A 600,000-square-foot facility in Chester, New York, will deliver products to Hannaford and Stop & Shop stores.
ADUSA Distribution, the supply chain arm of Ahold Delhaize USA, announced this week that it has converted a distribution center in Chester, New York, to the self-managed network it has been building out over the past few years.
The 600,000-square-foot multi-temperature site, which was formerly run by C&S Wholesale Grocers, will route an estimated 65 million cases of product each year for Hannaford and Stop & Shop stores. The facility features more than 350 trailer spots with nearly 100 dock doors and will employ close to 500 people.
“We’re excited to welcome Chester into the supply chain network,” said Sanja Krajnovic, executive vice president of distribution and transportation with ADUSA, in a statement. “The conversion of the site is an important step in the completion of our work to move to a self-distributed network.”
Ahold Delhaize USA’s self-distribution push began in 2019 and now includes around two dozen facilities up and down the East Coast. Last year, the company added facilities in York and Bethlehem, Pennsylvania, and moved a total of 1.2 billion cases through its supply chain system. It previously stated plans to have 85% of its distribution network under company control by the end of 2022.
While many grocers have chosen to sell off their distribution facilities over the years, retailers like Ahold Delhaize and Dollar General have embraced company-owned distribution as a way to shave costs and maintain tighter control over their supply chain. Executives have noted that owning distribution has helped retailers keep costs down amid soaring inflation.
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