northeast—to provide the infrastructure needed to support aggressive omni-channel growth plans.
Through the three-year strategy, Ahold Delhaize and its companies will increase distribution presence with seven new and acquired warehouses and pursue optimal facility locations near its local brands and their customers.
Additionally, the company will innovate in warehouse design, including transforming facilities to enhance automation and leverage technology advancements, such as an integrated transportation management system and end-to-end forecasting and replenishment technology.
“Part of our strategy is leveraging the best of automation and technology,” said Chris Lewis, EVP of supply chain for retail business services at Ahold Delhaize. “Each facility will also maintain a significant workforce. We recognize the future of work is changing and we’re taking active steps to help our workforce adapt by enabling them to work more efficiently.”