Food Logistics

NOV-DEC 2012

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A D V E R T O R I A L MANHATTAN AND GIANT EAGLE CO-DEVELOP ADVANCED GROCERY-SPECIFIC CAPABILITIES The implementation strategy was to go live with Warehouse Management and Labor Management at the most complex facilities ���rst, then to roll out the solutions to the other facilities. A dedicated Giant Eagle and Manhattan team co-developed a number of advanced grocery-speci���c capabilities, including enhanced code dating, advanced directed putaway options, real-time tasking and put-to-store functionality. The solutions��� real-time capabilities enable replenishment priority bumping, which ensures product is at the pick slot at the right time, reducing skipped picks or order shorts and eliminating the need for follow-up chases. Labor Management was a necessary component of the go-live for every facility given that some labor standards were already in place. Additionally, through the integration provided by the Manhattan solution, Giant Eagle can more effectively utilize all the capabilities of its Vocollect Voice system. Today, Giant Eagle uses the Manhattan solutions to run all operations in its six distribution centers, including RF receiving, directed putaway, directed replenishment using the priority bumping capability, voice selection, RF loading, put-to-store, trading partner management, labor management and advanced reporting. health and beauty care distribution center.��� Other facilities have seen a 3-5% increase in productivity. Using the supplier enablement capability of Extended Enterprise Management, Giant Eagle receives data electronically for each LPN/pallet for automated code/date tracking, lot tracking and tracking for country of origin. In addition to enhancing overall tracking, these capabilities have streamlined receiving and improved the recall process. ���With real-time capability provided by the Manhattan solutions, we���re able to capture and analyze the time required for each step of the distribution process. Tese improvements will enable us to increase throughput and ultimately reduce our inventory investment and space requirements.��� James Hilzendeger, Director Giant Eagle INBOUND AND OUTBOUND ACCURACY EXCEEDS 99.9%; LABOR PRODUCTIVITY RISES 8-10% Giant Eagle plans to keep reducing time to replenish store shelves, time from order placement to delivery to the distribution center, and time from the vendor to the distribution center. Hilzendeger said, ���With real-time capability provided by the Manhattan solutions, we���re able to capture and analyze the time required for each step of the distribution process. These improvements will enable us to increase throughput and ultimately reduce our inventory investment and space requirements.��� Since implementing the solutions, Giant Eagle has improved accuracy in inbound and outbound receiving. ���In the past, items were often mislabeled. Now we are 99.9% correct on LPNs and receive the right items in our warehouses,��� said Hilzendeger. In addition, the company has reduced the number of mis-shipped totes to zero. Totes transport a number of small products such as health and beauty items to Giant Eagle���s stores. ���The grocery business across the U.S. is either ���at or experiencing single-digit growth. We���re growing at a much faster rate than the industry overall and wanted to support our growth without adding brick and mortar. The functionality provided in the Manhattan solutions gives us the capabilities and ef���ciency we need while taking costs out of our supply chain.��� Giant Eagle has doubled the number of direct labor hours on a labor standard, resulting in signi���cant gains in productivity. Hilzendeger explained, ���We now have the majority of direct labor hours used on a labor standard, which has improved productivity eight to 10% in our www.manh.com 1.800.661.4972 www.foodlogistics.com FOOD LOGISTICS ��� NOVEMBER/DECEMBER 2012 49

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