This week I learned purchasing function in ERP system and discussed the purchasing process of Safeway. This discussion inspires me to look into Whole Foods’ purchasing process and its ERP system. Whole Foods, one of my favorite grocery stores, is famous for offering local organic products and its high price. It leaves many decisions in the hands of regional and store-level workers. Compared with other retail stores, it’s more difficult for Whole Foods to reach economies of scale when purchasing and to centralize management.
In recent year Whole Foods centralizes meat buying process and partners with enterprise software firm Infor Inc. to create a new retail management system, to centralize 12 disparate IT systems, home-grown ERP system running across 431 stores. This ERP system integrates its business process in single system and boosts its revenue. This new ERP system enables Whole Foods automate the process of the process of tracking the items on store shelves and submitting restocking orders. By real-time analytics, system also helps Whole Foods know which stores would benefit from a greater variety of locally produced goods and how its shelves present the products. Moreover, it reduces spoilage and expired products. Whole Foods improves IT and business process.
