Jonathan PellworthChief Operating Officer

Jonathan Pellworth · Chief Operating Officer · United States

From the routing desk to the cooperative's operations

Chief operating officer

Hollisford Grocers Cooperative

Sector
Retailer-owned grocery wholesale and distribution
Ownership
Cooperative owned by 214 member retail companies
Company scale
US$2.14 billion net sales, fiscal year ended June 2026
Employees
About 2,480
Geography
Kent, Washington headquarters; distribution centres in Kent and Troutdale, Oregon; stores supplied in five states
Reporting to
President and chief executive; presents to the board and its audit and operations committees
Team
2,140 people through six direct reports
Financial scope
US$214 million operating expense budget and a US$38 million annual capital plan across distribution, transport, cooperative-operated stores and food safety

Mandate

Bring distribution, transport and store operations under one accountable executive as member expectations and labour costs rose.

Outcomes

  • Freezer recordable injuries reduced from 19 in fiscal 2022 to 8 in fiscal 2024
  • Lot-code capture for chilled categories raised from 61 to 97 per cent
  • Early delivery window share reduced from 64 to 47 per cent, with 14 tractors retired unreplaced
  • Driver overtime reduced 18 per cent in the first year of window-based fees

Decisions in context

Our chief executive created this role when she concluded that distribution, transport and our own stores were each making promises to members that no single executive was weighing together. I lead six direct reports and attend the board's audit and operations committees to present on safety, food safety and capital spending. Much of the work concerns sequence. A member-services commitment becomes a delivery window, which becomes a driver's start time and a selector's shift length, and I try to see that chain before the promise is made. The three cases on this site come from this appointment, and each involved a decision that members, colleagues or a supplier disputed. I do not decide whether product is safe to ship. That authority sits with our director of food safety and quality, and I have kept it there through every incident since 2021.

Reason for the move

Current appointment, which I intend to keep while serving on one outside board.

Senior vice-president, retail operations and member store services

Hollisford Grocers Cooperative

Sector
Grocery wholesale cooperative and cooperative-operated retail
Ownership
Member-owned cooperative
Company scale
About US$1.86 billion net sales in fiscal 2021
Employees
About 2,350 at period end
Geography
Supplying five states; stores operated in Oregon
Reporting to
President and chief executive
Team
About 690 people, most of them in cooperative-operated stores
Financial scope
Profit and loss for the cooperative-operated stores, about US$148 million of annual sales by 2021, plus the member services budget

Mandate

Run stores taken over from retiring members until buyers were found, and improve the services sold to member stores.

Outcomes

  • Sold two stores to new independent owners while the operated portfolio grew from six stores to eleven
  • Moved schedule posting to three weeks ahead and ended on-call shifts
  • Kept every operated store open through 2020 with daily staffing reviews

Decisions in context

Running stores changed my view of every wholesale decision I had made. A late truck became a produce clerk waiting with nothing to do and then working past her scheduled finish. A short shipment became an empty shelf that a customer raised with a store manager who could not fix it. The stores came to us from members who retired without a buyer, and our purpose was to keep each town supplied until an independent owner could take over. Oregon's predictive scheduling law applied to us, and I chose to post schedules further ahead than it required. Through much of 2020 I reviewed staffing in every store each morning. I also oversaw the services we sell to members, from shelf planning to accounting support, and saw how differently a two-store owner and a twenty-store group judge the same service.

Reason for the move

Appointed chief operating officer when the chief executive combined distribution, transport and stores under one role.

Vice-president, distribution

Hollisford Grocers Cooperative

Sector
Grocery wholesale distribution
Ownership
Member-owned cooperative
Company scale
About US$1.62 billion net sales in fiscal 2017
Employees
About 2,100 at period end
Geography
Distribution centres in Kent, Washington and Troutdale, Oregon
Reporting to
Executive vice-president, supply chain
Team
About 1,150 warehouse colleagues and supervisors
Financial scope
Distribution operating budget of about US$96 million and a US$41 million perishables expansion

Mandate

Run both distribution centres and expand perishables capacity at Troutdale without interrupting member supply.

Outcomes

  • Completed the 2016 Troutdale perishables expansion within its US$41 million budget
  • Raised ambient order accuracy from 99.2 to 99.6 per cent
  • Opened the Kent reclamation area for returned unsaleables
  • Added elected selector representatives to the distribution safety committee

Decisions in context

This was my first responsibility for warehouse work at scale, and it returned me to the kind of freezer I had worked in as a student, now from the other side of the office door. Both distribution centres were running near capacity, and the perishables building at Troutdale could not hold the produce and dairy volume members were ordering. I led the expansion, which added cold rooms and dock positions while the building kept shipping every night. I also opened a reclamation area at Kent so that returned unsaleables were sorted for donation, supplier credit or disposal instead of accumulating in a corner. Supervisors had run the safety committee alone; I added selectors elected by their colleagues. Looking back, I did not act on freezer hours in this period, although the injury trend behind the 2022 cap was already visible.

Reason for the move

Asked to lead cooperative-operated stores and member services as the number of stores taken over from retiring members grew.

