Associated Retail Operations recently completed its rollout of computer-generated ordering, or CGO, in center store grocery and general merchandise. The system helps store teams order enough product to keep shelves stocked without carrying more inventory than needed.
ARO President Darin Peirce recently announced that the project was completed 19 weeks ahead of schedule, calling it an important step toward greater efficiency, better inventory control and stronger in-stock conditions.
For those unfamiliar with CGO, the idea is fairly simple. The system looks at how much product a store has on hand, what has been selling and what is expected to sell. It then uses that information to generate an order to replenish the store.
When the information is accurate, CGO can help stores have the right amount of product available when customers want it, while reducing unnecessary inventory in the backroom. Ashlee Johnstun, ARO director of systems and integration, said stores are already seeing improved inventory turns, less backroom inventory and stronger in-stock performance.
“The software generates the order, but great retail execution creates the data that makes those orders effective,” Ashlee said.
That connection between technology and store execution is an important part of how CGO works. The system depends on an accurate picture of what is actually in the store. Receiving, shrink tracking, product transfers and checkout scanning all contribute to that picture.
Something as routine as scanning an item at the register makes a difference. Each sale updates inventory and becomes part of the information used to create future orders. An incorrect scan or product code can make the system think a store has more or less inventory than it actually does. Eventually, any incorrect information affects what gets reordered.
CGO does not take store teams out of the ordering process. The system generates an order based on the available data, and teams can review and modify the order before it is submitted. Store knowledge and good retail practices remain important parts of the process.
ARO took a gradual approach to the center store rollout, introducing CGO one section at a time across stores. Team members counted assigned sections and worked to establish accurate inventory before each area went live. The approach helped stores become familiar with the process while continuing their regular responsibilities.
Casey Clark and Jonathan Harris have played key roles in the CGO rollout, supporting the data preparation, validation, minimum-setting and store setup required to bring each section live. They continue to support stores through CGO training, troubleshooting, process improvements and ongoing rule updates, including adjustments for holiday delivery schedules.
Ashlee said learning to trust the system takes time. Her team has supported stores with training guides, StoreLink resources, regular training calls and direct assistance from subject matter experts. Teams have been able to review orders, ask questions and better understand how their own daily practices affect the results.
The potential benefits extend beyond ordering. Better inventory information can help stores reduce excess product, improve product availability and spend less time on manual processes. The goal, Ashlee said, is to give store teams more time to serve customers, lead their teams and grow the business.
ARO’s experience may also be helpful to independent retailers considering CGO. Ashlee said retailers do not need to have every process perfected before beginning.
“When we implemented total Center Store CGO, we didn't have all the answers, but looking back, I'm glad we started when we did,” Ashlee said. “The operational improvements and efficiencies we've gained have far outweighed the initial challenges.”
Completing the center store rollout represents a major milestone, but the technology is only part of the accomplishment. Its continued success will depend on the store teams who receive product, maintain accurate inventory, scan purchases correctly and review the orders CGO creates.
When those pieces work together, CGO can help stores accomplish something customers immediately understand: having the products they want on the shelf when they want them.
