Food Lion 2001 Annual Report Download - page 19

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|17
utions
platform in order to reduce processing costs
and extend services to smaller vendors.
Through a private exchange solution, Food
Lion has facilitated two-way
communications with its vendors as well as
the flow and accessibility of information
throughout the Company. In 2002, Food
Lion’s private exchange solution will be
extended to the companies of Delhaize
Group in Europe and Asia.
Delhaize Belgium has set up a supplier
extranet, allowing suppliers to benchmark
their performances and obtain better supply
chain efficiency. An integrated purchasing
and logistics application is being rolled out
in different operating companies of
Delhaize Group.
Warehouse Management |
Delhaize Belgium has started a project
centralizing the total assortment of slow-
moving items in one dedicated distribution
center. This location will be able to deliver
lower quantities to the stores, allowing
important stock reduction. Caddy-Home’s
picking and receiving operations have
been improved by the introduction of
voice recognition equipment, enabling
paperless dispatch of warehouse
operations.
During the second quarter of 2001,
Hannaford’s Butner, North Carolina,
distribution center began to supply health
and beauty care merchandise to Food Lion.
Food Lion purchases the products while
Hannaford oversees warehouse and
transportation operations. The next phase of
the project will add general merchandise
and specialty foods.
Procurement | Delhaize Group is
one of the founding members of the
WorldWide Retail Exchange (WWRE), the
largest electronic business-to-business
market place in the world, which allows the
Group to generate significant savings.
Today, Delhaize Group participates actively
in different initiatives of the WWRE:
electronic auctions and aggregate purchases
for direct and indirect goods, catalogue
synchronization and Collaborative Planning
Forecasting and Replenishment (CPFR).
Synergies | New technology allows
business processes of the different
companies of Delhaize Group to be
progressively aligned to the best solution
components in use in Delhaize Group.
Technology also enables easy and quick
distribution of information among the
Group’s operations, thus facilitating the
exchange of knowledge and the initiation
of synergies.
Delhaize Group has implemented an
internal catalog for private label goods and
indirect goods enhancing easy and
transparent information access and
exchange. It also stimulates aggregated
buying and sourcing among all operating
companies.
A knowledge management project has been
established to facilitate the sharing of
successful practices. Its roll out at Food
Lion and Delhaize Belgium is anticipated
in 2002. Additionally, Delhaize Group has
put an intranet, called the Lion Net, at the
disposal of its staff members for
distributing information about activities of
the Group and its operating companies.
the customers, improving their convenience and customer
reduction, profitability and inter-company cooperation.
The introduction of voice recognition
improved the efficiency of Caddy Home’s
distribution center significantly.