From waste to worth: the Radial-Foodello partnership
Foodello, a Finnish market leader in combating food waste, has undergone rapid growth across Western Europe. The need for an effective, sustainable and scalable fulfillment partner arose due to Foodello’s expansion, particularly in Belgium and the Netherlands, where it tripled its business in 2023.
Radial, a B2C fulfillment specialist and part of bpostgroup, supports Foodello’s fulfillment and transportation needs, enabling further growth while aligning with Foodello’s mission of sustainable development.
Foodello in 2023
main business achievements
- 13 Mkg of saved food
- 20 MEuro of revenue
- 30%YOY growth
Key challenges Foodello faced
Foodello’s core mission is to reduce food waste by selling surplus food products online at significant discounts. By 2023, Foodello had already saved over 13 million kg of food from being wasted. However, rapid growth — including a 30% year-over-year growth that brought the company to over €20 million in revenue — meant that its logistics infrastructure needed to scale efficiently. The company expanded into new regions, including Wallonia and Brussels, and sought a fulfillment partner capable of managing increasing order volumes while ensuring high service levels.
1. Scaling logistics operations to match rapid growth in new markets.
2. Ensuring a seamless, eco-friendly logistics process to align with their mission.
3. Expanding order fulfillment efficiency to match high customer expectations.
Mariska Kapelle, Foodello’s Logistics Manager
“We were positively surprised by the engineering and design of the solution proposed by Radial, and we were happy with the cultural fit that seemed to exist during the negotiations. Obviously, these two factors, combined with the price level, made us choose Radial. A nice bonus was the offer of a multi-carrier solution, which we had been hoping to offer to our customers for a while.”
Radial offered Foodello
warehouse in Groningen, the Netherlands
- 8.5 Mitems outbound annually
- 3 Kbulk pallet locations
- 1.8 KSKU pick locations
The solution: partnering with Radial
Foodello started the process of finding a new fulfillment partner in the second half of 2023. After extensive research, they chose Radial for their scalable, innovative, and sustainable fulfillment solutions. Foodello’s cooperation with Radial is built around several key elements:
1. Comprehensive services
Radial provides Foodello with a full scope of e-commerce fulfillment services, including:
- Storage
- Order picking and packing
- Returns management
- Value-added services
- End-to-end product traceability
- Transportation management
2. Storage and order capacity
Radial’s fulfillment center in Groningen can handle up to 8.5 million Foodello items outbound annually.
The warehouse offers Foodello: 3,000 bulk pallet locations and over 1,800 SKU pick locations. This allows them to expand their product range efficiently.
3. Technological innovation
Radial implemented cutting-edge technologies to help handle Foodello’s growing order volumes while maintaining operational efficiency. Some of them are:
- Transport assistance power-driven picking trolleys, the “KT4”, which utilizes a 5th wheel with an electric motor to support turning, along with a 20Ah battery pack and a multifunctional handle.
- Semi-automated case closing machine eliminating the manual process of case erecting- taping.
- Mettler integrated digital weighing platforms built into bespoke packing benches. They can weigh orders up to 60 kg.
- Gravity-fed roller, 90-degree curve, along with motorized conveyor systems.
4. Sustainable fufillment
Foodello’s mission aligns seamlessly with Radial’s sustainability goals and initiatives:
- Eco-friendly warehouse. The BREEAM certified Groningen warehouse was built to the highest sustainability standards. This eco-friendly facility operates using solar panels and autonomous mobile robots (AMRs) to optimize energy efficiency and reduce environmental impact.
- Energy efficient solution. Specilized machines that are more efficient than manual methods improve fulfillment speed and accuracy, minimizing delays, errors, and energy consumption across the supply chain.
- Zero-waste culture. Eliminating plastic, partnering with local food banks for non-sellable products along with Radial’s commitment to sustainability utilising waste separation and recycling initiatives.
- Sustainable packaging. Radial sourced a local specialist to introduce eco-friendly materials, such as recycled bubble foil, to minimize packaging waste. Semi-automated case-closing machines ensure consistent packaging and reduce material waste by using only the necessary amount of tape and packing materials.
5. Sustainable transportation
Radial carefully selected last-mile carriers that have a clear vision on zero emission deliveries. They offer PUDO services, bike couriers and electric delivery vehicles which ensures that last-mile delivery is as eco-friendly as possible.
Steven Waterhouse, National Project Manager, Radial Europe: We’ve introduced transport assistance power-driven picking trolleys and semi-automated case closing machines to streamline Foodello’s fulfillment process. These innovations not only enhance efficiency but also reduce energy consumption and minimize packaging waste. It supports our commitment to sustainable fufillment practices while meeting Foodello’s growing order volumes.
Implementation process
The implementation steps included:
- Warehouse design. Foodello worked closely with Radial’s team to ensure that the new warehouse layout and processes were designed to be scalable and efficient.
- Logistics optimization. Communication with the warehouse team was key to ensuring smooth daily operations, particularly as Foodello’s order volumes increased.
- Finalization. The project was completed by July 2024, and the move to Radial’s Groningen warehouse was finalized during a “warehouse move weekend.”
Foodello launch in Radial Groningen
Outcomes and results
Through their partnership with Radial, Foodello has achieved several important milestones:
1. Expanded capacity
With Radial’s 26,000-square-meter Groningen warehouse and its advanced technology, Foodello can efficiently manage its growing order volume across multiple markets, including the new territories in Belgium and the Netherlands.
2. Improved customer experience
The introduction of faster delivery options and improved order tracking systems (client portal) has allowed Foodello to enhance its customer experience, ensuring that products arrive fresh and on time. The tailored fulfilment solution make sure we pick exactly what the customer ordered, in the quantity that it is ordered. Additionally, the multi-carrier solution gives our customer a choice in the last-mile, and we are constantly working on improving the freight quality as well in terms of damages.
3. Sustainability alignment
Radial’s eco-friendly practices, from packaging to delivery, help Foodello stay true to its mission of reducing food waste and minimizing environmental impact.
4. Seamless growth
Thanks to the cooperation with Radial, Foodello will continue to scale operations efficiently while preparing for further expansion.
Mariska Kapelle, Foodello’s Logistics Manager:
“Radial’s team has quickly understood Foodello’s mission and unique challenges. The team is very eager to contribute to and improve their processes to improve our customer’s experience. Their innovative approach and commitment to sustainable fulfillment have enabled us to scale efficiently while delivering the best customer experience and continuing our fight against food waste.“
Foodello stock at Radial warehouse in Groningen
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