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:
- Build a real-time wireless network at point of entry to balance inventory
and replenish stock, improving accuracy and throughput.
- 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.