Jumbo invests in online supply chain

Date : 09 January 2017

In its 2016 results, Netherlands-based Jumbo announced plans to further invest in its supply chain, focusing on improving its online capacity.

Total sales for Jumbo rose 7% to €6.678 bn (or 9% stripping out the beneficial effects of a 53rd week in 2015). The retailer said organic growth of 4%, versus its estimate of industry wide growth of 2.5%, meant it gained share and underpinned its sales performance during the year.

Looking ahead to 2017

Following on from the results, Jumbo’s chief executive, Frits van Eerd, said: “ The figures for 2016 show that we are well on track. We want to grow further and with that goal in mind we have been making over the past year aimed at even more agile and more customer-oriented organisation of the Jumbo company”

50,000 orders a week

A key element in 2017’s growth strategy will be to grow online. Jumbo has said it wants to double the number of stores that offer home delivery during the year, from the ‘more than 100 locations’ that offer the service at the end of 2016. The delivery option will support the expansion of the retailer’s pick-up point offer, which Jumbo said would be extended to its 300th site in January. Jumbo's CFO, Ton Van Veen pointed to the opportunity provided by B2B sales, which the retailer had not had the opportunity to fully exploit due to insufficient capacity at its distribution centre. To support online growth in the medium to long term, the company said that it had expanded the capacity of its ecommerce-focused fulfilment centre to meet the demand of 50,000 orders per week, up from 20,000 previously.

Underpinning efficiency goals

To support the chain’s expansion and underpin its efficiency, Jumbo has said that towards the end of 2017 it would begin the construction of a new 43,000 sq. m distribution centre in Nieuwegein. The nationwide, automated distribution centre, which is set to be completed in 2020, will be focused on medium and slow moving items.

Building a collaborative network

Discover how Jumbo is working with SCA Hygiene and other companies to operating a collaborative distribution project, which is creating a more sustainable and responsive supply chain from manufacturer to consumer in our case study.