News • 25.02.2021

Ahold Delhaize USA companies expand micro-fulfillment capabilities

Readying an omnichannel supply chain

Rendering of a logistics fulfillment station; copyright: Ahold Delhaize USA...
Rendering of new EFC in Philadelphia, Pennsylvania
Source: Ahold Delhaize USA

Peapod Digital Labs, Ahold Delhaize USA’s digital, e-commerce and commercial engine, announced a new micro-fulfillment technology pilot with The GIANT Company in the Philadelphia market.

Part of an e-commerce fulfillment center (EFC), the pilot leverages Swisslog’s solution which includes AutoStore technology empowered by Swisslog’s SynQ software, as well as Peapod Digital Labs’ proprietary manual picking capabilities.

The pilot launches as Ahold Delhaize USA companies continue to expand e-commerce fulfillment capabilities as part of readying an omnichannel supply chain and supporting the U.S. brands as they pursue their ambitions of becoming the leading omnichannel grocery retailer in their markets.

“Over the past year, all Ahold Delhaize USA companies have seen a tremendous increase in online sales growth, and we believe this growth is here to stay,” said JJ Fleeman, president of Peapod Digital Labs and Chief E-commerce Officer. “As we think about shifting consumer expectations and the future of omnichannel shopping, we must continue to build and evolve our already strong infrastructure to optimize pick-up and delivery.”

The EFC is planned for the Philadelphia market to help meet customer demand in Center City and South Philadelphia. This location is expected to fulfill approximately 15,000 online orders per week for delivery to customers’ homes.

“This pilot is an exciting milestone in The GIANT Company’s omnichannel evolution as we work to transform the online grocery experience for our customers,” said Nicholas Bertram, president, The GIANT Company. “As we continue to see incredible demand for GIANT Direct across the Philadelphia region, working with Swisslog to incorporate state-of-the-art technology like AutoStore will not only bolster our overall e-commerce platform for future growth but also significantly increase our operating capacity, allowing us to deliver a faster, best-in-class experience to more customers each week.”

Rendering of a logistics fulfillment station; copyright: Ahold Delhaize USA...
Rendering of new EFC in Philadelphia, Pennsylvania
Source: Ahold Delhaize USA

The hive robotic technology for the new EFC will include the AutoStore storage and retrieval system, empowered by Swisslog’s SynQ software and pick stations, as well as Peapod Digital Labs’ proprietary manual picking capabilities. Applying the advantages of the AutoStore grid storage density and goods-to-person productivity gains in tandem with Peapod Digital Labs’ picking system will create a flexible solution ideal for streamlining grocery e-commerce order fulfillment.

Ahold Delhaize USA companies will continue other micro-fulfillment tests, such as the multi-shuttle pilot with Stop & Shop and TakeOff Technologies in the Hartford, Conn., market. Additional micro-fulfillment pilots will be announced in the coming months.  

Once built, the new EFC will add to Ahold Delhaize USA companies’ growing supply chain. As of March 1, the supply chain will include 18 self-managed traditional distribution centers, 28 EFCs and over 1,100 click and collect locations. By 2023, this network will increase to more than 27 distribution centers with additional EFC and click and collect growth as part of the overall transformation of the omnichannel supply chain.

“As we continue to transform the supply chain for the future, we’re doing so with the lens of creating a truly omnichannel supply chain, there for customers whenever, wherever, however they want to shop,” said Chris Lewis, EVP, Supply Chain for Retail Business Services, Ahold Delhaize USA’s services company. “By 2023, Ahold Delhaize USA companies will be serviced by one of the largest supply chains and private fleets on the East Coast. Continuing to explore ways to maximize the total infrastructure is critical as we create an omnichannel supply chain of the future.”

Source: Ahold Delhaize USA

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