Our extensive supply chain gives us a competitive advantage that is underpinned by resilience, agility, responsibility, and partnerships that help us serve customers better. 

Operational and supply chain efficiency play a critical role in ensuring our products remain affordable and accessible, while, at the same time, reducing our environmental impact. Our continued investment in technologically enabled systems and infrastructure ensures we maintain and enhance efficiencies throughout our supply chain. 

Our supply chain has been designed to meet the demands of our expanding network - improving efficiencies, enabling business growth, minimising waste, mitigating risk, and advancing our overall centralisation levels. By expanding, adapting, and securing our supply chain, we continue to enhance its resilience and agility to serve our customers’ growing needs. 

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RIVERFIELDS DC FACT SHEET
meal 29
DISTRIBUTION CENTRES

 

* December 2024

medical 103 925
EMPLOYEES AND CONTRACTORS GET HEALTH AND SAFTY TRAINING

 

truck 35 058
HOURS OF DRIVER TRAINING

 

* FY2024

An infographic showing Shoprite Holdings supply chain process

Our focus areas

Diligently managing our supply chain includes planning, forecasting, procurement, warehousing, and distribution.

We manage efficiencies by focusing on:

  • Building a resilient supply chain
  • Improving and managing systems and processes 
  • Transparency and accountability
  • Health and Safety

Building and maintaining a resilient supply chain keeps our business operations running smoothly. We do this through:

  • Local supplier support

    • We support local suppliers wherever possible, contributing to local economies and developing small and medium suppliers (SMMEs), while also reducing our environmental impact. Our objective remains promoting local suppliers and SMMEs to help grow them into large-scale, sustainable providers.

  • Managing supply chain challenges

    • Our supply chain is underpinned by proactive engagement and strong collaboration – from suppliers to stores. Exercising a high degree of control across the chain enables us to remain agile and implement rapid adjustments when needed.

  • Diversifying our supply chain

    • The volume and variety of products we source require partnerships with a wide range of suppliers – from large multinationals to emerging SMMEs. Diversification helps us increase resilience and adaptability in a rapidly changing climate and global landscape.

 

Operating efficiently is part of our DNA. To uphold this sentiment in all supply chain operations, we aim to:

  • Maintaining network efficiency

Our extensive distribution centre (DC) network improves responsiveness and reduces transport distances between suppliers, DCs, and stores – the shortest and, most responsive supply chain in South Africa. We’ve implemented large-scale on-site power generation to ensure uninterrupted operations  – especially during electricity disruptions such as load-shedding. 

  • Improving forecasting and replenishment 

We continue to invest in AI-enabled forecasting, automation and replenishment tools enhance inventory management, improve efficiency, reduce waste on short shelf-life products, and ensure better on-shelf availability. These technologies, combined with our in-house food technology and product development expertise, support quality, fresher-for-longer product delivery to customers.

  • Growing our share in fresh and premium food

To strengthen supply chain resilience in our fresh produce operations, particularly through our fruit and vegetable procurement and distribution network (via Freshmark), we invest in local agricultural development and share our expertise with farmers across Africa, enabling them  to grow world-class fruit and vegetables.

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Beyond minimising our own impact, we work with suppliers to improve the overall social and environmental impact of our supply chain.

  • Supplier engagement on environmental and social issues

    • We continue to reduce our environmental footprint by managing all facets of our supply chain and engaging suppliers on key issues like food waste, responsible sourcing, climate action, and sustainable packaging. Our suppliers are also eager to assist our CSI programmes beneficiaries, reflecting their commitment to shared value. 

    We take active steps to reduce climate risk within our supply chain. Our Supplier Code of Conduct outlines expectations around environmental and social responsibility, and we conduct an annual Supplier Sustainability Survey to better understand and manage sustainability risks across our supplier base.

We are committed to providing a safe, healthy working environment across our facilities. Our safety management approach includes Occupational Health services, employee wellness programmes, and online learning and support resources to promote health, safety, and awareness across our workforce.

A strong safety culture remains central to our incident prevention strategy. We use a digital risk management platform to proactively assess and manage workplace safety, compliance, and occupational health, risks, enabling us to track inspections, monitor controls, centralise health and safety data, and respond to hazards in real time.

  • We’ve rolled out a behaviour-based safety programme across DCs, focused on proactive preventative and learning from past incidents.
  • Our truck driver safety programme continues to evolve with defensive driving training, regular vehicle maintenance, and digital safety tools.
  • We also maintain comprehensive safety measures for Checkers Sixty60 drivers, with integrated protocols covering drivers, assets, and system controls.