SUPPLY CHAIN
Centralized Fulfillment
SpartanNash Fast-Tracks Omnichannel Effort A NE W MICRO-FULFILLMENT CENTER OFFERS SPEED AND EFFICIENCY IMPROVEMENTS. By Lynn Petrak o meet consumers’ needs as they shop in different ways, SpartanNash continues to adapt its online services and infrastructure. This summer, the Grand Rapids, Mich.-based grocery retailer and distributor expanded benefits for its Fast Lane curbside pickup and home delivery customers and opened a new mini-warehouse to expedite order fulfillment. Aligning with the four-year anniversary of the Fast Lane online shopping program, the new 55,000-square-foot micro-fulfillment center opened in late July in Caledonia, Mich., and serves Fast Lane customers in west Michigan, who pay $49 for an annual subscription. As the company’s curbside pickup and delivery business increased during the pandemic, plans for the new facility also sped along. Buildout of the existing structure began in late 2020, and the project was finished by midsummer. “Centralized fulfillment was on our radar, and COVID just accelerated that,” says Matt Van Gilder, director of e-commerce and digital marketing for SpartanNash, noting that the total cost of the micro-fulfillment center was about $5.3 million,
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including technology investments. According to President and CEO Tony Sarsam, the facility represents a wave of the future that may require continual adjusting as consumers shift their habits and preferences. “Ten years ago, people thought the model of the future was how to deliver food to consumers at home. I think it was a surprise this past year how much enthusiasm there was for click-and-collect versus delivery at home,” Sarsam tells Progressive Grocer, noting that this will be an insightful experience for shoppers as well as for the retailer. “We will learn a ton of stuff just like that. As customers figure out what makes sense for them, we will work with them and adjust our model.” The fulfillment center holds 16,000 shelf-stable, fresh, refrigerated and frozen
Efficiency is important for us, and this building will allow for greater effectiveness in fulfilling orders.” —Tony Sarsam, President and CEO, SpartanNash
