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shelf price and inventory systems

Eckerd, one of the nation's leading drug chains, sees technology as the key to increasing speed, accuracy, throughput, and ultimately, customer service. The 100-year-old drug chain set a direction for their 2,800 stores nationwide to remain on the cutting edge of technology with integrated point of entry, shelf price and inventory systems. The emphasis on technology is supported by their parent company, JCPenney, who purchased Eckerd in 1997.

Headquartered in Clearwater, Florida, Eckerd employs more than 27,000 associates in 20 states in the northeast, mid-Atlantic, southeast and southwest; in addition they operate more than 750 Eckerd Express one-hour photo labs in 13 states.

According to Thomas Reichert, Senior Director of Store Systems, the corporation's five-year, chain-wide strategy is to:

  1. Build a real-time wireless network at point of entry to balance inventory and replenish stock, improving accuracy and throughput.
  2. Implement a computerized shelf price audit system, eliminating customer complaints and government audit charges.

Use scanners at checkout for scanning, EAS and bagging, increasing efficiency and profitability. A keystone of the strategy was Eckerd's partnership with Symbol Technologies. "In 1997, Eckerd entered new territory with the purchase of the Fay, Thrift and Kerr drug chains," explained Reichert. "We implemented Symbol radio frequency systems along with the Symbol hand-held computer with integrated scanner in the new stores. The savings came down to eliminating hardwiring and boosting accuracy and speed at the point of entry. Additionally, the NCR 7452 registers have a Symbol wireless point-of-sale card installed, making the registers wireless."

 

Strategy #1--Wireless Reordering

Symbol's high-performance, Spectrum24® wireless LAN places real-time information at 5,000 Eckerd checkouts. "With all our registers on a Local Area Network, customers are assured of fast service and our associates are assured of an efficient inventory control system. We've cut ordering time up to one hour per week per store--a big number when you consider we have 1,000 stores using Spectrum24®. Also, there's no hardwiring, so we can redesign stores without recabling," said Reichert. Eckerd's Order Point/Order Quantity system functions two ways:

  • Enter the Order Point designation from shelf label, and enter the quantity needed
  • Enter the Order Point designation from shelf label, and the system automatically accesses the item's retail history and orders half the order point.

Strategy #2--Shelf Price Audits

Eckerd scans every shelf price label with the Symbol PDT 3140 hand-held scanner on a regular basis to be sure the bar codes scan and the pricing is correct. This shelf price audit system is vital to customer service-avoiding price checks, complaints and wasted time at checkout. Associates simply scan the item and check the price which is "looked up" in the store price file via the Spectrum24® network.. In addition, Eckerd is assured that they will pass the local county Weights and Measures inspectors' unannounced price audits. "We call it the SPA gun for Shelf Price Audit," Tom Salisbury, the Store Manager explained. "Just scan the UPC code and up comes the Eckerd price history, item number, the retail price, sale price, everything. I can change the price for an in-store special anywhere in the store, and it automatically changes the master register up front. It's a tremendous labor saver."

Strategy #3--Scan and Bag

Associates use the Symbol in-counter scanner as part of their checkout scan-and-bag system. The scanner automatically decodes the item ID bar code and deactivates the Checkpoint Electronic Article Surveillance tag. This integrated system increases transaction speed and throughput at the registers. The Checkpoint EAS system integration with the LS 5800 scanner eliminates the Checkpoint pad on each counter, thereby cleaning up the register area. "There's high cashier turnover at the registers, and the built-in scanner is easy to use-no training needed-also, there's less of a chance for a mistake," added Salisbury.

A Business/Technology Partnership

In addition to providing LANs, in-counter and hand-held scanning systems, Symbol is Eckerd's partner of choice because they offer a one-stop approach:

  • Consultative solutions to business needs
  • Project management, integration and documentation
  • Training and technical support for help desk and end users
  • Depot service-providing quick turnaround for routine maintenance and repairs
  • With such support, Eckerd will continue to rely on Symbol Technologies to help grow their business and facilitate the flow of information.