Giant Eagle Employees Look Sharp with Help from Spend Analysis, Sourcing Tools

Food and fuel retailer identifies 20 percent cost savings on employee uniforms through Ariba solutions

Food and fuel retailer identifies 20 percent cost savings on employee uniforms through Ariba solutions

Sunnyvale, CA — March 7, 2006 — Food and fuel retailer Giant Eagle has been able to identify significant cost savings using spend analysis and sourcing solutions from Ariba, the solution provider announced this week.

Founded in 1931, Giant Eagle has grown to be the number one supermarket retailer in its region, with 138 corporate and 78 independently owned and operated supermarkets in addition to more than 90 fuel and convenience stores throughout western Pennsylvania, Ohio, north central West Virginia and Maryland. The privately held company brings in approximately $5.5 billion in annual sales.

Finding the Opportunity

Using Ariba Analysis, Giant Eagle uncovered an opportunity to save on new uniforms for approximately 36,000 employees at its supermarkets and GetGo fuel and convenience locations. The company then secured the apparel at a savings of more than 20 percent through Ariba Sourcing.

"At Giant Eagle, we are aggressively pursuing ways to identify cost savings opportunities and are committed to reinvesting those savings to improve the value proposition for our customers," said Kevin Srigley, Giant Eagle senior vice president of marketing. "The use of Ariba's spend management tools is one of the ways in which we have been achieving these goals. Our sourcing of uniforms is just one of many examples of the success we are having."

The opportunity to save on uniforms was identified through Ariba Analysis. Working with category experts at Ariba, the Giant Eagle team structured an online event in which a field of national and local suppliers bid on seven uniform items.

Driving the Savings

Nearly a dozen suppliers competed in the event, and when it was complete Giant Eagle had lowered its costs by more than 20 percent. "We were very pleased with the results because we were able to source a key item at a substantially lower cost from a local supplier," Srigley said. "In doing so, we secured attractive and functional uniforms made to our exact specifications and ensured that they can be easily delivered to our retail locations in Pennsylvania, Ohio, West Virginia and Maryland."

"The new uniforms have added another enhancement to the Giant Eagle shopping experience for both customers and employees," said Loretta Pollitt, store manager with a Giant Eagle supermarket in Pittsburgh, PA. "Employee morale has improved with uniforms that are easy to care for and functional. Our customers have also taken notice, commenting on how professional and attractive the uniforms look."

"Giant Eagle has a reputation for identifying and implementing innovative technology solutions that enhance the efficiency of its operations," said Lou Unkeless, chief marketing officer at Ariba. "By using Ariba's spend management tools, the company is effectively leveraging and aggregating its spend, implementing best practices, and creating better contracts that enable it to deliver even greater value to its customers."

Additional Articles of Interest

— OEMs are ready to embrace Lean Manufacturing after the 2001 recession, but traditional approaches were designed for vertically integrated enterprises. The answer to their problem? Extended Lean and Statistical Kanban. Read more in "Extended Lean Can Make Your Supply Chain Hum," only on

— Ready to go beyond traditional financial metrics to measure your company's supply chain? Read the exclusive, "A Non-traditional View of Operational Costs."