2009 Innovator: Giant Eagle #9

Giant Eagle Takes The Pain Out Of Labor

Giant Eagle Inc. had multiple, outdated systems which created barriers to greater efficiency and cost reduction.

The Pittsburgh, PA-based supermarket retailer services 221 supermarkets and 140 fuel and convenience stores throughout western Pennsylvania, Ohio, north central West Virginia and Maryland.

Giant Eagle operates five distribution centers located throughout its service area—ranging from 90,000 to 800,000 square feet —and was using outdated, batch technology with multiple systems in several locations to run its supply chain operations.

The company wanted a single vendor that could meet all of its supply chain requirements and accommodate advanced functionality, including flow-through order processing, put-to-store picking and expanded RF and voice functions.

Giant Eagle uses the Toyota Production System methodology, which considers customers, quality and people in an effort to increase overall operational efficiencies.

The company sought a supply chain company that had a solid understanding of the industry and could grow with them and chose Manhattan Associates Inc., Atlanta.

A dedicated Giant Eagle and Manhattan Associates team co-developed a number of advanced grocery-specific 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.

Manhattan Associates’ warehouse and labor management solutions provide new capabilities and efficiencies, reducing supply chain costs for Giant Eagle. Giant Eagle uses the Manhattan Associates’ solutions to run all operations in its five 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.

The inbound/outbound accuracy exceeds 99.9 percent. In the past, items were often mislabeled and now they are near perfect on LPNs and receive the right items in their warehouses.

Also, Giant Eagle reduced the number of mis-shipped small products to zero. Labor productivity improved 8 percent to 10 percent in Giant Eagle’s health and beauty DC and 3 percent to 5 percent in other DCs.

Giant Eagle has doubled the number of direct labor hours on a labor standard, which results in significant gains in productivity.

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