Kroger employs the web to better execute its supply chain

To keep inbound goods moving to stores in a timely manner, particularly grocery items that might have a limited shelf life, the Kroger Co. is rolling out a corporatewide web-based transportation management system that combines supply chain visibility with shipment optimization. So when it sees that an order is due to arrive at a distribution center at an unexpected time, it can combine that information with a real-time report on the whereabouts of trucks available for store deliveries.

Kroger, following a pilot program conducted for the past year, is using the Elogex OneNetwork transportation management system, a hosted web-based platform from Elogex Inc., Charlotte, NC.

"You don`t have to wait until the next day to ship to a store if you know you have a truck already going to the same place," says Jerry Overcash, executive vice president and COO of Elogex.

As part of the OneNetwork, Kroger is also implementing a system of automated appointment scheduling to reduce the time and costs typically involved in arranging and receiving shipments.

Overcash notes that Kroger is adding 400-500 carriers and about 100 suppliers to the system and expects to have its entire distribution system connected by this fall. He adds that the OneNetwork works with third-party carriers as well as Kroger`s own freight system, extending its visibility and control to all shipments.

Kroger is also integrating use of the OneNetwork system among multiple internal operating units, including merchandising, transportation and distribution departments, so managers can see the impact on shipping costs and schedules on different operations. Without such integration, individual departments within a retail company may favor their own operations at the expense of another, Overcash says. For example, a merchandise manager may buy a large assortment of goods without considering the cost of transportation, and a transportation manager may seek to save costs by scheduling trucks on particular days or routes, without realizing that he could be overloading a particular distribution center.

Kroger operates 2,461 supermarkets and multi-department stores in 32 states, including brands such as Kroger, Fred Meyer and Fry`s Marketplace. It also operates several hundred convenience stores, jewelry stores, fuel centers and food processing plants.