(LOS ANGELES) — To introduce more integrated planning processes and improve in-store merchandising, Unified Western Grocers has implemented Operational Category Management (OCM). Unified initiated the OCM approach based on results from a recent study conducted by the Food Distributors International (FDI), “Whose Shelf Is It Anyway? In-Store Implementation: Enhancing the Competitiveness of the Independent Retailer.”
The study, which focused on the challenges independent retailers face in order to keep pace in today’s marketplace, found that OCM is a proven business practice that can help close the competitive gap between independent retailers and the larger chains. As a result, independent retailers have found category management methods help them place product on the shelves in a more cost-effective manner.
“This is the first time we have taken such an integrated approach to our business,” said Bob Lutz, executive director of procurement for Unified Western Grocers and director of the training program. “We developed interdisciplinary teams with members from different departments within the company. This approach meant everyone heard the same information and thus, worked together toward the same goal.”
During the training, category teams were created from all of Unified’s procurement areas as well as Manufacturing, Retail Service, Retail Advertising, Information Services, Apple Markets and Accounting. A total of 75 employees participated forming 10 teams with representation from the Southern California, Northern California and Pacific Northwest Divisions. Dr. Brian Harris, who is with The Partnering Group and recognized as a pioneer in the category management approach, conducted the six-week training program for Unified that ended on July 18.
“Feedback from our employees was positive,” said Lutz. “They were excited to be part of this learning process. Participants got to know each other better as a result of being assigned to the various teams and thus, they are continuing those relationships as they implement the OCM practices.”
The final step in the OCM training process took place at the last of three FDI In-Store Implementation (ISI) meetings held in Long Beach on July 30-31. At this interactive session, participants learned the how-tos of putting category management to work in their retail operations. With the training completed, Unified now operates a fully integrated planning process to evaluate new items and place them on the shelves quicker.
“Category management offers tangible benefits to our company,” said Lutz of the strategic move to implement OCM practices. “It is designed to improve our company’s most important asset – inventory.”
Unified Western Grocers, Inc. is a retailer-owned wholesale grocery cooperative that supplies independent retailers throughout the Western United States. Unified and its subsidiaries, which generated approximately $3 billion in sales during the 2000 fiscal year, offer independent retailers all the resources they need to compete in today’s supermarket industry.
This press release contains forward-looking statements with respect to benefits expected to be derived from the proposed acquisition. There are a variety of factors which could cause actual results to differ materially from those anticipated by the statements above. These factors are outlined in Unified's Form 10-Q and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.