PICK n Pay opened its second of four planned distribution centres yesterday, this time in Philippi, Cape Town following the opening of its Longmeadow distribution centre in Johannesburg in 2010.
Pick n Pay divisional director of supply chain Cobus Barnard said the new distribution centre would allow the company to operate more cost-effectively.
"Benefits from centralised distribution include better on-shelf availability while at the same time holding lower overall inventory levels in stores. This means less congestion at our stores’ receiving centres and importantly lower transport costs in our supply chain," Mr Barnard said.
"The fast-moving consumer goods section of the centre will be fully operational by October, by which time we will be distributing 400000 cases a week. Currently, Longmeadow Groceries moves 1-million cases a week out to our stores," Pick n Pay Deputy CEO Richard van Rensburg said.
Pick n Pay has made significant investment to the tune of R2bn in upgrading and building distribution centres which should be completed by 2017.
The new 36133m² distribution centre at Phillipi will employ about 342 staff and has a total area of 50445m² allowing for expansion for slow moving lines.
It will distribute groceries while the old warehouse will handle fresh foods and perishables, the company said.
Twelve green initiatives have been implemented within the grocery division, focusing on energy and water management, refrigeration, and the physical materials used for the building of the distribution centres. Some of the initiatives which were successfully implemented at Longmeadow and will now be used at Philippi, include daylight harvesting which will cut daytime electrical lighting by 50%, the company said.