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H.E BUTT GROCERY COMPANY The New Digital Strategy ; A Leader in ECR Implementation SITUATIONAL STATEMENT In the year 2000, the internet was emerging as a new distribution channel that would transform the grocery industry by providing a powerful communications network for the direct sale of groceries to the consumer. The internet was also a promising tool for the way that business to business transactions would take place. There were new opportunities to gain efficiencies in the supply chain and in the distribution channels. Given that the grocery industry is extremely competitive, Fully Clingman the president and CEO of H.E.B. Grocery Company are placing renewed emphasis on technology and new systems to gain greater market share…show more content…
On top of this H.E.B needs to focus on adapting products and services to changing customer habits. They are setting targets for 2001 and these are, basket analysis at the customer level, CSO in 70% if not all stores, SBP for all first-tier and second-tier suppliers, provide scanner data to suppliers, moving 50% cube volume to cross docking, add electronic tagging, increase SKU count by 40%, DSD suppliers moving to cross-docking. The question now is where do we go from here? S.W.O.T ANALYSIS STRENGTHS (A) The New Digital Strategy In 1999 HEB is currently ranked 14th among the leading grocery retailers in Texas with 240 stores and $6.5 billion in sales. With the grocery business becoming more streamlined and extremely competitive HEB will have to constantly get getter and more efficient in their supply and most importantly their distribution channels, to further reduce costs. Realizing this, HEB is very strong at implementing and seeking new technologies to help them with inventory, suppliers, stocking, distribution, customer relations and scanning. They have gained and will continue to gain strength in the future through injecting new efficiencies in the supply and distribution chains. They created (SRS) store replenishment systems to trigger supplies and (POS) point of sales data to further understand their distribution process. HEB essentially realized the importance of new digital strategies (new digital efficient
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