Kmart to Restructure Supply Chain Operations

Kmart Corporation on Thursday announced that it will restructure certain aspects of its overall operations. The focus of this restructuring program will be on the supply chain infrastructure, including the reconfiguration of Kmart's distribution center network and implementation of new operating software across its supply chain.

"Reconfiguration of the distribution center network entails the replacement of two aging distribution centers with two state-of-the-art facilities, which will improve productivity and the flow of goods to nearly half of our stores," said Chuck Conaway, Chairman and CEO of Kmart Corporation. "Implementation of the program will begin this month. In addition, the distribution of slower-moving goods will be centralized to one newly-designated center to improve efficiency across all other centers and facilitate the expansion of our BlueLight Always campaign."

New operating software will be implemented across Kmart's supply chain beginning this quarter. Completion of the implementation is expected by the end of the second quarter of 2002.
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