Harris Teeter 2000 Annual Report Download - page 13

8Ruddick Corporation and Subsidiaries 2000 Annual Report
control have been reviewed and evaluated. Better merchandising
techniques for category management continue to be identified
and implemented in order to help managers optimize selection,
mix and placement in each department.
American & Efird: Consolidation and Modernization
Despite comparatively flat sales and the competitive environ-
ment, A&E reported annual operating profit only slightly lower
than fiscal 1999. Consolidation from three to two dyeing and fin-
ishing facilities in North Carolina during fiscal 1999 laid the
groundwork for the realization of cost savings and a higher level of
overhead absorption in these domestic finishing plants. We also
continued our service center optimization plan in the U.S.
by reducing square footage and consolidating facilities where
appropriate. Another focus for A&E was continuing international
standardization and modernization, including the installation of
new high-speed winders in the Dominican Republic, Costa Rica
and Hong Kong.As best practices are implemented in our overseas
facilities and as the volume in these facilities continues to grow, we
expect to realize even greater quality improvements and reduction
in total conversion costs.
International Facilities
More customers are shifting manufacturing and sourcing
out of the United States, and A&E is committed to meeting
the changing needs of our customer base. At year end, A&E
had broken ground on a new dyeing and finishing facility in
southern China which will allow us to better and more effi-
ciently serve our customer base in that region. We have also
expanded our presence internationally with a start-up operation
in Poland and joint ventures in Mauritius and Sri Lanka. As we
continue our international expansion, we are establishing consis-
tent inventory management techniques that have been proven
successful in the United States at A&E subsidiaries throughout
the world in order to improve service to our customers and
optimize our inventory levels.
A&E dye house technology manager,
Malcolm Mize, monitors the mixing
operation of a micro-powder system
that accurately weighs, mixes and
disburses small quantities of dye
for greater color consistency.
Progressive ideas
for controlling costs