ADUSA Supply Chain Welcomes New Facility to Self-Managed Network

Distribution center in Pennsylvania supports The Giant Co. and Stop & Shop stores and e-commerce
Marian Zboraj, Progressive Grocer
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The Bethlehem, Pa., facility will transport nonperishable grocery products for more than 210 Stop & Shop and The Giant Co. stores and e-commerce centers.

As part of its supply chain transformation, the ADUSA Supply Chain network has converted its first facility of 2022 into a self-managed network to support two Ahold Delhaize USA banners. Located in Bethlehem, Pa., this latest conversion continues the company’s three-year journey to establish an integrated self-distribution network to support Ahold Delhaize brands’ omnichannel growth.

In its fourth-quarter earnings report, Ahold Delhaize’s online sales were up 30.5% in constant currency. Excluding its FreshDirect acquisition, U.S. online sales grew 7.5% in constant currency, building on the significant 128.5% growth experienced in the same quarter last year.

The Bethlehem facility will help support this omnichannel growth. The 1.2 million-square-foot distribution center will receive, select and transport 200 million cases of nonperishable grocery products annually for more than 210 Stop & Shop and The Giant Co. stores and e-commerce centers. The facility is equipped with the supply chain network’s end-to-end forecasting and replenishment technology from Atlanta-based Relex Solutions to enable greater precision in order accuracy, resulting in better in-stocks, fresher products and reduced food waste.

“The conversion of the Bethlehem facility is an important milestone,” said Bob L’Heureux, VP, supply chain services for ADUSA Supply Chain Services, and self-distribution implementation lead. “It’s not only the first facility to convert in 2022, but with the addition of this distribution center, we now have the first facility in the network that serves more than one Ahold Delhaize USA brand. This is an important capability to add as we continue to transform the supply chain network into an integrated flexible model that supports omnichannel growth for the brands we serve.”

With the Bethlehem facility, Ahold Delhaize’s total number of self-managed network facilities is now 21. ADUSA Distribution Bethlehem is one of seven new and acquired warehouses revealed in December 2019 as part of Ahold Delhaize companies’ supply chain transformation. 

The Bethlehem facility employs 700 people locally. Associates at the Bethlehem site are employed by ADUSA Distribution, ADUSA Transportation, or C&S Wholesale Grocers, the third-party labor management provider for the facility.

“We’re excited that this facility has officially joined the ADUSA Supply Chain network,” said Chris Shaffer, campus lead for ADUSA Distribution Bethlehem. “Ahold Delhaize USA companies have been serving the Bethlehem community for many years, and we look forward to being a good neighbor and supporting this community for many years to come.”

Ahold Delhaize recently published its 2021 Annual Report, which provides an overview of the  company’s financial and environmental, social and governance (ESG) performance over the past year.  The report will be on the agenda of Ahold Delhaize’s April 13 Annual General Meeting of Shareholders. 

Scarborough, Maine-based ADUSA Supply Chain is a family of supply chain companies serving the omnichannel grocery banners of Ahold Delhaize USA – Food Lion, Giant Food, The Giant Co., Hannaford, and Stop & Shop – through a self-distribution model. Ahold Delhaize USA, a division of Zaandam, Netherlands-based Ahold Delhaize, 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. Keene, N.H.-based C&S Wholesale Grocers is No. 16 on The PG 100.

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