Attention Shoppers (AND grocery store owners/managers)

greenspun.com : LUSENET : Lakes Area 2000 : One Thread

(In the taking it seriously and seeming to be doing a pretty good job department, here's what the head of one of the world's largest food store chains had to say to congress about y2k. Your store or business may not be as big, but can you say the same? Have you done everything you need to do to make it so Januray 1st, 2000, will be just another routine shopping day?)

United States Senate Special Committee on the Year 2000 Technology Problem

Hearing: The Food Industry and Y2K:

Starving for Attention?
Michael S. Heschel

Executive Vice President

Information Systems & Services

The Kroger, CO.....

Kroger is headquartered in Cincinnati, Ohio, and is a leading US food retailer with operations in 31 states, including 1,400 food stores, 34 manufacturing plants and 797 convenience stores. We also operate more than 1,000 full-service pharmacies in our stores. Kroger employs approximately 212,000 people. Sales for 1998 exceeded $28 billion.

For the record, it should be noted that Kroger is in the process of merging with Fred Meyer, Inc., a food retailing company based in Portland, Oregon. The merger is pending approval by shareholders of both companies and government regulatory agencies. The following information applies only to Kroger and does not address the Year 2000 compliance efforts of Fred Meyer, Inc.

...

In addition to systematically achieving compliance of our systems and technologies and monitoring those of our suppliers, we believe Kroger is prepared to deal with problems that may arise during the Year 2000 transition. Our Company has nearly 116 years of experience responding to the needs of customers on a daily basis as well as in emergency circumstances such as floods, tornadoes, and hurricanes. Those situations have reinforced our appreciation of the unique and important role the retail food industry plays in the lives of every citizen.

The food industry deals in products that are produced, distributed, purchased and consumed rapidly. Essentials like batteries, bandages, and diapers, in addition to groceries and medicines, are needed every day by millions of consumers. As a consequence, our operations are predicated upon the efficient movement of goods from factory to warehouse to the store shelf in a continuous cycle of procurement, distribution, sale and replenishment.

At any given moment, Kroger typically has about 35-36 days of inventory in our distribution centers and stores. In some categories such as prescription drugs, we have up to three months of inventory in the system. Also in our system are products we make in our manufacturing plants, such as bread, milk, and a variety of grocery products.

These levels of inventory, which we call "safety stock, D insure that Kroger customers can obtain the products they want when they want them. Safety stock also provides a supply cushion in times of unusual demand surges such as severe weather.

Again, in summary, we are monitoring inventory levels. We will have safety stock available. We believe, therefore, unless there is widespread hoarding or excessive stockpiling, 1/1/2000 will be a routine shopping day.

http://www.senate.gov/~y2k/hearings/030299/heschel.html

-- Bill (billdale@lakesnet.net), March 23, 1999


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