Shoprite beefs up supply chain armour

Shoprite has opened a new distribution centre in Gauteng taking its tally to 29 countrywide.

It adds to its already robust supply chain, which has given it a competitive advantage.

The group last week opened its 94,000m² Riverfields facility, which is “strategically” located to supply more than 500 of the group’s supermarkets in Gauteng, one of the company’s biggest markets.

The facility, located in Kempton Park, Ekurhuleni, has the capacity to handle about 220 trucks on site at any given time — with 1,700 jobs having been created.

Andrew Havinga, chief supply chain officer at the Shoprite Group, said the location of the Riverfields facility reduces transport costs and emissions through shorter delivery routes and includes real-time tracking, predictive analytics and high-efficiency sortation — meant to ensure that fresher, more affordable food reaches its customers daily.

“By optimising the distance between supplier, distribution centre and store, we’ve created the shortest and most responsive supply chain in SA,” said Havinga.

“The Riverfields distribution centre stocks more than 16,000 products — from dry goods and perishables to convenience meals — including about 700 fruit and vegetable varieties. It ensures year-round freshness and safety through rigorous testing, optimal storage and ripening facilities,” he said.

“Riverfields was designed to support high-volume trading periods like the Checkers XXL promotion. It allows us to respond efficiently to increased demand while continuing to deliver quality products and the best possible value to our customers. Importantly, it also reflects our long-term investment in infrastructure, supply chain capability and job creation.”

The Riverfields facility was developed by Equites Property Fund, the specialist owner and developer of prime logistics assets in SA and the UK.

Construction of the Riverfields distribution centre was completed on schedule and took about two years from breaking ground to being fully operational.

Equites CEO Andrea Taverna-Turisan last year told Business Day that Shoprite was reaping the rewards of having invested early and aggressively in its distribution network that gives it an advantage over its rivals.

Taverna-Turisan said Shoprite, the country’s most valuable retailer, was streets ahead of rivals in how it ran its supply chain.

“Shoprite talks to an organisation that is looking five to 10 years ahead. They are making commitments to their supply chains to ensure they continue to take market share. They are not resting on their laurels and allow competitors to win market share back,” Taverna-Turisan said.

khumalok@businesslive.co.za