KROGER LOOKS TO IMPROVE SUPPLY CHAIN MANAGEMENT

PETER PERROTTA

CINCINNATI -- Kroger Co. here said it will be implementing a suite of Web-enabled software applications from Retek, Minneapolis, to help it better manage supply chain replenishment efforts.

"After an extensive review of the products and capabilities available, we selected Retek to provide us with the key pieces of information infrastructure to support our supply chain replenishment efforts," said Michael Heschel, executive vice president and chief information officer.

Officials from Kroger declined to elaborate further on the software program that will be installed.

However, an industry source close to the negotiations said the installation of the software package will represent a very large undertaking that will be felt in all Kroger supermarkets as well as along all points of the supply chain.

"This is designed to reduce out of stocks," the source said.

Neither Kroger or officials from Retek would say how long it's going to take to implement the new software program throughout the chain.

Kroger, one of the nation's largest food retailers, operates 2,359 supermarkets and department stores in 31 states, 789 convenience stores, 398 fine jewelry stores and 42 food-processing plants.

Kroger operates supermarkets under nearly two dozen banners, including: Kroger, Fred Meyer, Ralphs, Smith's, King Soopers, Dillon, Fry's, City Market, Food 4 Less and Quality Food Centers.