Schneider Takes Leadership Role In Y2K Readiness
16 December 1998
Schneider Takes Leadership Role In Y2K Readiness for the Transportation and Logistics Industry; Chief Technology Officer Testifies Before US Senate Committee on Y2K
GREEN BAY, Wis.--Dec. 15, 1998--The U.S. Senate Special Committee on Y2K Technology Problems recently invited testimony from Chris Lofgren, chief technology officer at Schneider National, Inc., regarding Year 2000 (Y2K) readiness within the transportation and logistics industry. Lofgren, the sole representative from the truckload carrier industry, represented one of the eight areas on which the hearing focused."As the largest truckload motor carrier in North America, and one of the largest providers of logistics services in North America and Europe, we feel it is our responsibility to not only lead the industry in Y2K readiness, but also to assist the United States government in its pursuit of Y2K compliance for all aspects of the national economy," said Lofgren. Schneider National, Inc. is the parent company of several motor carriers and of Schneider Logistics, Inc., an industry leader in providing complete logistics solutions.
The Y2K technology challenge extends throughout all aspects of the
transportation and logistics industry. For example:
-- EDI (Electronic Data Interchange) is the electronic communication
network which processes purchase orders, inventory control and
shipping documents between manufacturers and their customers
worldwide. These systems need to be upgraded to ensure products
continue to move from manufacturer to customer in the new
millennium.
-- Embedded computer chips control a truck's engine control units,
anti-lock braking systems, electronic dashboards, monitoring
equipment, and communications equipment, and must be examined to
assure operational ability after January 1 of 2000.
-- Other areas that are vital to the function of businesses also
must be surveyed for compliance. These include electricity, gas
and water utilities; telephone service providers; financial
institutions; facility providers such as security systems, fire
suppression systems, lighting control systems, and elevators; and
many others.
Schneider initiated its own Y2K compliance program in September of 1995, and has so far invested over 25,000 hours in scanning its entire code base, making necessary repairs and testing applications in a simulated Y2K environment to ensure that both Schneider National and Schneider Logistics are in working order before the new millennium. An additional 7,000 hours will be necessary in the early part of 1999 to complete the program. Schneider expects to spend over $5 million on its Y2K project.
"This is a substantial amount of time and money for a company to absorb, considering there is no direct additional business benefit," said Larry Sur, president of Schneider Logistics, Inc. "Nevertheless, Schneider's goal is to become Y2K compliant in every way possible in order to provide uninterrupted service to our customers now and beyond the Year 2000."
Due to the nature of the transportation industry, Schneider is contacting over 1500 of its vendors and suppliers, truck and trailer manufacturers, financial institutions, facility providers, customers and many others to ensure that such businesses are addressing the Y2K challenge and are dealing with it in a timely and accurate manner.
"Schneider will continue to work with vendors, suppliers and customers until we are confident that our supply chain is a strong network, and is ready for day-one of the Year 2000," said Sur. "We will also continue to provide leadership and expertise to government and industry groups that are working toward their own Y2K solutions."
Schneider Logistics, Inc. is a wholly-owned subsidiary of Schneider National, Inc., one of North America's largest transportation and logistics companies, with clients throughout North America and Europe. Schneider National, which is headquartered in Green Bay, Wis., is privately held and has annual sales in excess of $2.5 billion. Schneider Logistics' website can be found at http://www.schneiderlogistics.com.
This is a Year 2000 Readiness Disclosure as defined in Section 3(9) of the Year 2000 Information and Readiness Disclosure Act.