Food Lion 2007 Annual Report Download - page 23

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17
DELHAIZE GROUP’S
OPERATING
COMPANIES STRIVE
TO ACHIEVE
EXCELLENT
EXECUTION,
COST
EFFECTIVENESS
AND GROUP
SYNERGIES
Procurement
Delhaize Group realizes synergies by leveraging its
operating companies’ buying power. Procurement
synergies touch both direct product buying and
indirect goods (i.e. items not for resale). In the
U.S., our operating companies use a cost visibility
tool giving them access to each other’s contract
terms. More savings were generated when our U.S.
operating companies joined forces to negotiate
credit and debit card processing fees as well as
insurance policies.
In direct procurement, a big step was made
through the development of the common three-
tier private brand program in the U.S. In Europe, the
Group continued to generate procurement savings
through the extension of the
365
brand and the
generation of a second pan-European brand,
CARE
, focused on health and beauty products and
general merchandise. Increasingly, private label
products developed by one European operating
company are introduced in others resulting in an
active exchange of products between countries.
A range of authentic Thai products was sourced
for use across the Group as were commodity
items such as canned fruit, canned fi sh and frozen
shrimp.
Systems and Tools
Systems and processes developed by one
operating company are increasingly being adopted
accross the rest of the Group. For example, ACIS,
after being developed by Hannaford, was rolled
out at Food Lion and Delhaize Belgium and will
be implemented at Mega Image in 2008. The
Computer Assisted Ordering technology applied
by Hannaford is being piloted at Delhaize Belgium.
Delhaize Belgium is reviewing the introduction
of the U.S.-developed applications for price
management, store assortment and planograms,
Guiding Stars
and customer segmentation.
Delhaize Group increasingly works with Group-
wide IT roadmaps, e.g., for the development of
fi nance systems and data synchronization efforts.
DELHAIZE GROUP / ANNUAL REPORT 2007 21