Delhaize America, the U.S.-based branch of the European supermarket conglomerate Ahold Delhaize, has long aimed to offer its customers the product range they want and the quality they deserve. The company, which owns supermarket chains like Food Lion and Hannaford, has recently undertaken concrete steps to improve the freshness level of its fruits and vegetables. Learn how Delhaize America has overhauled its supply chain to increase freshness in its produce department.
Situation: Delhaize America Identifies Problems With Its Produce Offerings
For years, Delhaize America has struggled to perfect perishable procurement, which is one of the biggest challenges in retail. In 2013, the company’s woes culminated in a management shakeup and new executive team for its produce department.
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With over 1,000 Food Lion stores spread across the Southeast and nearly 200 Hannaford stores in the Northeast, Delhaize America has long had a serious logistical challenge on its hands. Together, the large number of stores and extensive geographic area make ensuring freshness difficult across the perishables category. Since poor quality and selection in the produce department can deter customers from shopping at a supermarket altogether, Delhaize America recognized the need to take a proactive approach to freshness.
Approach: Delhaize America Partners With RELEX Solutions
The company, which is based in Salisbury, North Carolina, recently opted to partner with RELEX Solutions to improve its supply chain planning. The partnership will include forecasting and inventory management, effectively handling fresh categories at Delhaize America’s distribution centers.
Though RELEX Solutions has only operated in North America since 2015, the supply chain management company has already earned its stripes in Europe. After helping European supermarket chains successfully manage fresh products and those with short shelf lives, the company aims to do the same in the U.S.
Delhaize America is optimistic that this partnership will enable the company to improve product availability in stores and decrease the amount of product stored in distribution centers. This will also improve customers’ experiences and drive sales in Food Lion and Hannaford stores. In response to the RELEX Solutions partnership, Chris Lewis, the supply chain senior vice president of Delhaize America, stated, “As an organization, we are continuously looking for ways to continue to innovate, enhance and optimize the way we procure and forecast product to our retail locations, ensuring our customers have the freshest merchandise available.”
Impact and Advantage
If RELEX Solutions does succeed in overhauling Delhaize America’s perishable supply chain, the supermarket division could realize wide-ranging benefits. While much of the grocery industry is investing in online shopping, one category still drives customers to physical stores. For many customers, high-quality produce and a wide selection of perishables are deciding factors when they plan where to shop for groceries. If Delhaize America can drive demand with its produce department, the division may successfully win brick-and-mortar shoppers across the East Coast.
The partnership between Delhaize America and RELEX Solutions is still new, having just been announced in March 2017. Those who manage supply chains in the grocery industry should watch closely to assess how much improved perishables boost sales and growth at Delhaize America.[/show_to]