Director of transportation

Hollisford Grocers Cooperative

Sector
Grocery wholesale distribution and transport
Ownership
Member-owned cooperative
Company scale
About US$1.38 billion net sales in fiscal 2013
Employees
About 1,900 at period end
Geography
Routes across Washington, Oregon, Idaho and Montana; barge lane to Alaska
Reporting to
Vice-president, distribution
Team
About 260 drivers, planners and fleet technicians
Financial scope
Fleet operating budget of about US$48 million and the tractor and trailer replacement plan

Mandate

Reduce empty miles and stabilise service to members in Alaska.

Outcomes

  • Reduced empty return miles by 14 per cent by collecting supplier freight on return legs
  • Aligned Alaska order days with barge sailings, cutting missed sailings from 22 to 5 a year
  • Introduced trailer temperature recording on every refrigerated lane

Decisions in context

I joined from a dairy company, and the first lesson was that our customers were also our owners. A route change that would have been a routine notice at Fenwyck became a conversation with a member who might sit on the board. I rode to member stores for my first three months, including a week in Alaska, where the barge sailing from Tacoma decided what we could promise stores in Anchorage, Soldotna and Homer. Missed sailings had been treated as bad luck. Most came from order cut-offs that did not match the sailing schedule, so I changed the cut-offs and agreed fixed order days with Alaska members. I also began collecting supplier freight on return legs and recording trailer temperatures on every refrigerated lane, a practice that later made federal food transport requirements straightforward to meet.

Reason for the move

Promoted to lead both distribution centres.

Branch operations manager, later distribution manager

Fenwyck Creamery

Sector
Dairy processing and direct-store delivery
Ownership
Family-owned private company
Company scale
About US$140 million annual sales at period end
Employees
About 520 at period end
Geography
Plant near Salem, Oregon; routes across western Oregon
Reporting to
Vice-president, sales and distribution
Team
64 route drivers and 18 loaders and dispatchers
Financial scope
Branch delivery budget of about US$11 million, including returns and store credits

Mandate

Reduce returns of out-of-date product and stabilise route costs.

Outcomes

  • Reduced returns from 6.8 to 3.9 per cent of delivered value over two years
  • Moved driver commission from delivered volume to net sales after returns
  • Rebuilt 64 routes around the hours stores could receive

Decisions in context

Dairy taught me that returns are usually an ordering problem that appears later. Fenwyck drivers stocked our products on store shelves and took back anything that had reached its code date, issuing the store a credit. When I compared returns by route, the highest were rarely in the weakest stores. They were on routes where drivers set order quantities, because commission was paid on delivered volume rather than on what customers bought. Changing the commission took two years, a long negotiation with the drivers' union and a transition period in which no driver's pay could fall. Returns fell from 6.8 to 3.9 per cent of delivered value. I also rebuilt routes around the hours stores could actually receive product, my first experience of a delivery window as a cost that somebody else had chosen without seeing it.

Reason for the move

Joined a larger wholesale operation with long-haul transport and barge lanes.

Transport planner, later night distribution supervisor

Garroway Foodservice

Sector
Foodservice distribution to restaurants, schools and hospitals
Ownership
Privately held company
Company scale
About US$310 million annual sales at period end
Employees
About 700 at period end
Geography
Spokane, Washington; eastern Washington and northern Idaho
Reporting to
Transportation manager
Team
No direct reports as planner; 40 loaders and drivers as supervisor
Financial scope
Daily route plans, then night-shift labour and overtime

Mandate

Plan daily delivery routes and later run the night loading and dispatch shift.

Outcomes

  • Moved planning for 85 routes from paper maps to routing software
  • Agreed later delivery times with 120 restaurant customers whose windows reflected habit rather than need
  • Cut night-shift overtime by about a fifth by spreading early departures

Decisions in context

I arrived as a planner with an engineering degree and the belief that routing was a mathematical problem. It was partly that. The rest was learning why customers asked for the delivery hours they did. A hospital kitchen needed product before breakfast service. Many restaurants asked for seven o'clock simply because a previous supplier had come then. As night distribution supervisor I lived with the results: loaders working against the clock, drivers leaving in the dark and overtime that nobody had decided to spend. I spent many afternoons telephoning restaurant managers to ask whether a later window would work, and many agreed. That patient work reduced overtime more than any software change did. Those afternoon calls are also the origin of the delivery-window fees I brought to the Hollisford board more than two decades later.

Reason for the move

Moved to direct-store delivery to learn store-level operations.

What I am looking for next

I am looking for a first independent board seat at a US company whose risks include physical work: a food or consumer-goods manufacturer, a regional retailer or a distribution business. Private equity-backed and smaller listed companies both interest me. I would expect to join an audit committee or a committee overseeing safety and operational risk before considering any chair role. I am not seeking a change of executive role. I intend to remain chief operating officer at Hollisford, and any appointment would need our chief executive's consent under the cooperative's policy on outside directorships. Twenty-four days a year is a realistic allowance alongside that role and my food bank directorship. I would avoid companies that supply our cooperative or compete with our members for the same shoppers, and I expect that test to rule out some otherwise attractive seats. What I hope to add is the habit of asking which people and which hours carry a commitment before the board approves it.