Food Lion 2008 Annual Report Download - page 23
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Supply Chain and Common IT
Delhaize Group continues to invest
significantly in supply chain and IT systems
because they are vital to our business.
In 2008, the decision was made to integrate
the supply chain organizations of all U.S.
operating companies into one single supply
chain master network. Integrating these
networks will provide us with greater visibility
on stock levels, enable us to obtain better
supplier conditions, reduce transportation
costs and improve the quality and freshness
of our products. The implementation, taking
place over several years, will start in 2009.
In 2008, Delhaize Belgium equipped its
trucks with on-board computers to enable
full visibility of movements of goods and truck
load ratings. As a result, backhauling can
be organized more easily : goods can be
loaded at the supplier in case the driver is in
the neighbourhood with an empty truck.
Also in Belgium, a brand new distribution
center for fresh products will be opened in
2009. The warehouse will feature a state-
of-the-art automated preparation system
increasing productivity in the distribution
center, optimizing truck loads through higher
filling rates for individual crates, allowing for
easier shelving in the stores, reducing the
number of crates to be handled and ultimately
improving the service levels to the stores.
Alfa-Beta acquired a 115 000 m
2
plot of
land outside Athens and has started the
construction of a new modern distribution
center for fresh products. In addition, the
new distribution center acquired with the
Plus Hellas stores in the north of Greece will
provide the necessary space for our rapidly
growing operations in that region.
In 2008, one of the Romanian distribution
centers was expanded by 1 200 m². This
additional area supports the Company’s
recent network growth. Further extension of
this distribution center is planned for 2009,
which will double its floor space.
The voice picking technology implemented
in the U.S. and in Belgium showed positive
results. Therefore, it was introduced at Mega
Image and will be implemented at Alfa-Beta
in 2009.
Mega Image implemented a new direct
store delivery receiving system in all stores
that improved both the integrity of inventory
management and the efficiency of the financial
payment processes.
Super Indo introduced a new ordering system
providing added efficiency in the distribution
processes. In addition, our Indonesian
operations extended the
radio frequency
(RF) usage in the picking terminals, reducing
picking errors and showing real-time stock
positions.
Data Analysis
During 2008, price optimization systems
continued to deliver great results. This
software is now used at Food Lion, Hannaford
and Sweetbay.
Food Lion, Hannaford and Sweetbay are all
using software systems to plan assortments
and store planograms. Delhaize Belgium
continues to test this software as well and
may implement it in 2009. These tools, when
combined with price optimization software
and the detailed data from customer
segmentation work, are a powerful way
to connect with the local customer.
ACIS
,
our inventory management system, is now
implemented in all our U.S. operations and at
Delhaize Belgium. At Delhaize Belgium,
ACIS
has provided the visibility needed to define
store action plans and successfully reduced
store inventory losses in 2008.
CAO
(Computer Assisted Ordering) uses
data captured by
ACIS
to determine optimal
reordering quantities and timing. After the
successful rollout in previous years of
CAO
at Hannaford in center store categories,
CAO
pilots were used effectively in some
fresh departments in 2008.
CAO
was also
introduced at Sweetbay in 2008 and yielded
good results. Delhaize Belgium is currently
running
CAO
pilots as well.
Our operating companies are upgrading their
financial systems to improve the reliability and
granularity of management information. The
operations of our two acquisitions in Greece
and Romania were efficiently integrated into
the existing enterprise resource planning
environment of Alfa-Beta and Mega Image.
The first steps were taken to upgrade the
financial systems at Delhaize Belgium.
During the year, we invested significantly in
the security of transactional data systems
in all operating companies in response to
an illegal data intrusion into Hannaford’s
computer network that resulted in the theft
of certain customer credit and debit card
number information at Hannaford and
Sweetbay.
Delhaize Group Our Strategy
Our Activities in 2008
Corporate Governance
Risk Factors
Financial Statements
Shareholder Information
at a Glance
> Generate Profitable
Revenue Growth
> Pursue Best-in-Class
Execution
> Operate as a Responsible
Corporate Citizen