ADM Londis launches centralised chill distribution facility
Londis retailers have welcomed the group's new centralised chilled distribution facility, which allows them to receive chilled products in a single delivery
Print12 July 2012
ADM Londis plc has announced the launch of its centralised chilled distribution facility. As a result the group’s network of 250 retailers across Ireland are, since early June, placing their chilled orders directly with ADM Londis through the group’s ISIS web platform and receiving these products in a single delivery, marking a major strategic shift for the group and its retailers.
Central to this programme is the completion of a €20m partnership agreement with warehousing and logistic experts Norbert Dentressangle.
Explaining the programme, Claude Tonna Barthet, group operations director, ADM Londis plc, said that the first phase of the project incorporates over 780 product lines, replacing 40 individual supplier deliveries with one. He said: “The entire operation is reliant on a very fluid process from placement of orders by retailers, to suppliers delivering into our chilled warehouse in Swords, concluding with products being picked, dispatched and delivered to our retailers all within a three day timeframe.”
This announcement presents an opportunity for regional suppliers who previously were unable to branch out nationwide due to high distribution costs, to have access to a nationwide retail network.
Amongst the suppliers already signed up in phase one are O’Brien Fine Foods based in Offaly which includes Brady Ham and Rudd Fine Foods brands, Nestbox, a supplier of commercial and free range eggs from Monaghan, William Carr Seafood from Killala, Co. Mayo and Dublin craft bakery Tea Time Express.
Londis retailers have welcomed the initiative. According to Londis retailer Seamus Kelly there are significant benefits for his store: “Where previously I was dealing with over 30 suppliers in any given week, I now receive one delivery. Likewise one invoice replaces 30. My consumers have commented on the wider range I now have access to and I’m delighted with the value I can offer with excellent pricing and promotional activity.”
Stephen O’Riordan, CEO, ADM Londis, said that the announcement was the culmination of a two year development project with Norbert Dentressangle and the company’s chilled suppliers. “The launch has been a huge success with volumes already significantly ahead of forecast,” he said.
“Up to now, some stores have been at the mercy of a fractured chilled supply chain, hampering supply of leading brands. Our centralised chilled solution addresses these concerns for stores and in many instances Londis consumers now enjoy greater choice and availability with popular regional brands enjoying nationwide distribution.”
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