The current PDA system utilised by Coop is DynamicStore from Consafe Logistics and was installed in 2006. "We used to use hand-held terminals without a product register in our coop stores. We needed a more modern system to allow us to rationalise our business. Today, we have in excess of 900 stores in Norway and make use of a total of 1,500 PDAs."
Can hold the entire product range
The ERP system contains the entire product range for the stores. This information is transferred to the computer system used in each individual store and then onto DynamicStore on the PDA. All data capture carried out using the hand-held terminal is transferred back to the shop computer system and then to the ERP system. "Orders are sent to our regional warehouses in Oslo, Langhus Bergen, Trondheim, Stavanger and Tromsø, where ordered products are picked and distributed to the individual stores."
Several hundred thousand orders
The most commonly used function from the DynamicStore main menu is the product order function. "Every year, around 500,000 orders are placed via our system, comprising around 30 million product lines. We also use the hand-held terminals for our annual stock counts. What’s more, most of the coops use the system to register all wastage. And last, but not least, we can use the PDA system to order labels for shops which do not have electronic shelf labelling." "Each coop/store is free to choose between electronic or paper-based shelf labels. When shop assistants order goods using the hand-held terminal, they scan the bar code either from the paper label or the display on the shelf label," explains Børge Thomassen. "DynamicStore can also be utilised as a simplified sales function where a salesperson, perhaps in the building materials department, places a sales order which has to be printed out and registered at the cash desk before the customer can make payment."
System testing
Coop Norge Handel AS has implemented a project involving data communications via Coop’s wireless network. "This would mean that our shop assistants no longer have to move when they want to transfer orders for goods, labels, data from stock counts, register wastage etc. They can perform such procedures directly from the shop and the data is sent by wireless transfer to the ERP system," continues Mr. Thomassen. He believes this new wireless system will provide significant gains in efficiency for the shops.
The first wireless systems have already been introduced in several Coop stores in East Norway.
Rapid pace of development
"We used to order goods by fax or telephone. Now we have web based systems to take care of this work. We are in the process of executing a project involving the introduction of automatic goods supply for our stores. This will allow us to use the hand-held terminals mainly for control of wastage and stock counts," explains Mr. Thomassen.
Continuous developments
All further developments to the system will be made in cooperation with Consafe Logistics. "This is a very successful partnership," claims Mr. Thomassen. "Consafe Logistics makes constant updates to the system in order to increase functionality. If there are any faults in the hardware, there is an exchange pool which circulates terminals being serviced and terminals being returned to the stores," continues Mr. Thomassen. He confirms that the Coop stores now rely on having terminals available so they can order goods.
Benefits
"When our shop assistants scan products using DynamicStore, they get an overview of the price and, if necessary, more detailed information on each article, for example, special offers. They can browse through a number of fields/banners on the terminal screen. These provide information on the volume of previously placed orders for a certain article or the name of the supplier/manufacturer," explains Mr. Thomassen. He goes on to explain that orders received from the stores linked to the different Coop chains may have from 1 to 1,400 product lines. "Placing such comprehensive orders over the phone or by fax takes an extremely long time and represents an increased risk of error. DynamicStore is now utilised by the shop managers in the smaller shops. In the larger stores, the system is utilised by the product area supervisors. The main rule is that the shop manager or shop manager’s assistant is responsible for ordering goods," confirms Mr. Thomassen.
A simpler working day
Assistant shop manager Trine Ukkestand at Coop Prix in Linderud, Oslo confirms that the PDA system has made ordering goods, registering wastage and ordering labels much more simple. "The system is very stable and feedback from our employees has been excellent. They use the hand-held terminals to register wastage (breakages and date). This provides us with an excellent overview of inventory and makes ordering goods a much quicker process. The system has made our working day much simpler," she confirms.
Information on Coop
Coop is the only retail trade business in Norway owned by consumers. 1.3 million members in Norway each have one shareholding in their local coop and receive their share of profits. 131 coops are cooperated via their shareholdings in Coop Norge AS, with Coop Norge Handel AS as a wholly-owned subsidiary in charge of administration of the chains, purchasing, product range and logistics. Coop Norge Eiendom is in charge of centralised purchasing, development and sale of properties for Coop. Coop has a total of 1,200 shops, of which approx. 900 are grocery stores. The group’s turnover in 2009 was approximately NOK 36 billion.