While the winners of Progressive Grocer Tech's inaugural Innovation Awards may have implemented different types of technologies, each one shared a common theme of making its grocery business operate smarter.

Loblaw Cos. Ltd. eliminated the inefficiencies of running several legacy WMS systems patched together by replacing them with one platform for all of its distribution centers, Star Super Market & Pharmacy created an industry first by deploying an interface that joined its pharmacy and store POS systems, and Stop & Shop developed a mobile app that replaces the need for it to spend money on scanners for its successful mobile shopping assistant program.

Each of these implementations resulted in discernible returns on investments for the respective companies. They are prime examples of how cutting-edge technologies can have a positive impact on a business' bottom line.

Of course, not every innovative technology deployment will see such results – in fact, many aren't successful at all. But what progressive grocers should take away from the examples demonstrated by our winners is that when it comes to technology, as important as it is to keep an eye on what's happening in the industry, it's just as important – perhaps even more so – to watch out for what's coming next.

David Markwell, VP of IT, Loblaw

Loblaw Cos. Ltd.
Technology Implementation: Warehouse Management, Slotting Optimization and Labor Management Solutions
Category: Supply Chain/Logistics
In 2008, Loblaw Cos. Ltd. – which owns and operates more than 25 distribution centers that not only service company-owned and franchised locations, but also 400 affiliates and 1,500 wholesale clients – began a billion-dollar IT upgrade in a program known internally as its "Supply Chain Transformation," with the goal of creating a more streamlined, efficient enterprise.

The central goal of the Supply Chain Transformation program was to lower the cost of operating, offer fresher product on the store shelves and improve inventory position, as well as move to a centralized network, as opposed to its previous system, which consisted of several disparate systems.

"We had old, homegrown systems in place and multiple systems across the distribution centers," says David Markwell, VP of IT at Brampton, Ontario-based Loblaw. "Previously, both the transportation and warehouse systems were located in each distribution center's computer room, and that meant a lot of cost associated with maintenance and having people travel to them."

Part of the program involved converting these disparate systems to a central data center in Toronto. Additionally, it included the deployment of a new warehouse management system (WMS); transportation, forecasting and replenishment systems; and a complete rewrite of its order management systems.

Loblaw worked with Manhattan Associates on the project, using the vendor's warehouse management, slotting optimization and labor management solutions to streamline inventory and order fulfillment while increasing productivity and customer service. Atlanta-based Manhattan Associates performed the implementation, and was able to get 14 DCs on the system within just 20 months.

To date, the implementation has generated a savings of up to $5 million annually. In addition to gaining the ability to use advanced ship notifications, the retailer reduced receiving time by 23 percent, lowered shorts by 50 percent and saw a 5 percent increase in labor efficiency.

ALL STARS Star Super Market & Pharmacy's executive team (left to right): Morgan Daniel, chief HR officer; Larry Pitts, CFO; Darden Heritage, CEO, owner and president; Lonnie Miller, COO; and James Ahlschlager, CIO

Star Super Market & Pharmacy
Technology Implementation: ECRS Catapult With QS/1 NRx Integration
Category: In-store Systems
While many supermarkets operate pharmacies, the point-of-sale systems for each have traditionally been stand-alone, which meant that the company as a whole had to operate two separate sets of data, one for pharmacy purchases and one for grocery purchases. And since these were always from separate vendors, each set of POS systems called for separate peripherals as well, so the signature pads for transactions at the front end checkout were often different from those in the pharmacy.

What's more, the two systems generated their own sets of data and had to be reconciled manually. Darden Heritage, Star's owner, wanted to create a hybrid system that integrated the co-existing businesses under one roof with one technology system that would provide ease of use, customer convenience and accurate data. Indeed, Heritage is a hybrid himself: a grocery owner and operator, and a pharmacist by trade.

"One of our charges was to incorporate in the IT side a system that can communicate both on the pharmacy side and on the grocery store side," explains Lonnie Miller, COO of Huntsville, Ala.-based Star. "Our existing POS solutions were two different systems that didn't communicate. You could download pricing files to the grocery side and you could download pricing files to the pharmacy side, but you couldn't download them to both systems, and that was what we wanted to do."

They wanted a system that would enable shoppers to ring up prescriptions anywhere in the store and still be HIPAA compliant. "At the same time, we wanted shoppers to be able to ring up bananas and weighted items at the pharmacy side where the pricing would be correct," adds James Ahlschlager, Star's CIO. "So we went shopping for a system that would take care of our dynamic needs. With the previous system, we could ring items out on the grocery store side, but the problems were in the reporting. Once they rung out, we would have to take those sales and manually enter them into the pharmacy software to make sure they were reported correctly and that they signed all the necessary docs. At the same time, when you start looking at movement reports, the pharmacy side couldn't report how many pounds of bananas you sold if they were rung up at the pharmacy."

The project installation began in fall 2010 with the ECRS system; the final piece was when the pharmacy integration was completed by fall 2011.

The two-way interface between QS/1 and ECRS software moves prescription data to the POS for proper checkout and returns the electronic signature of the patient for logging verification of pickup and compliance. Star management is now able to electronically meet all requirements of third-party prescription payers while assuring all prescriptions are being checked out at the proper price, and can counsel patients who aren't compliant, to enhance their health outcomes.

This consolidation of store systems has helped Star provide better service to its customers, increase customer loyalty, streamline work flow and prevent costly errors resulting from inaccurate data.

What's more, the system generated an ROI in about six months from reduced downtime, savings for increased productivity and overall cost savings (such as inventory costs).

Easier Shopping Stop & Shop's Scan It! Mobile technology takes advantage of the smartphones that many customers already have.

Stop & Shop (A division of Ahold USA)
Technology Implementation: Scan It! Mobile
Category: Online/Mobile
Stop & Shop's Shopping Buddy has steadily evolved since its launch more than 10 years ago. Originally, it was a tablet-sized unit that slid into a dock that was built into the shopping cart. Over time, the scanning units grew smaller in size, eventually consisting of a handheld unit that slid into a small dock on the cart.

Now there's no unit, nor is there any dock.

Instead, the scanning unit is the shopper's smartphone via a mobile app, and the dock is the shopper's mobile phone case. The latest iteration of the technology, developed by Quincy, Mass.-based Modiv Media, eliminated a large capital expense and increased ease of use by taking advantage of the smartphones that most shoppers already carry and are adept at using.

The app, called Scan It!, is the first fully integrated mobile shopping application that allows customers to scan and bag while in the aisle, tally prices, and receive targeted offers based on location in-store, items currently in basket and past purchase history. They can then pay for their groceries without having to wait in the checkout line.

Stop & Shop tested the app in a closed pilot conducted in April 2011, and based on that success, launched it publicly in select stores in July 2011. It's now being used in nearly 50 stores, with plans to expand to 350 stores in the first half of 2012.

As such, Modiv had to design its solution to integrate with Stop & Shop's POS and CRM systems, as well as support the grocer's successful loyalty card program. This was accomplished and delivered through an app that provides accurate prices, quick scans, personalized coupons and express checkout.

"It's about customer choice," notes Mark McGowan, president of the Quincy-based Stop & Shop New England Division. "We've received tremendous feedback on our Scan It! technology because it allows customers to simplify their shopping experience – from tracking their budgets while they shop to reducing their time in store. We understand that mobile apps are changing the way consumers shop and are ... the first supermarket company in the United States to offer this option to customers."