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According to Pamida's CIO Dan Nicklen, the reason the warehouse management software was not updated was because "the software had been working fine under the old distribution system." As a result of the inadequate warehouse management information system, bottlenecks occurred, earnings declined in the first nine months of 2001, and ShopKo lost $6.7 million in overall revenue. As a result of the product supply shortage for the 2000 holiday season, estimated sales losses were $5 million, and lawsuits were filed by shareholders. It is obvious that Pamida's current technology did not support the transition from a flow-through facility to a full-service distribution center...
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