Kroger 2007 Annual Report Download - page 38

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TECHNOLOGY & LOGISTICS
Technology and logistics are very important parts of our business. The
Kroger Co. invests significant capital and expense dollars to ensure that
our information systems and logistics network are operating as efficiently
and cost-effectively as possible. We also know that such investments are
critical in serving our customers better.
Investments during the past few years have included:
Self-checkout technology
In-store wireless improvements
E-commerce upgrades
Pharmacy systems
Voice-pick technology for our distribution
centers
Real-time warehouse management &
automation systems
Internet-based inbound freight
management
Expanded handheld & mobile technologies
New data center & network
implementations
Customer loyalty systems
Supply chain & transportation management
programs
Manufacturing planning & control systems
Web-based application focus &
improvement in user interfaces
All of these investments are producing returns above projected hurdle
rates. In addition, several of these investments – such as self-checkout
technology, loyalty systems, and supply chain management – are
contributing to improvements in Kroger’s “Customer 1st” strategy.
The Kroger Co. Page 38