Hardware retailer profits from computer

ll El EST THING we have ever lJdone," Bill Griffin, manager of Griffin Hardware, says, when asked about computerizing the store. "The benefits outweigh any costs and frustrations. "

The store, owned by Harold Griffin, his dad, has been in existence for 28 years, 18 at the present location of 3501 W. First St., Santa Ana, Ca., in Orange County, home of Disneyland. The previous location was just around the corner.

A large warehouse-type building, the store has 15,000 sq. ft. of selling floor and 5,000 sq. ft. of office mezzanine and warehouse. Stocking building supplies as well as hardware and household items, it has a customer mix of '15Vo homeowner and 25Vo small contractors.

With the area change from rural to urban, the Griffins have worked to keep the store modern and functional. Only the atmosphere is old fashioned with the proprietors and clerks greeting everyone, calling many by name.

'Industry leaders categorize the operation as a prototype of computer use. "The store is an outstanding example of what can be done with electronics. " "Other hardware stores should follow their lead. " These are the comments when Griffin Hardware is mentioned in the trade.

Story at a Glance

Prototype of computer use

. . . helps solve instock problems . . . pinpoints pilferage . . . manages inventory, purchasing, sales analysis, pricing, accounting . does more business with same staff.

Their interest in the computer began in 1975 when the elder Griffin observed a demonstration at the National Hardware Association convention in San Diego, Ca. He and his son discussed the amazing machine and investigated ways of applying the functions to their operation.

With 25,000 different items to keep track of, they felt a computer system would better their stock position and facilitate inventory control. Back in the mid '70s there were scarcely any hardware stores in the country operating with a computer and few companies qualified to install a system bompatiSle with hardware.

As pioneers in hardware automation, the Griffins worked with a Southern California firm, Basic Time, El Segundo, to put their paint department into a computer system. Gradually they worked dePartment after department into the system, adapting and reprograming as needed. The entire store has been on computer since 1977 with point of sale terminal (cash register), inventory management, pnclng, purcnaslng, recelvlng, sales analysis, and all accounting functions including payroll.

At present 85Vo of the merchandise in the store hasanSKU(stock keeping unit) assigned to it. They are aiming for a XJ-95Vo figure in the next Year although some small items such as nuts and bolts selling individually will never be feasible on the computer, according to Bill Griffin. Latest addition put into service last month is lastin-first-out GIFO) inventory control.

The fint step in the system is the I point of sale terminal which issues a { ieceipt for the customer and records i on cassette tape the usual cash. or i charge receipt' information plus the i identifying SKU number of the item. I The cashier begins this action bY I punching in the six digit SKU Plus i the price. Bill Griffin looks ahead to i a time when this information will be '1 provided by a scanner similar to the i controversial one now in use in some I food markets. !

The next step is to transfer the information electronically from the tape to a permanent disc which resembles an old time 78 rpm phonograph record. The computer has sensorY devices which enable it to recover the information from the disc and display it on a screen or through the printer issue a printout for further use according to the program.

In addition to providing information for inventory management, purchasing, and sales analysis, the system

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