Ahold USA to Replace Mixed Bag of Legacy Systems with Enterprise-Wide Apps

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Ahold USA to Replace Mixed Bag of Legacy Systems with Enterprise-Wide Apps

LANDOVER, Md. -- Ahold USA, the U.S. operating unit of Royal Ahold that includes the Stop & Shop, Giant-Carlisle, and Giant-Landover chains, plans to install an enterprise-wide suite of applications to enhance the consistency of its data company-wide, and serve as a foundation for applications geared toward differentiating its brands in the market.

The retailer will install a suite of retail applications from Redwood Shores, Calif.-based Oracle.

“This program is a fundamental business improvement,” Dave McNally, Ahold’s global c.i.o. told Progressive Grocer. “It will enable us to deliver to our customers the right products at the right place, at the right time, and right quantities. We consider this integral to delivering on our brand promise.”

Ahold USA will deploy applications to support its strategic initiatives across a broad range of areas including merchandising, supply chain, store operations, planning, and analysis.

The enterprise-wide system will replace a mix of packaged and custom applications. “Previously, we had many separate applications,” said McNally. “It’s a complex integration of disparate systems. We tried to have strong capabilities in each individual area, but the result was that the difficulty of trying to integrate it all created challenges in getting consistent information and pricing. The implementation of Oracle Retail is really going to create the foundation for our future retail systems. On top of that foundation we can layer the capabilities that will differentiate us in the marketplace.”

McNally expects the integrated system from Oracle to deliver a single version of truth for its company-wide data, which will enhance the efficiency of its operations. “We’ll have a better knowledge of product sales, which will enhance our forecasting ability and minimize out of stocks,” he said. “We’ll also spend less time trying to reconcile data from the different systems, so we’ll be able to spend more time on strategic analysis and plan an assortment that is more relevant to the shoppers in that market.”

The net result will be better stocked stores, fresher produce, and more relevant assortments for each market Ahold USA serves. And since it will improve the retailer’s ability to purchase product at a better cost, it will help drive down prices for the shopper, as well.

Ahold USA operates the Stop & Shop Supermarket Co., headquartered in Quincy, Mass.; Giant Food, LLC, based in Landover, Md.; Tops Markets, LLC, with headquarters in Buffalo, N.Y.; and Giant Food Stores, LLC, based in Carlisle, Pa. Jointly they operate over 800 stores.
-- Joseph Tarnowski