Food City Adopting DSD Supply Chain Solution

Food City is adopting GlobalWorx's OOS-Alert solution that the firms said would help the retailer and its direct-store delivery (DSD) suppliers to maximize store-level control of fast-moving consumer goods.

“Our top priority is to meet and exceed the demands of our customers each time they shop with us, so we always want to address potential out-of-stock issues before they happen," said Dan Glei, SVP of merchandising and marketing for Food City. "GlobalWorx gives us a vastly improved ability to communicate with our DSD suppliers and ensure the right product is available to our shoppers whenever they want it.”

As a result of the new partnership, Food City aims to keep popular items such as snack foods and beverages in stock around the clock. 

According the GlobalWorx website, retailers can lose 4% of their sales every year simply from common items being out of stock or not readily available on shelves. The grocery tech firm also states that 70% of customers who can't find the desired item will defect to a competitor.

“Costs decrease, and customers are more satisfied when retailers and their DSD suppliers collaborate to ensure that promoted and other products are in stock at all times,” said GlobalWorx CEO and President Bill Lecznar. "We’re proud to work with Food City and help the company retain customers and gain new ones by applying our technology to solve one of the key challenges facing retailers today—out of stocks."

Food City parent K-VA-T Food Stores has headquarters in Abingdon, Va., and operates 131 retail outlets in four Southeast states.