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Giant Eagle, Inc. yesterday said it expanded its relationship with DemandTec by adding the vendor’s deal management software to the price and promotion optimization solution the grocer currently uses.
The grocer also extended its existing subscription of the price/promo software based on the successful results it has seen from the technology. Giant Eagle first deployed DemandTec’s Everyday Price Optimization software service to help manage its daily retail pricing in 2005.
“DemandTec has helped us to plan and execute a pricing strategy that provides consistent everyday value to our customers and at the same time allows us to meet our objectives for company performance,” said Stephanie White, v.p. of sales systems and operations at Giant Eagle. “We are working together to further advance our pricing and promotions management.”
Giant Eagle will use the Deal Management software service to place manual process that consumed significant resources and occasionally caused inaccurate deal submissions, and required the archival of paper deal sheets for seven years.
“The process for negotiating, submitting, and executing deals has been very labor intensive, requiring a significant amount of non-value added work, and has also lacked built-in quality controls, leading to errors and omissions, time delays, and team member frustration,” said White. “With DemandTec, these problems are greatly reduced, so we expect our team to be more productive and better able to concentrate on delivering the best available programs to our shoppers.”
White added that the DemandTec solution is expected to improve the processes for ad negotiation and execution, provide a significant time savings for the category teams and vendors, and help to ensure Sarbanes-Oxley compliance. The company also expects to greatly reduce team member time spent on non-value added activities, while providing analytics that will deliver insights into total delivered cost.
“At Giant Eagle, we strive to improve our business processes to help take costs out of our system, enabling investments in items such as our fuelperks! customer loyalty program and ongoing price reductions,” said White. “[The] Deal Management service will help in our development of a streamlined and integrated promotional process, providing enhanced planning and communication across the supply chain while improving business user decision making.”
Giant Eagle operates 159 corporate stores and supports 61 independently owned and operated supermarkets in addition to 150 fuel and convenience stores throughout western Pennsylvania, Ohio, north central West Virginia, and Maryland.