WASHINGTON -- A survey of Y2K readiness and contingency plans conducted by the Grocery Manufacturers of America here and Ernst & Young LLP shows almost 90% of respondents have completed the final stage in identifying, fixing and testing areas affected by Y2K.
ough Jan. 1, 2000 and beyond. Almost 97% say they are confident or very confident their contingency plans will successfully prepare them to thwart any Y2K-related issues with minimal effect on their businesses.
"Consumers should feel at ease that the food industry will operate normally in the weeks before and after the Year 2000 conversion," said the GMA's chief executive officer and president, C. Manly Molpus. "Our survey results confirm that food and beverage companies have gone beyond identifying and fixing Y2K problems. The vast majority have already tested their systems to look for glitches and are focusing efforts on contingency planning, one of the food-industry's core strengths."
Respondents report budgeting an average of approximately $34 million for their Y2K conversion efforts and have spent an average of $27.5 million to date.
Manufacturers are preparing to meet higher consumer demand, according to Lisa A. McCue, GMA spokeswoman. "Half of our respondents are building inventories of finished goods. We're also working to get the message out to consumers that we will be prepared. Even without the Y2K issue, this is the busiest time of the year for food and beverage and consumer product manufacturers," she noted.
Other key findings from the survey:
More than 95% of respondents said they have a contingency-planning program in place to help handle potential disruptions.
94% are confident or very confident about the Y2K readiness of retailers.
92% have completed the inventory and prioritization phases of contingency planning. * 89% have contingency plans for critical business processes, internal systems and trading partner failures.
70% plan to modify production schedules at one or more manufacturing facilities (i.e. temporary shutdowns).
Information reported in the survey was collected in June 1999 from 77 of GMA's 128 member companies, which account for approximately 90% of the food, beverages and consumer products sold in U.S. supermarkets.
