Mechanization

At Ahold Delhaize we have implemented a variety of mechanization solutions for both our supply chain and e-commerce businesses. Mechanization covers any automated physical handling of items in our operations, from creating mixed-case pallets destined for our stores, to bringing individual products to one of our brands’ associates to pick and prepare an online order. 

Mechanization at Ahold Delhaize and its brands

The grocery industry is undergoing a significant transformation, including the rapid growth of e-commerce, increasing competition and changing customer needs. Mechanization is a vital part in driving our strategic priorities and a key enabler that allows Ahold Delhaize to respond to these industry challenges. Mechanization allows us to improve our customer value proposition, increase operational efficiency, help our people thrive and meet our sustainability ambitions. 

1. Customer value proposition: In recent years, customer behavior has shifted towards online shopping and same-day delivery. Mechanized facilities enable Ahold Delhaize brands to meet these increasing demands by rapidly processing orders through their store or facility – an order placed in the morning could therefore be delivered in time for dinner. At the same time, given the continued preference for traditional offline grocery shopping, it’s critical that we can deliver to our brands’ stores in the best way possible. For example, the mechanized systems in Delhaize Belgium that deliver products packed in such a way that it saves time for our associates in the stores.
2. Operational efficiency: Mechanization improves labor efficiency by reducing non-productive activities and automating warehouse procedures. For example, mechanization brings products to associates working in the warehouses to save time spent collecting them for online orders.  Additionally, the high-density design of mechanization allows us to get more capacity from the same location. A recent store distribution center for Albert Heijn gave 50% more capacity for the same footprint due to the new mechanization system. Finally, the combination of automated hardware and smart software enable our brands to pack orders more densely, improving transport efficiency.
3. Healthy communities and planet: Mechanization allows sustainability benefits by using energy-efficient equipment with the latest technology. For example, in bol’s huge shuttle system – which brings the hundreds of transport bins with stock items to the associate preparing the orders – stores and reuses energy released when the transport containers brake. Moreover, the space-saving impact of mechanization reduces warehouse footprint and so reduces carbon emissions. Our installations at The GIANT Company and Albert Heijn utilize a mechanized cubic storage system that can reduce overall warehouse footprint by increasing storage capacity by up to 75%.