Progressive Grocer - June/July 2009 - (Page 118)

“If the retail technology we are selecting tends to have major retail operations ramifications, we will also incorporate input from our own internal operations people.” —Mike Brown, Unified Grocers where Unified is going with retail technology and Unified, for example, uses a selection process our vendor partners’ services for installations.” will want to collaborate with us on that compati- that incorporates much of what it learns from its In some cases — just over 19 percent, bility.” retailers in requirements documents and RFPs. according to the PG study — the wholesaler Unified has a Professional Services team to It also includes retailers on its selection groups acts as independent software vendor, selling the help retailers establish effective IT strategies to offer input and insight from a retail perspec- technology and providing turnkey services and that are tailored to their individual businesses. tive. support. To ensure that its technology solutions address “If the retail technology we are selecting Associated Wholesalers, Inc., however, acturetailers’ business needs, Unified’s IT group has tends to have major retail operations ramifica- ally is a retail technology vendor. The cooperaa Product Marketing team that analyzes the tions, like perishables management, for example, tive wholesaler — along with three other wholemarket to better understand a retailer’s require- then we will also incorporate input from our salers — co-owns the Retailer Owned Research ments, and then packages relevant programs own internal retail operations people into the Co. (RORC). Based in Fort Worth, Texas, together, negotiates and manages programs with selection process,” says Unified’s Brown. “For RORC provides complete IT solutions for its vendors, and provides ongoing support. many systems, we are the Professional Services retailer-members, from consulting to sales, Larry Foster, SVP, e-commerce, for Edina, team that coordinates the installation, sees it installation, maintenance and support. Minn.-based wholesaler Nash “Due to us having our own Finch, sees the retailers he serves front end and back office system, place a greater focus on ROI with we provide a turnkey installation Working With Wholesalers on Technology Solutions their technology investments in process,” says Glenn D. Kriczky, Nine out of every 10 respondents report working with their wholesalers to find today’s economy, and they look VP of information systems. technology solutions, though the extent of this partnership varies. to Nash Finch to develop strate“Within our retail technology Work With Wholesaler on Tech Solutions (net) 89.6% gies accordingly. department, we have a staff that “Independent retailers don’t provides installation and training Wholesaler Recommends Solutions 65.3 have much money to spend on IT, services for our new customers and Wholesaler Actively Implements Solutions 25.0 and the money they do spend must existing customers as needed.” Wholesaler Acts as Independent Software Vendor (ISV) 19.4 have an ROI for their specific busiMaintenance and support of Other Mentions 2.1 ness, not from industry averages or retail systems can be very expenDo not Work With Wholesaler on Tech Solutions 10.4 what someone may believe, but a sive and time-consuming if retailtrue payback on the money ers deal individually with technolMultiple Responses Accepted Base: 141 Respondents invested,” says Foster. “No one can ogy vendors. To streamline SOURCE: Progressive Grocer MARKET RESEARCH, 2009 afford to buy all the technology support, and make it more costthey need in one shot. We work effective, wholesalers create packhard to develop a path that will lead aged offerings in which various to the desired end result but also be flexible enough installed and performs the training, and then services can be bundled together as needed. to handle technology changes, business changes serves as the first line of support. Of course, “With many programs, we bundle hardware, this varies from product to product, and we software, communication, support and mainand new demands along the way.” Some wholesalers, such as Unified and Robeso- only do this for systems we either support or tenance into a subscription service,” says Uninia, Pa.-based Associated Wholesalers, Inc., have recommend.” fied’s Brown. “We have been doing this for Other wholesalers assist in product selec- many years. We simply pay the bills and then even developed regular in-person events and meetings, during which the retailers they serve can eval- tion, but turn to their technology partners for charge the retailer on their weekly Unified stateuate and discuss various technologies and solutions. the hands-on work. “Once we know the ment. This creates a low upfront cash constraint retailer’s needs, we work to leverage our size on the retailer and keeps things simple and and buying power to get better discounts on more standardized. This subscription strategy Selection and Installation products and services that can be passed on to has been one of our most successful strategies to When it comes to sourcing retail technol- them,” says Nash Finch’s Foster. “We do some date.” ogy, wholesalers tend to be more varied in the installation work, but are not staffed to handle A good maintenance program is especially degree to which they work with their retailers. everything. Our current strategy is to leverage critical when equipment fails. “As with any118 • Progressive Grocer • June/July 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009