Kmart to restructure supply operations

Troy, MI — Kmart Corp. has announced that it will begin restructuring certain aspects of its overall operations, focusing on the supply chain infrastructure, which will include 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. "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, and it is expected to be completed by the end of the second quarter 2002.

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