Y2K Crunch Time Is Here for Retailers [Anonymized-proxy7]
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So some are getting more aggressive in seeking answers about the year 2000 compliance of the supply chain that merchandise will move through. <p> <p>At the National Retail Federation conference here last week, retailers said the best they can do is find the most vital links and target them heavily. But questions about the supply chain's readiness remain. <p> <p>"If you want to do business with us, you've got to demonstrate in some tangible way that you are going to be ready," said Barbara McIntyre, director of administration for year 2000 conversion at ShopKo Stores Inc. in Green Bay, Wis. ShopKo's efforts to contact suppliers in writing have often yielded only boilerplate responses, she said. <p> <p>Brian Hume, president of Martec International Inc., an Atlanta-based retail consulting firm, said many small but important retail suppliers are going to answer that they are compliant even if they don't know what it means to be ready for the year 2000. <p> <p>Betty Gruber Smith, director of MIS at Guess Inc., a clothier based in Los Angeles, said the company is paying personal calls on suppliers overseas to determine their year 2000 compliance. But the retailer is trying to avoid cutting off well-established relationships with manufacturers that aren't ready. "Quality is a big concern," Smith said, and dropping long-time vendors because of year 2000 concerns would mean resorting to less familiar vendors. <p> <p>As a contingency plan in its logistics operations, Belk Inc. in Charlotte, N.C., is evaluating United Parcel Service of America Inc. and FDX Corp.'s RPS as carriers for small packages, said Michael Rescigno, the department store chain's transportation services manager. But other firms are doing the same and also want to be at the front of the line, he said. <p> <p>Some retailers have found reason to be cautiously optimistic. "The nightmare of any logistics executive is to wake up on Jan. 2 and find out that you cannot move merchandise," said Dennis Smith, senior vice president of logistics at Dayton Hudson Corp.'s Mervyn's California department store chain. 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