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Delhaize Group - Annual Report 2010 23
DELHAIZE GROUP
AT A GLANCE
OUR
STRATEGY
OUR ACTIVITIES
IN 2010 CORPORATE
GOVERNANCE STATEMENT RISK
FACTORS FINANCIAL
STATEMENTS SHAREHOLDER
INFORMATION
> Generate Profitable Revenue Growth > Pursue Best-in-Class Execution > Operate as a Responsible Corporate Citizen
Cash Generation through
Local Initiatives
In 2010, Delhaize Belgium successfully concluded its 3-year Excel
Plan that started in 2008 and aimed at accelerating growth and
improving profitability. The plan included many sales building
initiatives as well as a large variety of projects to increase efficiency
and generate cost savings.
Some were relatively easy such as the review of maintenance,
consulting or other purchased third party services. Others were
more complex, such as improved transportation planning and
backhauling. Some required significant capital expenditures
to obtain the planned savings. The best example here is the
construction of the brand new automated distribution center near
Brussels for ultra fresh products like cheese, sliced meats, poultry
and fresh ready meals. 2010 was the first full year of operation of
the new facility. It gradually increased its capacity and significantly
improved productivity. The facility is unique in that sense that it
enables Delhaize Belgium to offer smaller order sizes to the large
park of small convenience and proximity stores in its store network.
As such, the new distribution center combines three essential
elements: it improves the productivity of the logistics function;
it improves freshness of the products to the store and as a result,
helps to grow sales. Alfa Beta also invested in the expansion and
modernization of its distribution centers. In Inofita, close to Athens,
our Greek operations opened a new facility for fresh products
measuring 30 000 m² for fresh, ultra-fresh and frozen products.
In addition, productivity improved due to the installation of voice
picking in two warehouses for fresh produce.
As in prior years, our operating companies continued to test and
implement systems that help associates in the stores to manage
inventory. At Delhaize Belgium, further improvements were made to
the combination of assortment management, planogram software
and computer assisted ordering. In short, a combination of tools
to have the right product in the right place and in the right quantity
in all of our stores. During 2010, 22 stores were included in the test
and in 2011, 70 more will follow.
m2
new distribution
center in Greece
30 000
Jim Hamilton
Hannaford -
District Manager
“Determination: in this
business, you can never
settle or rest on your
laurels because there is
always someone out there
working harder than you
are. Setting goals and
sticking to them creates
stronger people and a
better team.”