ADM Londis, the Irish grocery retail group, has signed a £16 million (20 million euro) contract with Norbert Dentressangle for centralised distribution of chilled goods to its network of 250 stores throughout Ireland.
The four year deal will see over 15 million cases of products delivered through two warehouse locations each year.
In addition to the existing ambient facility at the Londis Group Support Office in Johnstown, Kildare, Norbert has opened a centralised chill facility at Swords in North County Dublin, for the contract.
Stephen O’Riordan, chief executive at ADM Londis said, “This agreement marks one of the biggest strategic initiatives in the Group’s history.
“The launch of our centralised chilled offering will deliver real benefits to Londis retailers in terms of heightened efficiencies, consistent supply, a finely tuned consumer offering and higher sales and margin. This investment will enhance the sustainability at a group and store level in these challenging times for the retail market.”
Claude Tonna Barthet, group operations director, said, “The group’s centralised chill facility incorporates over 780 product SKUs, removing on average 40 individual supplier deliveries per week from the shop floor.
“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 by Norbert Dentressangle to our retailers, all within a three day timeframe.