FLEMING COS.:

When Robert Stauth became CEO of Fleming Cos. last October, one of his first acts was to bring in a consulting firm to map out plans for launching an aggressive business process re-engineering program at the nation's second-largest wholesaler.

lso named Fleming's chairman, in addition to being president and CEO, said he began taking a critical look at the company's whole operation and way of doing business about four years ago, when he was still in the field at various of the company's divisions.

"I began to see things that seemed cost-inefficient," he said. "I started making mental notes on what was working well and, if things were not working well, why not."

Now he fully expects re-engineering to affect every department and operating division. The wholesaler has told analysts that as many as 2,000 jobs -- about 9% of Fleming's work force -- will "fall out of the system," he said.

Like May, Stauth knows the company culture also must change. He expects large-scale change to occur within 18 to 30 months, beginning some time this year. To this point, though, the full re-engineering concept had not yet been presented to the majority of Fleming's employees.

"Everyone knows big change is coming, and people know it's the right thing to do. I think each person hopes it won't affect him personally, but until we see the final study, we won't know what to present to our employees. Around the middle of this year, the data-gathering should be completed," he said.

Stauth visits an operating division every week and discusses change with key management representatives, as well as with customers. A number of manufacturers and about 85 retail customers, representing about 30% of Fleming's volume, have been interviewed, Stauth said.

"We want to get their ideas on where the wholesale system creates, or could create, value for them," he said.