A Grocery Chain with 2,300 Stores Implements Shrink Management

A tier-one grocery chain with multiple banners and 2,300 stores has licensed ADC's 6.4.0 Shrink Management software module, with food donation tracking and reporting features and implemented the system, so far, across 160 of its stores.

With the Shrink Management module, the grocery chain has realized a reduction in shrink of 19% to 25% in their fresh food department categories, as well as a reduction in the amount of labor required to capture and report shrink by 50%, through the use of hand-held wireless bar-code scanners.

The Shrink Management software module assists the grocery chain in receiving increased tax deductions by generating accurate IRS-Compliant food donation reports, allowing food items that are on or past their "sell-by" date to be charitably donated to food banks as a tax write-off.

"With the Shrink Management module, we are able to view reports of food donated by our stores, including a complete history of each item donated, the amount and cost," stated a member of the grocery chains FIM Project Team. "We then submit the donation reports to the IRS and receive a cash tax benefit of approximately 50% of the difference between the retail price of the food and the cost of the food, which has relieved the company's tax burden across the chain by millions of dollars per year. The tax benefits associated with the Shrink Management module easily paid for the software and project costs within the first year."

As a module within ADC's P-Cubed In-Store Food Production system, the Shrink Management module sets a foundation for ADC's Production Planning module. The Shrink Management module tracks products being donated at the item level and identifies perishable items that are over produced or un-sellable. The software also provides the ability to track products used for demonstrations and sampling and to isolate losses for insurance claims from catastrophic events such as power failures, floods, tornados, hurricanes etc.

"The Shrink Management module helps our clients yield a significant return on investment, in a short amount of time because of the increased tax deductions they receive," stated Steve Loveridge, ADC's CEO. "The P-Cubed system is modular in design, to allow clients to install the modules that address their FIM needs. Over time, more modules can be activated as their FIM needs evolve, which can result in further savings."

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