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DELHAIZE GROUP ANNUAL REPORT '11 21
Excel 2008 - 2010 was about driving sales and
increasing efficiencies. At the end of the cycle,
important improvements had been made at the
level of logistics and procurement. Target 2015
found its seeds in the Excel Plan, focusing fur
ther on realizing gains from logistics as well as
increasing effiencies at the store level.
Logistics are a historical strength of Delhaize
Belgium and a key element in the success of the
organization. Our state-of-the-art distribution
center for fresh products continues to provide
significant savings as a result of higher produc
tivity; it increases the freshness of the products
and facilitates the ordering process for the dif
ferent store types. For example, each store
delivery is now assembled or sequenced at our
distribution center for fresh products based on
the individual store's planogram. When a store
delivery is made, the unloading and shelving
process is significantly more efficient and allows
our associates to be more productive in other
areas of the store including being able to focus
more on the customer.
In 2011, Delhaize Belgium announced the addi
tion of two new distribution centers which are
expected to be fully operational by 2015. "Logis
tics are key to the activities of Delhaize Belgium
and will continue to enable our growth and inno
vation throughout our store network," said Dirk
Van den Berghe, newly appointed Chief Execu
tive Officer, Delhaize Belgium. "These invest
ments are critical as we continue to search for
additional areas in which we can realize higher
"The growth of our
company is only pos
sible through working
more efficiently. Every
initiative that can
render our activities
more efficient will give
us the opportunity
to better serve our
customers."
Dirk Van den Berghe,
newly appointed
Chief Executive Officer,
Delhaize Belgium
SELF-SCANNING AT RED MARKET
Red Market, our soft discount format in
Belgium is 100% self-scanning. Not only do our
customers appreciate the ability to get in and out
of the store quickly, the increased store efficien
cies are a real benefit. Today, the majority of our
company owned stores have also possibilities of
self-scanning or self-checkout.
efficiencies while at the same time improving
our customers' shopping experience."
Sometimes the best ideas are relatively simple.
For example, in 2011 our logistics department
intensified backhauling to avoid that trucks
come back empty to the distribution centers
after store deliveries. After making their deliv
eries and before heading back to our distribu
tion facility, Delhaize trucks pick up orders from
suppliers thereby reducing the costs associated
with deliveries from suppliers. In 2011, backhaul-
ing combined with other initiatives allowed us
to drive 5 million fewer kilometers than in 2009.
Simple. Efficient. Profitable. And environmentally
friendly.
MEGA IMAGE INCREASE EFFICIENCY AND PREPARES
FOR GROWTH WITH NEW DISTRIBUTION CENTER
square meters
new Mega Image
distribution center
In 2011 Mega Image opened a new distribution center in the south
east of Bucharest. With a surface of approximately 40 000 square
meters, it is one of the biggest projects of the company. By giving suppli
ers an outstanding quality of service, by achieving a higher efficiency to
serve the stores and by reinforcing the food safety and quality standards
of the fresh products to the customers the new logistics center will improve
the supply chain of the company.
