ATLANTA -- Ahold USA here will equip all its divisions with a suite of new software applications as the latest step in standardizing technologies for all its chains.
Each division will receive software to automate financial reporting at the store level, create an electronic mail system, replace paper catalogs with on-line reference data bases and begin executive information systems reporting.
Rolling out common applications for all divisions, which reduces operating costs for the retailers, could also eventually set the stage for greater cooperation among Ahold chain executives.
"The five Ahold USA companies [will] benefit more and more from synergy in various fields, such as central purchasing, management development, logistics and distribution, management information systems, information technology and store design," said Hans Gobes, senior vice president of communications for Ahold, Zaandam, Netherlands.
Ahold USA has already made moves to streamline systems. For example, its Ahold Information Services has been consolidating at one location the data centers of all divisions. In the area of loss prevention, the divisions collectively agreed upon a common vendor for future electronic article surveillance installations.
The retailer will reportedly further its strategy by choosing a common supplier of labor-scheduling and time-and-attendance software, sources familiar with the situation said. Ahold declined comment on the matter.
Ahold now plans, however, to
roll out a package of software programs, all designed by Park City Group, Park City, Utah, that would allow each chain to automate cash management and begin EIS reporting, among other applications. The software, which was initially tested and installed by Bi-Lo, Mauldin, S.C., could be in the majority of Ahold's divisions by late summer.
Edwards Super Food Stores, Windsor Locks, Conn., and Finast, Maple Heights, Ohio, are expected to roll out the software package later this month, the sources said. Tops Friendly Markets, Buffalo, N.Y., will reportedly have its stores installed by June, with Giant Food Stores, Carlisle, Pa., slated to go on-line by September.
"By improving communications, productivity and operational consistency, Edwards expects to deliver a higher level of customer service and satisfaction than ever before," said Edwards spokeswoman Tonya Lyon in a statement. Other chains declined comment.
It is unclear whether Stop & Shop Cos., Quincy, Mass., which Ahold is set to acquire later this year, would also receive the software package, but several industry sources believed the chain may eventually be equipped.
One key benefit of the rollout will be the introduction of executive information systems technology, which will give top-level executives a daily financial and operational snapshot of their business.
The new software will enable officials to monitor several indicators daily, including profitability, labor as percentage of sales, accuracy of sales forecasts, and productivity. Executives will be able to follow daily sales on a company-, district- or store-level basis, with color graphic indicators drawing attention to results that fall below or exceed expectations.
While the EIS system now offers only division-specific reporting, Ahold could eventually use EIS reporting to enable top officials at each division to follow the performance of other Ahold USA chains, said one source who wished to remain anonymous.
Ahold chains also stand to gain productivity improvements from automated financial reporting software. Edwards, for example, hopes to streamline its cash management process through the new system.
"Edwards doesn't have a real efficient way of managing their cash," said another source familiar with the situation. "They have a lot of people at the store doing manual entries of cash information and also doing duplicate work at the corporate level."
Having store employees enter daily cash totals into a computer spreadsheet, rather than filling out manual forms and doing the calculations themselves, should reduce both employee workloads and the rate of store reporting errors.
Other new software applications include a program that will automate much of a store's paper-based forms, including employee hiring data and internal memorandums, and another that will replace company-printed manuals with an on-line reference data base.
By having on-line access to such information as Occupational Safety and Health Administration regulations and company hiring policies, "the program is going to allow Ahold to get rid of the cost structure of printing, binding and mailing out company manuals to the stores," one source said.
