1. Order Merge JustificationOrder Merge Justification
Richard Houdlette
Director of Operations
Associated Grocers of Maine Inc.

2. Project GoalsProject Goals
 The purpose of the “Order Merge Initiative” is to
combine orders, reduce the travel and increase
the (PPH) pieces per hour.
 The result will be significant labor savings as well
as related expenses such as fringe benefits and
operational costs.
 Initiative will have to be closely monitored for
effect on customer service requirements such as
accuracy and service level.

3. DescriptionDescription
 Based on parameters in programming
orders will be merged by section at the
time of billing.
 Billing will produce a single pick ticket
with multiple orders.
 Each pick label will have a alpha character
(A,B,C) identifying which container the
product needs to be picked to.

4. TechnologyTechnology
The modification will only be
programmed for picking labels at
this time.
Programming for RF, Voice and lists
is on the horizon.
Labor standards will be incorporated
as part of the programming.

5. Team/ResourcesTeam/Resources
Associated Grocers will test the mod
in the QA environment.
Will role out the implementation in
phases beginning in the Candy
Repack area.

6. ProceduresProcedures
Once QA testing is complete written
procedural documents will be
created to train users.
Supervision will closely monitor for
documenting any inaccuracies.

7. ScheduleSchedule
Completion of programming is
targeted for June 1, 2004.
Completion of testing is targeted for
July 1, 2004.
Phase 1 implementation by July 12,
2004.
Complete Implementation by
September 1, 2004.

8. Analytical JustificationAnalytical Justification
Travel as a % To Total Labor
55%
12% 15%
31%
19% 17%
27%
2%
17%
36%
0%
10%
20%
30%
40%
50%
60%
G
roceryC
igarettes
C
andy
Frozen
D
airyG
R
EachesProduce
Produce
Sp.
M
eat
Total
Warehouse Sections

9. Analytical JustificationAnalytical Justification
Average Pieces Per Order91
37
15
23 27 29
23
12
28
0
20
40
60
80
100
G
roceryC
igarettes
C
andy
Frozen
D
airyG
R
EachesProduce
ProduceSp.
M
eat

10. Analytical JustificationAnalytical Justification
Order Size By Class113
24
14
23
29
5
1 0
30
5
34
39 23 10 7 7 19 2 1 8 4 12
27
23
12
6 4
38
4 3 5 3
10
0
20
40
60
80
100
120
Grocery
Cigarettes
Candy
Frozen
Dairy
G-Eaches
D-Eaches
F-Eaches
Produce
P-Splits
Meat
Supermarket Superette C-Store

11. 75%
24%
41%
64%
24%
55%
73%
18%
50%
21%
29%
56%
60%
50%
75%
13%
5%
40%
8%
8%
15%
52%
64%
36%
17%
44%
22%
13%
75%
38%
4%
63%
12%
6% 7%
74%
82%
75%
10%
34%
20% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
X-DockHBC
In-HouseHBC
Grocery
Cigarettes
Candy
Frozen
Dairy
G-Eaches
D-Eaches
F-Eaches
Produce
P-Splits
Meat
Turkeys
Warehouse Sections
Supermarket Superette C-Store
% of items > 3 By Class% of items > 3 By Class

12. Conclusion / TriviaConclusion / Trivia
 To travel the entire warehouse it takes 22.5
minutes or 1.55 miles.
 To fill a weeks worth of customer orders
selectors travel 690 miles a week or 35880 miles a
year.
 Warehouse selectors are paid $164845 purely for
travel annually.
 The Order merge initiative could potentially save
$82423 in labor, $32969 in benefits for an annual
return of $115392.