NETWORK TO REPLACE AG NEW ENGLAND MAINFRAME

ADAM BLAIR

MANCHESTER, N.H. -- Year-2000 compliance concerns and a desire to make decision-support data more accessible are the driving forces behind Associated Grocers of New England's plan to install a client-server network in place of its current mainframe computer.

The wholesaler here is in the process of narrowing down its list of potential vendors, to be followed by on-site visits to different vendors' customers, according to Arthur Heathcote, director of information systems and customer service at Associated.

"We hope to make our vendor decisions by the end of 1997, and most of them have indicated they'll need six to 12 months to fully install their systems," said Heathcote. "Our goal is to be able to run the client-server network parallel to the mainframe in 1999."

The problem of year-2000 compliance is high on Heathcote's list of reasons to replace the current system. "The compliance issue affects everything on the mainframe, and if it's all in Cobol -- and most of it is -- the systems are not compliant. In addition, it's becoming increasingly difficult to find technical people with Cobol expertise."

Associated's year-2000 preparation efforts include identifying which systems and devices are ready for the new millennium and which aren't. "The list includes fax machines, the phone system, even the computer-driven devices that run things like our coolant system," said Heathcote. "We're also putting this 'year-2000' list together for the retail stores that we supply."

Heathcote believes year-2000 issues may drive many other companies to upgrade or replace computer systems. "I've talked to many of my counterparts in doing the assessment on this, and a lot of wholesalers in the food industry are in this process now," Heathcote added. "Some of them are astounded by what they have to do to make themselves compliant."

Associated's current mainframe handles a variety of functions, including receiving, billing, receivables and general ledger, said Heathcote. He anticipates the new network will require software packages for purchasing, an enterprise system to handle order entry and inventory control, a system to provide standards such as engineered labor standards, and a financial package.

"We're also looking at an executive information system," said Heathcote. He wants to make decision-support technology available throughout the organization. "I want it to be accessible to everyone from the CEO on down."

While such a major systems overhaul is a large undertaking, Heathcote has been careful to enlist the support of Associated Grocers' top executives.

"I formed an information systems steering committee with the chief executive officer, the executive vice president, the vice president of marketing, the program manager, the director of operations, the financial manager and myself," said Heathcote. "Some members of this group will be making the site visits to ask questions particular to their areas, and then they can compare notes about the different systems," he added.

Associated Grocers of New England supplies about 500 retailers in northern New England out of a distribution center here, and also operates three retail stores.