TRONDOS
New rotation and time & attendance system rationalises TRONDOS’ store operations
- We have very good experience with ProMark, our new rotation and time registration system. The system handles varying rotations and shift arrangements very efficiently and transfers data to the payroll system so that the staff gets the correct pay, sats System Manager Terje Skjelvik of TRONDOS (Coop Trondheim and Environs).
The operations keep employees occupied with variable rotations and shift arrangements, from early morning to late evening, on both weekdays and holidays. “We were looking for a system that could satisfactorily handle this variety. Mark Information was the only system integrator who had all the components built in,” says system manager Terje Skjelvik at TRONDOS (Coop Trondheim and Omegn BA). He adds that competing system integrators only operate with piecemeal and partial solutions. “They were poorly suited for our needs,” he emphasizes.
Cumbersome and resource-demanding
In 2002, TRONDOS underwent an evaluation of their routines for time & attendance, and wage calculations. “The old payroll system had a lot of deficiencies, with respect to our current needs,” Skjelvik says. He adds that the company operates with different employment arrangements. One third are permanently employed, another third are part-time, and one third are extra-help. “We were using things like multiple time schedules made in Excel in our stores, which generated many sources of error. There were also different practices in how the stores were paying their employees.”
Specifications
Specifications were drawn up in the spring of 2002 and submitted to 15 different suppliers of systems. What we wanted was to contract a supplier who would be responsible for implementing and starting up a common time & attendance and payroll system. ProMark and Vivaldi were chosen. “In the autumn of 2002, the system suppliers agreed to present a common tailored solution for us,” says Skjelvik.
The operational requirements are important
TRONDOS had clear opinions on how the new time & attendance and payroll system should work. “There were small internal work groups who evaluated each department’s needs,” says Skjelvik who feels it is important to have clear ideas in advance about how the system should work.
Handles all Time & Attendance
The main reason for choosing ProMark from Mark information was that the system could meet the requirements for time & attendance at all TRONDOS stores. The grocery branch operates with a wage supplement for unsocial hours. This supplement applies once you have worked more than 12 hours in a week, regardless of which department one works for.
And Skjelvik says: “Unlike the competing systems, ProMark incorporates this (supplement rule) and computes the correct supplement as part of the employee’s wage.”
“We have between 800 and 900 rotations registered in the system, spread over every day of the week and all public holidays. This says a bit about the complexity and variety in our organisation.”
Rationalisation effect
TRONDOS has saved an entire man-labour year since putting the IT-system into operation at the beginning of 2003 until today. “Our payroll is now being paid out by only one employee,” says Skjelvik. “There are only a few Norwegian firms that can manage this size of operation with so few resources. If we add in what we have saved in reports, rotation planning and eliminating sources of error, the savings are large.”
Wage costs
TRONDOS is a major operation in the Trøndelag Counties established in January 1970; 1800 employees are on the payroll. The company is a consumer cooperative (co-operative society), owned by 77,760 members. “Wages represent our largest expense. Therefore, we depend on a time & attendance and payroll system that optimises resource use,” says Skjelvik. “We also want our 1800 employees securely receiving the correct pay and on time.”
TRONDOS carries on trade in several branches: groceries, building products and hardware, electrical goods, sporting goods, apparel, footwear, furniture, interior furnishes and fuels. The business owns 2 Coops Obs!, 1 Bygg og Bo, 22 Coop Prix, 5 Coop Mega and 2 S-shops.
Independent unit
TRONDOS is one of the most profitable consumer co-operatives in COOP Norway, and last year had the second highest sales as well as the highest earnings. “As an independent entity, we are free to choose and run our IT systems. This is also true for the other co-ops,” Skjelvik says. He adds that Coop Norge, however, does have a specially designed system for its cash register systems. “Many cooperatives in the Coop group are envious of our system. They see that we have a much better utilization of resources, something that improves our profits.”
Changeover to using IT systems
The conversion to a computerized tool in the individual stores required intensive user training. “Mark Information has contributed to an increased understanding for computers in general and time & attendance in particular. Within the course of 3 to 4 months, raw beginners to PC use were able to tackle relatively advanced IT-systems.”
Complete control
“Our store managers say that they have received a system that provides complete control of time & attendance and a just payroll. They need less time to register pay and to verify the time lists. “They can now concentrate on our customers and the inventory in greater degree. It makes the workday more efficient and leads to greater earnings,” thinks Skjelvik. “The change-over from manual routines to IT-based store control has been virtually painless.”
Just-in-time deliveries
TRONDOS has a significant logistics operation, in which the demand for just-in-time deliveries is significant. To the question of how much ProMark affects this process, Skjelvik replies: “It has given us more efficient operations and logistics in our stores. When goods arrive at the stores, the system recognises whether there are sufficient resources to receive the shipment. In addition, the system tells us from hour to hour whether we have the right number of employees on hand in the store to handle the day’s tasks. ProMark backs up the logistics processes and consequently customer flow.”
Cost control
Cost control is especially important in the grocery branch. “Our most important competitive parameter is to always offer the customers the lowest possible prices. We see that low-price chains based in the Continent are in the process of establishing themselves in Norway. These actors have an extreme focus on costs, efficiency and profitability. An efficient time & attendance and payroll system is one of the ways to take them on in competition,” concludes Skjelvik.
“Many cooperatives in the Coop group are envious of our system. They see that we have a much better utilization of resources, something that improves our profits.”
Published February 2, 2007
