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ADM Londis signs €20m deal with Norbert Dentressangle to deliver centralised chill distribution to retailers
ADM Londis, the Irish grocery retail group owned by retailers for retailers, has signed a €20m contract with Norbert Dentressangle as part of an exciting new programme to deliver centralised chilled distribution of products to its network of 250 stores throughout Ireland.
Founded in 1954, ADM Londis plc services independently owned retail grocery stores throughout Ireland. Operating the Londis franchise of retail stores, the Group employs over 7,000 people in retail, distribution and support services.
The four year deal will see over 15 million cases of products per annum delivered through two warehouse locations; the existing ambient facility at Londis Group Support Office in Johnstown in Kildare and the new centralised chill facility at Swords in North County Dublin, opened by Norbert Dentressangle as part of the new agreement. Products will be distributed nationwide on a fleet of 50 trucks during the contract period. Across the two sites, Norbert Dentressangle employs 60 people.
Explaining the programme, Claude Tonna Barthet, Group Operations Director, ADM Londis plc 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. Despite the complexity of the entire solution, we are delighted to have experienced a very smooth launch with some excellent feedback from our retailers. Our focus operationally now moves to working closely with our logistics partners, Norbert Dentressangle, our suppliers and our retailers to fine tune the entire process”.
As a result of this partnership Londis retailers will, for the first time, be able to place their chilled orders directly with ADM Londis Group Support office and receive these products in a timely and efficient single delivery.
Commenting, Stephen O’Riordan, CEO ADM Londis said, “We are delighted to announce our partnership with Norbert Dentressangle; 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.”
Commenting on behalf of Norbert Dentressangle, Mark Boulton, Business Development Director for Norbert Dentressangle Logistics Ireland Ltd said “We are delighted to have worked so closely with ADM Londis over the past number of years, both on enhancing our facilities in the Group’s ambient warehouse and more recently, bringing Londis’ vision of a centralised chill facility to fruition”.
ADM Londis’ new agreement with Norbert Dentressangle builds on five years of logistics partnership between the two companies, involving a €2m warehouse investment in Johnstown which increased warehouse efficiency, enabling a 30% reduction in cost and resulted in a considerable volume increase as Londis passed on this cost saving to retailers in the form of reduced prices.