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Investigating the Impact of the Y2K Problem--Food Industry

Source: www.access.gpo.gov
Topic: Food Industry

Sort Desciption: leagues in allied businesses to be. Y2K prepared. FOOD INDUSTRY. A $25 billion (U.S. $) international. food retailer with chain stores in the ...

Content Inside: I NVESTIGATING THE I MPACT OF THE Y EAR 2000 P ROBLEM S ENATE S PECIAL C OMMITTEE ON THE Y EAR 2000 T ECHNOLOGY P ROBLEM 129 Sears’ business processes. Thus, 82% of their current business part- ners – primarily small businesses – were deemed non-critical. As a tri- age approach to looking at work pri- oritization and resource allocation in addressing potential Y2K problems is necessary, this same approach is being applied by larger business as they assess Y2K related risk associ- ated with their vendors. Once a ven- dor has not passed muster in this context, it is possible it will lose the business relationship permanently resulting in a devastating impact on its business. PHARMACEUTICALS While generally considered to be one of the leaders in the Y2K remediation effort, pharmaceuticals are caught in the classic squeeze of dependency on suppliers and distributors. Be- cause of FDA regulations intended to protect the public, pharmaceutical companies must have a pre- approved ingredient supplier whose product is registered upon arrival for a particular drug product batch. This means that a constant supply source is critical to the drug manufacturing process. On the sales/distribution side, the companies sell 80% of their product through wholesale drug firms, thus requiring minimal direct sales. It is essential for success that both sides of the equation function effectively through this Y2K window of risk. The pharmaceutical compa- nies are encouraging their col- leagues in allied businesses to be Y2K prepared. FOOD INDUSTRY A $25 billion (U.S. $) international food retailer with chain stores in the U.S., Europe, Latin America, and Asia described a Y2K experiment that was conducted in one of its stores. It set the date for the store’s computers to Y2K. The effect was “the computers shut down the store in 5 minutes. Everything was shut down. The security systems, the temperature controls, the safes, the front end. Everything.” The Food ...

investigating the impact of the y2k problem food industry

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