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26 - Delhaize Group - Annual Report 2009
Supply Chain Technology and Logistics
Warehousing, distribution and IT systems are an
integral part of our business and play a key role in
our long-term strategy to drive profitable revenue
growth. In 2008, our U.S. banners embarked on
a multi-year project to converge the U.S. supply
chain systems into one single supply chain master
network built on one common IT infrastructure. This
platform will be leveraged to drive value through
improved visibility on buying conditions and
optimized inventory levels. The first phase of the
conversion of the IT infrastructure was completed
in 2009, including data alignment per item, vendor,
hierarchy, store and distribution locations. Each and
every one of these initial requirements is necessary
for the successful integration of the existing supply
chain organizations.
Delhaize Belgium opened its brand new 12 000 m
2
distribution center for fresh products in the fall of
2009. Stacking and order picking of fresh products
are done semi-automatically, which is unique in
Europe. The new distribution center allows for store
delivery of assortments with very short life-cycles
in small quantities, thus improving the freshness
of the products and reducing inventory losses. This
new facility will be especially beneficial in increasing
profitable revenue growth in the smaller-sized
proximity stores, a fast-growing business segment
for Delhaize Belgium.
Delhaize Belgium made significant progress
in its ”backhauling” project: on the way back to
the distribution center, drivers reload their trucks
at suppliers located in the same service area.
Backhauling requires sophisticated planning and
on-line transportation information systems. Last year,
all trucks were equipped with on-board computers,
guaranteeing real-time communication between
distribution centers and drivers.
In Greece, Alfa Beta has opened a new distribution
center for fresh products, using technologies such
as voice picking. The result has been a reduction
in the cost of logistics and increased efficiency. The
new distribution center, which was acquired in 2008,
Products with short shelf lives make accurate and timely delivery to our stores critically important. As technology
advances, information analysis improves. Innovations in supply chain technology, logistics and supporting IT
systems can significantly contribute to the accuracy of our operational processes and drive our performance.
Supply Chain Technology, Logistics
and IT Systems