**Canada**: Pet Valu, Canada’s leading pet supplies retailer, is undergoing a transformative supply chain overhaul aiming at modernising distribution and enhancing services. With a $100 million investment, the company plans to utilise automation technology and expand its network to meet increasing demand effectively.
Pets are integral companions for many, serving as cherished family members and sources of joy. Responding to the growing demand for pet care, Pet Valu, Canada’s leading specialty retailer in the pet supplies sector, is continuously evolving to meet customer needs. The company’s network includes over 800 stores across all provinces and a robust digital presence, supported by a team of thousands of Animal Care Experts (ACEs).
Pet Valu has a diverse product offering with over 10,000 SKUs, comprising pet consumables and accessories available through a combination of corporate and franchised outlets, direct-to-consumer sales, and a wholesale business. The complexity of its supply chain operations is managed by Nico Weidel, the Chief Supply Chain Officer, who joined the company in 2022 to overhaul its supply chain. This transformation includes consolidating nine distribution centres into three state-of-the-art, partially automated facilities.
In elaborating on the company’s history, Nico stated, “Pet Valu was established in 1976 and began franchising in the 1980s.” Thanks to organic growth and regional acquisitions, the retailer has expanded its footprint significantly. Nico mentioned that the stores are conveniently located within minutes of 75 per cent of the Canadian population and explained the launch of the company’s direct-to-consumer website in 2021, alongside the click-and-collect service.
The company’s inventory features a broad range of products, including premium and holistic brands, which necessitates a unique dual-functioning supply chain. “The consumables aspect behaves like a grocery supply chain, whereas the other half, like accessories and apparel, acts like a specialty retail distribution business,” Nico explained. He also highlighted logistical challenges caused by Canada’s vast geography, noting, “Any Canadian supply chain must maintain extremely good control on its inventory position, placing inventory ahead of actual demand due to long lead times.”
The COVID-19 pandemic created unprecedented growth for Pet Valu, resulting in the need to expand beyond their existing storage capabilities. “We were using third party overflow facilities, and the network wasn’t operating as effectively or efficiently as we’d like, so, in 2022, I joined Pet Valu to commence its supply chain transformation,” Nico said.
The transformation plan involves a significant capital investment of over $100 million from 2022 to 2025, aimed at modernising the distribution network focused on the Greater Toronto, Vancouver, and Calgary areas. As part of this overhaul, both Vancouver and Calgary are undergoing transitions to new distribution facilities, which are set to enhance service and increase supply chain capacity.
The integration of automation technology into these facilities marks a significant advancement. “One of our key investments in automation is the implementation of a piece picking solution from AutoStore in our new Greater Toronto area facility,” Nico revealed. Currently home to Canada’s largest AutoStore installation, the facility boasts over 4,000 SKUs managed by approximately 100 robots. This automation has optimised storage and increased pick productivity to an impressive 99.9 percent accuracy.
Nico also emphasised the ergonomic advantages of automation for employees, showcasing a unique approach by letting employees name the robots after their pets. “It’s a unique way to engage our people and it’s fun to essentially have 100 pets driving around the warehouse,” he said.
Looking to the future, Pet Valu plans to continue store openings, with an emphasis on community presence. “We open dozens of stores each year, and 2025 is no exception,” Nico stated, indicating that the new Calgary centre will service Alberta, Saskatchewan, Manitoba, and select parts of British Columbia when it opens in mid-2025.
As it nears the completion of its supply chain transformation, Pet Valu appears well-positioned for sustained growth in the coming years. By leveraging advanced automation and expanding its distribution capabilities, the company aims to maintain its status as Canada’s preferred pet retailer, committed to delivering desired products and expertise for pet lovers across the nation.
Source: Noah Wire Services
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