Associated Grocers, Inc. Rolls Out Voice-Directed Selection Across Distribution Center.

Business Editors

DALLAS--(BUSINESS WIRE)--Dec. 16, 2002

OMI International, a leading provider of supply chain management solutions, along with Vocollect, the global leader in voice-directed distribution systems, today announced the roll out of a real-time voice-directed selection system within Associated Grocers Inc.'s distribution center (DC) in Baton Rouge, La.

An independent wholesale distributor, Associated Grocers recognized the potential for voice technology as a competitive advantage for improving service levels to its 200-plus independent grocery retailers throughout its market of Louisiana, Mississippi and Texas. Using a detailed return-on-investment analysis, Associated Grocer's management team budgeted for a voice-directed order selection system with the expectation of improving productivity by reducing mispicks and shorts within the selection process. "Our first goal was to put the warehouse software and voice technology through a rigorous benchmark test to see what it could achieve for us, but at another level, we also wanted to look at how efficient our people could be in utilizing this new technology," said Carl Marks, vice president and CIO, Associated Grocers.

Installed initially in its 530,000-square-foot main distribution center for meat, dairy, perishables, frozen and general merchandise products, Associated Grocers first tested the use of voice technology in the dairy and meat sections. In this initial pilot, it installed 35 Vocollect Talkman(R) voice terminals, which receive real-time selection assignments from OMI's TRICEPS warehouse management system. Associated Grocers-Baton Rouge has OMI's entire supply chain suite installed, including purchasing, invoicing and warehouse management -- enabling complete end-to-end supply chain management of its distribution function with fully integrated real-time interaction among all applications.

Associated Grocers used this test phase to validate the combined solution for speed and accuracy and overall ease of use. "We deliberately set our expectations high for the product -- and so far, we are happy to report that we have attained an overall 63 percent reduction in mis-picks over our previous selection process. We're also pleased to be seeing productivity improvements and a high rate of user acceptance," commented Randy Fletcher, vice president, logistics and supply chain management.

Upon arrival of the remaining voice equipment, Associated Grocers intends to roll out Vocollect's Talkman voice terminals to the remaining sections of the distribution center in late December, with an expected installation of a total of 110 voice terminals for its entire DC selection process. It is expected that Associated Grocers also will extend the use of voice in its inventory control process and other areas where the combined efficiency of hands-free, eyes-free(TM) voice-directed selection can improve labor effectiveness.

"Voice technology is proving to be a breakthrough application for achieving productivity gains of as much as 15 percent. We are pleased that Associated Grocers has taken the next step of integrating voice-directed selection within TRICEPS. Combined with the efficiencies gained using OMI's other applications, Associated Grocers is competitively positioned to be among the most efficient and progressive wholesalers in the business," stated Richard Oksanen, president, OMI International.

About Associated Grocers - Baton Rouge

Associated Grocers, Inc. located in Baton Rouge, Louisiana is a retailer-owned wholesaler with annual sales of almost $500 million. Associated Grocers, Inc. employs over 600 full-time personnel and is a key player in the economy of Louisiana, distributing to over 230 independent retail grocers throughout Louisiana, Mississippi and Texas. Associated Grocer's web site is www.agbr.com.

About Vocollect

Vocollect is a privately held company that has been developing and installing voice-directed systems since the company was founded in 1987. Today, Vocollect is the global leader in wearable computers employing speech synthesis and speech recognition technology for warehousing and industrial applications, with many thousands of Talkman terminals installed throughout North America, Europe and Asia Pacific. Vocollect and its global network of resellers and integrators provide Talkman systems and on-site support for customers in inventory-driven industries, food and retail product distribution, manufacturing and quality control.

Vocollect is headquartered in Pittsburgh and has been recognized for four consecutive years as one of the region's fastest growing technology companies. For more information, please call 412.829.8145 or visit www.vocollect.com.

About OMI International, Inc.

OMI International is a leading developer of a fully integrated supply chain management application, providing end-to-end visibility and optimization to meet the diverse requirements of today's supply chains. With over 18 years of operational and product experience, including over 400 installations worldwide, OMI is a recognized leader across the food, perishables, general merchandise and specialty retail verticals. In North America alone, one or more of OMI's SCM offerings is installed in 60 percent of the top 100 retail grocery organizations and in 46 percent of the wholesale grocery businesses. Founded in 1984, OMI International is privately held with offices in Chicago, Dallas, United Kingdom, France, Spain and South Africa. OMI's web site is www.omiintl.com.