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Friday Sep 06, 2024
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John Keells Group Chairman Krishan Balendra
John Keells Group Retail Chief Financial Officer Aravinda Wanniarachchi
John Keells Group Chairman Krishan Balendra visiting the distribution centre
Keells Supermarkets recently opened its Rs. 4.6 billion, state-of-the-art centralised distribution centre (DC) in the industrial zone in Kerawalapitiya. The facility is equipped with the latest cutting-edge technology and systems on par with global retail giants. This will serve as Keells Supermarkets’ first owned and operated DC and is a testament to their commitment to product and service excellence.
The 260,000 square feet facility occupying nine acres will make it the third largest warehouse facility in the country and the largest technologically advanced distribution facility in the modern retail sector in the country. The initiative was initially set in motion five years ago after undertaking a comprehensive study on global best practices and the growing needs of the expanding supermarket chain.
The initiative was materialised consolidating Keells Supermarket’s three warehousing facilities into one centralised warehouse with operations in the dry, fresh and chilled categories. This in turn now provides all our suppliers the ability to just deliver to one location cutting down on logistical time and costs and benefits particularly the smaller suppliers. The facility is equipped to handle over 100,000 kg of fresh produce daily, and the temperature-controlled space will ensure the cold chain is not compromised. This is vital to ensure the freshness is retained from the farm gate to store providing customers freshest of produce as well as an assurance of better product availability overall.
The roof space spanning 200,000 square feet would be set up with solar panels that will have an installed capacity of approximately 800 KW. With this, the total solar power installed capacity of the chain would increase to approximately 12 MWs, making Keells Supermarket chain one of the leading brands in Sri Lanka generating renewable energy.
John Keells Group Chairman Krishan Balendra said: “The state-of-the-art Distribution Centre is a significant step towards achieving our core purpose at Keells, of ‘improving the quality of life for the nation.’ As a responsible corporate citizen that prioritises national interest, we believe that this is also a move towards advancing the nation’s food security ambitions led by a private sector entity.
Further, this cutting-edge facility which has embedded the highest global standards of technology will support our outlet expansions, catering to a wider consumer base across the country and providing growth opportunities for the stakeholders in our value chain. Employing over 500 team members, this facility will allow our supermarket business to provide good quality products at the right time resulting in the best offering for consumers at the stores”.
The investment of this magnitude during a challenging period is not only a testament to the brand’s resilience and future growth potential but will also positively impact the overall economy as it would facilitate many stakeholders to grow their business.
In terms of technology, Keells has introduced for the first time in Sri Lanka the leading warehouse management system in the world i.e. SAP EWM (Extended Warehouse Management System). This system is run on Microsoft azure cloud which is also the latest and leading cloud-based solution in the world. Furthermore, all processes in the facility are fully automated using handheld devices making it one of the technologically advanced facilities in the country.
The tray wash plant is a key feature as the first and largest automated tray wash machine in Sri Lanka. As fresh produce is transported in crates to Keells outlets daily, the plant assures these crates are cleaned without any physical human intervention and hence, ensuring the highest hygiene levels of fresh produce at Keells outlets across the country, whilst also maintaining the standards of freshness and top quality of the fresh produce. Automated re-packing machines will ensure that stores will get the required quantity of stocks for a particular item rather than standard quantities being delivered to stores which will benefit small scale suppliers.
Business expansion and job creation results in overall growth of the economy, and this facility stands to become a key employment generator in the area. The facility employs 500+ individuals within the first year of operations while the employment generation is set to increase in line with Keells’ expansion geographically and based on consumer demand.
Furthermore, this facility provides the employees the opportunity to work and get trained in a technologically advanced environment. In a bid to increase female labour participation in this male-dominated industry, Keells will be taking several steps to create an optimal working environment for females, backed by a special training program. The facility also has best in class health and safety standards ensuring a secure workplace for all team members.
The state-of -the-art distribution centre will enable Keells to create efficiencies across its entire supply chain from farmers, manufacturers and distributors, small and large, and no doubt raise the industry standards while serving as a model for modern trade retailers. In particular, given the current environment where global and local supply chains are faced with disruptions affecting product prices, investments such as this, will prove to reinforce and support the economy and support Sri Lankan consumers.
