# Presentation: 354535

## Michigan WIC: Learning from the Experience

- Dave Prus
- Manager - EPS/POS Development
- Spartan Stores, Inc.
- Grand Rapids, Michigan
- _[dave_prus@spartanstores.com](mailto:dave_prus@spartanstores.com)__ (616-878-2032)_
- Prepared by: Mary Dechow and Sandy Walraven (Spartan)

## The Plus Side:WIC EBT

- We are getting paid for WIC within 2-3 days of the transaction. Prior to EBT, we were as much as 45 days out.
- We have fewer rejections, because the element of human error is gone (e.g - taking an out-of-date coupon, not getting a signature). And the entire payment is no longer denied if the price charged is higher than they price they set (instead they pay their set price).
- Though EBT requires double scanning, our clerks say it is faster than dealing with paper vouchers.

## The Issues:Michigan’s timeline

- We were advised in November 2007 that Michigan would start rolling-out WIC EBT statewide in January 2008.
- It was not enough time to react, especially over the holidays. They did not take into account the amount of work retailers needed to do to prepare.
- Michigan will have the roll-out completed by the end of November.

## The Issues:Stand-Beside System

- Only one Michigan retailer – Meijer – currently has an integrated system.
- Began with JP Morgan as WIC processor.
- Michigan switched to ACS and Meijer had to do additional development.
- Began new roll-out this past January.
- Wal-Mart is working on their integration. Kroger is reportedly a year out. We hope to have an integrated system by November 2008.

## The Issues:Stand-Beside System

- To our knowledge, there is no progress being made on integrating any other front-end system besides IBM (Meijer integrated their NCR system).
- We have begun work on our integrated system for our IBM Supermarket POS Application.
- We will operate the integrated solution in a mixed-basket environment (accepting EBT, WIC, FSA, Credit, and Debit in the same transaction).
- Our cost estimate for the 9 month turn-around is $500,000, plus the new added costs to handle the fruits and vegetables CVV vouchers, which has not been budgeted to date.

## The Issues:Stand-Beside System

- Under their contract with ACS, Michigan provided equipment for all stores.
- Benefit reader for Customer Service Desk
- Network router if over 1 terminal, so price changes only need to be made at one location
- Formula for number of free terminals
- Under $70,000 in annual transactions = 1
- $70,000-$200,000 in annual transactions = 2
- $200,000 - $300,000 in annual transactions = 3
- Over $300,000 in annual transactions = 4
- (We have one store with 6 terminals).

## The Issues:Stand-Beside System

- The WIC stand-beside system at the lane has a separate hand scanner and key pad.
- The cashier has to double scan all items (once through our POS system and once through the WIC system).
- WIC clients can check out only at designated lanes. Need to be manned lanes, not self checkout.
- WIC clients can check their benefits (prescription) at the special terminal at the Customer Service Desk. The receipt that is printed lists what they still have available on their card.

## Our Issues:Store Security

- We did not want ACS (the processor) or their private contractors (Mustang) pulling wire in our corporate stores, so we opted to install network switches at the lanes. The WIC equipment can then be easily attached to the network.
- Switches were $550 each -- an unbudgeted item with anywhere from 2 - 6 per store needed for the WIC terminals at 80+ stores -- plus the cost of installation. Total estimated at $150,000 – receiving a $2,000/Month credit for communications to ACS that were not required.

## Our Issues:Store Security

- Our installation crews were barely ahead of the ACS installers.
- Pulling new cable to each stand-beside terminal was an option we decided not to pursue.

## Our Issues:Store Security

- Every time Mustang comes to a corporate store to set up equipment, we need someone back at corporate to open the port.
- Equipment installation can be any time of the day or night. (We finally had to insist on 8-5 Monday through Friday because our folks were not available at other times. Even with this request, it’s been difficult at times for both of us, as we only have 2 people who, for security reasons, can open the ports and they are often involved with other projects when Mustang is at the stores.

## Our Issues:Pricing and Balancing

- Each store must maintain the pricing information in the WIC system.
- Every time a price changes, a store price coordinator has to check to see if it is a WIC item and make the change in the WIC system in addition to our POS
- Ad items, vendor price changes, DSD price changes, Temporary markdowns, in-store specials, etc.

## Our Issues:Pricing and Balancing

- The person back at HQ who balances the books is having real issues determining what has or has not been paid. Pricing is:
- The price we charge on the POS
- The price we have in the WIC EBT system (supposedly the same price as our POS, but mistakes happen).
- The price that WIC pays us (which is based on surveys).

## Our Issues:The Item File

- We had a difficult time getting an item file from the state that included of all UPC's that are approved for WIC. We need a full file to put the proper flags on all items we warehouse.
- Their file is by price zone. If an item has not been reviewed for a price zone, it is not in the file.

## Our Issues:Item Issues

- WIC depends on retailers to notify them of new items.
- If a customer comes to the checkout with a WIC item and it doesn't scan on their system, we can’t sell the item. The store reports it to corporate and we fax a request to WIC to have it added. If it’s approved, the item is added through a 24 – 48 hour feed from WIC (ACS). Then all the stores need to be notified to add pricing info the next day.
- Vendors add to the burden, as they will change the look of a box (like cereal) and give it a new UPC. That UPC should be WIC-able, but won't scan.

## WIC Fruits & Vegetables: Cash Value Vouchers

- There is talk of requiring that we provide WIC UPC information on the actual CVV items the customer purchased..
- How would a store decide which items to count for WIC, and why would that information be at all necessary?
- If the person has an $8 voucher and spends $4 on a cantaloupe, $2.50 on corn on the cob, $1.45 on grapes, $1.05 on bananas, $3 on frozen green beans, $1.49 on two cans of beets, and $.75 on a green pepper  -- which items do we count as WIC CVV?

## WIC Fruits & Vegetables: Cash Value Vouchers

- CVV support
- There are thousands of items that would require maintenance on the stand-beside WIC system by our Pricing Coordinators in each store, and State WIC agencies.
- CVV in a stand-beside environment is going to add excessive administrative overhead because of the shear number of price changes that would be applied to all these items on a regular basis. An automated Batch Apply on the WIC terminals is not supported.
- An integrated WIC EBT solution allows the corporate office to control the WIC status for all items at all stores, which will be transparent to the stores.

## WIC EBT:Wrap-up

- Questions?
- Thank You..........