In four pages H.E. Butts is subjected to a CBA and then the logistics and transportation industry is also applied to a cost benefit analysis as well. One source is cited in the bibliography.
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perspective for most business managers. In its most basic sense, CBA places of value on a specific course of action, then subtracts the costs from it. Costs can
either be one-time or ongoing. One such company that has had success in using cost-benefit analysis for its technology investment has been The
H.E. Butt Grocery Company (HEB). HEB has been written up in many publications (such as the Harvard Business Review) because it seems to get so many things in the
business world right. For our purposes, we will examine Michael Garrys article "HEB: The Tech Leader?" Which was published in the May, 1996 edition of the Progressive Grocer.
This article was ideal for many reasons -- first, it focuses on CBA as it pertains to technology, and part of HEBs technology
investment includes electronic logistics. Second, HEB, a privately owned company, has always been known for its commitment to customer service, and solicits customer feedback to help management make appropriate
decisions. In fact, HEBs management is doing everything it can to be the leader in both customer service and employee relations (Garry, 1996).
The main basis of the article is that HEB has been lauded as the leader in the food industry because of its technological know-how (Garry, 1996). For one thing,
Fully Clingman, who was HEBs president at the time the article was written, assessed the companys logistical chain (ranging from ordering, to warehousing, to shipping) as advanced, while stating that
the stores themselves were antiquated (Garry, 1996). Clingman also stated that while HEBs technology could be considered "state-of-the-art," it was more of a Band-Aid rather than a solution (Garry, 1996).