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LAWRENCEVILLE, N.J. - UCCnet announced on Thursday that Albertsons will begin implementing the organization's item registration and data synchronization services for its more than 2,300 retail stores in 31 states nationwide. The Boise, Idaho-based chain is one of the first major U.S. food retailers to form such an agreement with UCCnet.
Albertsons will begin implementation in 2003 and will issue communications requesting that its suppliers join UCCnet and prepare to synchronize item information, the company said.
"Albertsons is dedicated to partnering with UCCnet and our suppliers in this industry-changing technology solution," said Larry Johnston, CEO and chairman of the board at Albertsons. "UCCnet global registration and synchronization services will enable us with the integrated data to manage our supply chain effectively as we build our growth momentum in an increasingly competitive marketplace."
Albertsons said the services would enable it to streamline the collection of item data from its suppliers by using UCCnet's GLOBALregistry as a single source to provide supplier and product information to all departments within the company.
An industry study conducted by A.T. Kearney estimated that $40 billion, or
3.5 percent, of total sales lost each year are due to supply chain information inefficiencies. Specifically, the study showed that 30 percent of items in retail catalogs have data errors, which cost between $60 and $80 each and consume 25 minutes of manual cleansing per SKU. Other findings revealed that 60 percent of all invoices generated errors and 43 percent of all invoices resulted in deductions.
During the fall of 2002, A.T. Kearney conducted another study of three suppliers and three retailers that resulted in the conclusion that financial benefits could be realized in the neighborhood of 10 basis points or 0.1 percent of sales dropping to EBIT (Earnings Before Interest and Tax). The benefits were the result of business process changes adopted by the retailers and separately by the suppliers who have implemented these UCCnet industry utilities.