Basket Analysis HEB

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  • Published : March 18, 2009
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HEB has implemented Scanner Based Payment system in its all of its stores. Use of SBP produced reduction in transportation costs for HEB suppliers and reduction in inventory level for HEB. POS method increased accuracy and speed of checkout. POS also offer customer convenience and accuracy. SBP formed high level of trust between suppliers and HEB. HEB has installed Unix Mini-computers, which were linked to POS and then linked to HQ. Exchange of information regarding sales, orders and personel between stores and headquarters was conducted through this system. Store operations were supported by Direct Store Delivery system for receiving and invoicing. Emphasize on usage of Email provided better communication among stores, warehouses and suppliers. Basket analysis provided HEB and its suppliers informational advantage. Using Basket analysis, HEB could establish relation between demographics buying patterns, place slow moving items in profitable baskets. It also discovered problems in supplier’s distribution process. Sharing this information with its supplier for free, HEB manage to get lower prices from suppliers and participation of suppliers in HEB-initiated programs. Basket analysis also helped HEB to increase SKU count by 40%, with additional regional variety. HEB adopted CRP (Continuous Replenishment Program) with vendors that allow them to supply product using warehouse shipment and inventory data rather than receipt of HEB. Along with CRP, HEB has also embraced use of SRS ( Store replenishment System) to produce perpetual inventory, producing orders automatically to continuously restock the store. Continuous Replenishment Program reduces the inventory level, reduces the ordering and logistics costs in routing supplying the warehouses. Also decreases the time category managers required for buying administration. Depending on this program HEB is shifting from reactionary mode of operation to forecasting and planning mode. Advanced scanning accuracy had...
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