Ahold Delhaize USA Ramps Up Supply Chain Transformation

The ADUSA Supply Chain network has revealed that more than 85% of its extensive East Coast grocery retail supply chain supporting Ahold Delhaize USA’s banners will be self-distributed by the end of 2022. Five more distribution centers will be converted to the self-managed network next year, bringing the total number of network facilities to 25, up from 17 at the start of the network’s three-year transformation.

The facilities that will switch to the ADUSA Supply Chain network in 2022 are distribution centers in Bethlehem, and York, Pa.; Chester N.Y.; and two fully automated frozen facilities in Mountville, Pa., and Plainville, Conn., opening in partnership with Americold. So far this year, the network has converted procurement services for two facilities in Freetown, Mass., into the self-managed network and will open 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,” asserted 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.”

As well as bringing several distribution centers online in the self-distributed network, the transformation also includes the deployment of artificial intelligence-enabled forecasting and replenishment technology, an integrated transportation management system and an integrated workforce management system, among other technologies to boost the network’s efficiency and effectiveness.

“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 the transformation and optimize the network for the future,” added Lewis.

Scarborough, Maine-based ADUSA Supply Chain is a family of supply chain companies that together support one of the largest supply chains on the East Coast, serving the omnichannel grocery brands of Ahold Delhaize USA — Food Lion, Giant Food, The Giant Co., Hannaford, and Stop & Shop, through a self-distribution model. A division of Zaandam, Netherlands-based Ahold Delhaize, Ahold Delhaize USA operates more than 2,000 stores across 23 states and is No. 10 on The PG 100, Progressive Grocer’s 2021 list of the top food and consumables retailers in the United States.