ADM Londis completes €20m deal bringing Centralised Chill Distribution to Retailers

Jul 4, 2012

29th June 2012 - ADM Londis plc, the Irish grocery retail group has today announced the successful launch of its Centralised Chilled Distribution facility. As a result the Group’s network of 250 retailers across Ireland are, since early June, for the first time placing their chilled orders directly with ADM Londis through the Group’s ISIS web platform and receiving these products in a timely and efficient 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.

Londis retailers are already enjoying significant benefits from the launch, including;

·         Service levels in excess of 96% resulting in improved product availability and a significant reduction in off sales
·         Increased product shelf life leading to reduced wastage
·         The reduction of 40 supplier deliveries into one consolidated delivery
·         Cost reductions on key lines
·         Increased retail margins
·         A consistent and highly competitive offering
·         Enhanced own label range and offering
·         Significant in store efficiencies and operational savings  

Explaining the programme, Claude Tonna Barthet, Group Operations Director, ADM Londis plc said, “This first phase of the Group’s Centralised Chill project incorporates over 780 product lines, replacing forty individual supplier deliveries with one. 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. Despite the complexity of the entire solution, we are delighted to have experienced a very smooth launch with excellent feedback from our retailers." 

The emphatic success of the Group’s ISIS and iPad technology investments have been the cornerstone of this project, providing the ordering platform which is critical to the success of the centralised distribution offering.  With up-to-the minute daily sales information Londis retailers can ensure their orders feature exactly the products their customers demand and in the correct quantities, which is imperative when dealing with short shelf life product.Today’s announcement also marks a significant opportunity for a wide range of suppliers to the grocery market in Ireland. Localised and regional suppliers who previously were unable to branch out nationwide due to the barrier of high distribution costs now have access to a nationwide retail network via the Londis centralised chilled distribution facility. The Company anticipates significant interest amongst Irish food and drink companies.

Demonstrating the nationwide opportunity, amongst the suppliers already signed up in phase 1 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, Waldron Meats, a family owned pork and bacon supplier from Brideswell, Roscommon and Dublin craft bakery Tea Time Express.

Londis retailers have welcomed the initiative, commenting on the programme Londis retailer Seamus Kelly outlined the benefits it brings to his store, “Where previously I was dealing with over thirty suppliers in any given week, I now receive one delivery.  Likewise one invoice replaces thirty.  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.  Given the pressure on retail margins throughout the industry, it’s great to be a part of something which I believe will drive sales, earn a sustainable level of margin, and reduce costs in my business”.

Commenting, Stephen O’Riordan, CEO, ADM Londis said, “Today’s announcement is the culmination of a two year development project with Norbert Dentressangle and with our chilled suppliers who have provided great support to the project.  The launch has been a huge success with volumes already significantly ahead of forecast”.

Expanding O’Riordan 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.  We have worked closely with our suppliers to ensure a very competitive offering in store and already we are delivering significant savings to our retailer base with exceptionally keen pricing.  As this project evolves even further and our product range and supplier base expand, Londis retailers and consumers will reap even greater rewards. The Londis offering has now been significantly enhanced bringing the Group to a new competitive level offering increased availability, reduced costs, and increased Retailer margin.”


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