Safeway Inc. (Safeway) is the second largest supermarket chain in North America, with 1,678 stores and over US $44 billion in revenue.Its United States retail operations are located principally in the Western U.S. and the Mid-Atlantic region, while Safeway’s Canadian retail operations are located principally in Western Canada.Competition in the supermarket space is fierce with both general merchandise and dollar stores now operating in the same space, driving the retailer to take measures to streamline their operations and improve margins.
Despite being one of the largest retailers in North America, Safeway operates in a highly competitive arena where margins are under constant pressure and consumers are relentless in their demand for quality products at low prices. To meet this challenge, Safeway is focused on reducing costs, streamlining workflow processes and expanding their direct sourcing and private label programs. Among the process issues that Safeway faced were challenges with order planning and execution, including manual procedures and high error rates with orders. Supplier collaboration was also a big issue, with tendering and supplier onboarding not running efficiently. Safeway was also challenged to meet high quality standards and compliance with regulations such ISF 10+2. As a result, the retailer identified the need for a system that could manage many of these issues and also integrate with existing systems.
To address their ongoing challenges Safeway put out a tender to find a third party vendor with an appropriate solution. After reviewing a number of solutions, CBX, Core Solutions’ award winning software was selected, based on extensive experience supporting some of the world’s leading supermarket and general merchandise chains such as Migros, ICA, Home Retail Group, Kmart and others. Safeway was also drawn to the latest generation of CBX software which offers a SaaS version, hosted in the cloud, with a number of new features such as a social forum to support collaboration and advance dashboard tools to enable management by exception. By implementing CBX, Safeway is able to streamline their end-to-end sourcing, order, logistics and finance processes. CBX will also automate the tendering process and facilitate order planning and execution. The CBX Supplier Collaboration tool will help Safeway manage onboarding, quality assurance and inspections and also compliance with ISF 10+2 and other regulations.
By utilizing CBX SaaS with cloud hosting, Safeway will not need to invest in additional hardware, infrastructure and resource. Supplier management, quality control and assurance and compliance are easier to manage and improve with the CBX Supplier Collaboration tool. Safeway has achieved greater operational efficiency with a streamlined supply chain flow. Manual data input is reduced, bringing greater productivity to the workforce and less need for additional resources. Greater automation is achieved across a number of processes, such as tendering, supplier onboarding and quality assurance. As a result of these operational changes, Safewayis rapidly expanding their direct sourcing and range of private label, putting the retailer on track to improve their margins by up to 33%.