Press Release

As the grocery retail industry continues to transform, one of the keys to success lies in omnichannel and being there for customers whenever, wherever, however they choose to shop. Central to meeting the needs of omnichannel shoppers is having a strong in-stock position and fresher products that spend less time in transport and on shelves and give customers more days of life at home.

As we look to the future, the ability to accurately predict demand and enable teams to respond to that information rapidly is critical. Future demand systems must enable:

• Fresher products: Consumers are demanding quality, fresh, affordable products. Increasing days of life for fresh items is key to meeting this need.
• Agile decision-making: Grocery retailers must be able to react to and respond to the unique needs of consumers shopping across channels with both fresh products and center store items.
• Precision: Having more inventory doesn’t always translate to better in-stocks. One of the keys to success is having the right inventory, not the most inventory.

That’s why I’m exceptionally proud that supply chain in partnership with Ahold Delhaize USA’s local brands Food Lion and Hannaford, completed the implementation of an end-to-end forecasting and replenishment technology provided by RELEX. This innovative, AI-enabled solution allows teams to utilize retail forecasts, inventory and projected orders to drive distribution center replenishment practices. Among several other exciting capabilities, this enables automatic allocations of product to the stores most in need during scarcity situations. The solution will also support continued growth through its flexibility and predictive capabilities.

The implementation of end-to-end forecasting and replenishment technology is part of the broader evolution in the way Ahold Delhaize USA companies think about and manage demand. Implementation of one process, one system for demand is a critical component of the overall transformation of the supply chain to an integrated self-distribution model for the future.

This milestone completes the first phase of work announced in January 2019. That work will continue as we transform the U.S. supply chain network for the future.

 

Andre Shaw is SVP, Demand Management for ADUSA Procurement. ADUSA Procurement supports Ahold Delhaize USA’s supply chain network, one of the largest supply chains on the East Coast.