Operation management

Exercise 5: Albert Heijn customers driving force behind logistics chain at the till For supermarket chain Albert Heijn consumers are the directors of the entire logistics chain. By means of a simple till registration the distribution chain is activated with what is called a store replenishment system. This advanced working method is the result of a track that started ten years ago with the Today for Tomorrow project. Early this month the AGF Journal - Men of the Year were given insight into Albert Heijn logistics during their visit to the regional distribution centre in Pijnacker. By Roger Abbenhuijs **Albert Heijn's mission is making everyday things affordable and special things accessible." This is how Bram Smits, operational manager of perishables started out in Pijnacker. This mission has to be realised in a market that is rapidly changing Consumer behaviour is whimsical and therefore, their range of products is changing fast. Just look at the different formats for example, that we have to deal with: various types of AH outlets, Albert.nl, convenience stores, shops that are open every Sunday, and so on. In all cases we need to meet the demand quickly." According to Smits, this requires a good supply chain". Its basis is the two national distribution centres - Nieuwegein and Geldermalsen - and four regional distribution centres. The 720 AH outlets in the Netherlands are supplied by the regional DCs. The items in the two national DCs are supplied to the regional DCs and distributed to the shops via crossdocking. People work at the DCs seven days a week. In total, 10 million packages are transported per week with a lead time (the time between ordering and supplying in the shop) between 9 and 18 hours