Kroger 2008 Annual Report Download - page 37

The Kroger Co. Page 36
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 and electronic coupon
upgrades
 Pharmacy systems
 Voice-pick technology for our distribution
centers
 State-of-the-art, industry-leading
automation and warehouse management
systems
 Internet-based inbound freight management
 Customer loyalty and fuel systems
 Expanded handheld & mobile technologies
 New data center & network
implementations
 Store labor forecasting systems
 Supply chain & transportation management
programs
 Manufacturing planning & control systems
 Web-based application focus &
improvement in user interfaces
 More fuel-efficient tractor trailer designs
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.