By Daniel Parker
The U.S. wholesale market seems relatively unconcerned about the much feared and publicized Y2K computer bug that, by January 2000, will have either caused a tumult on world markets, or gone unnoticed. For the better part of this final decade of the millennium, businesses reliant on computers have been preparing to adjust their systems to account for the fact that a year ending in two zeros is not 1900. During this time, this arduous and important adjustment has caused significant headaches for everyone from small businessmen to politicians, created jobs for the full array of computer programmers, and made the heads of non-techies spin with confusion.
With less than five months left until that crucial turning of the date, most large companies have issued statements saying that they are ready. Some have not. Everyone, however, feels they should be prepared for the unexpected.
Diamond Bugs
Wholesale diamond businesses from the one-man dealer operations to the large sightholders rely heavily on computers to ease the workload associated with their livelihoods. Each and every business, to be sure, has researched or at least heard about the potential problems that the millennium bug could cause, and contemplated the position of their company as part of it.
"Most of us that are up on computers have manual backups," said Ronnie Vanderlinden, vice president of Diamex, Inc., in New York. "For the most part, we manufacturers have contemporary computer systems. I don't think it will effect us as much as it will big industry, such as the banking and airline industries. I'm not sure that there was ever a massive problem. I think that it may have been blown out of proportion a bit."
Mitchell F. Rosin, president of The Diamond Man, agrees. "From my standpoint it is not an issue at this point, and I don't see it being a problem for most diamond dealers and most people in the jewelry trade that are not in the highest volume level. The large chains rely much more heavily on computers than the smaller businesses."
"Nowadays, our billing and inventories are computerized, so if those things were to crash it could be a bookkeeping nightmare," continued Rosin. "I would recommend that people backup with an old-fashioned pencil and paper. I think you have to have backup records because, not knowing the possibilities that might occur, things may very well crash, even if only temporarily, but if records get erased you'll be in trouble."
"What will happen I think will be a momentary annoyance, maybe some shipping companies will have problems for a day or two, so people may have problems — also wire transfers could cause a problem. People should probably leave a little window before and after the date to account for problems. But I'm optimistic that it will go smoothly overall."
Shipping Companies
Some people in the industry have raised concern that the armored delivery services and other shipping companies utilized most by diamond companies could have computer difficulties relating to the Y2K bug. These companies have complex computer inventory and tracking systems in cities throughout the world, and thus seem susceptible to computer difficulties.
The following is a statement issued by Federal Express: "As of May 31, 1999, FedEx's compliance efforts for all business critical Non-IT Systems (purchased hardware, software, customized software applications, facilities and equipment and other embedded chip systems) is 98 percent complete and Fed Ex is 99 percent complete with the remediation effort of business critical IT systems. The remaining compliance efforts for Non-IT Systems are being actively addressed for completion well before the millennium. The remaining areas of Non-IT Systems being addressed have minimal customer impact and FedEx has contingency plans in place to help mitigate any negative impact of the non-compliance of such systems."
For approximately two years, Brinks shipping has had a Y2K group set up within the company to ensure that its computers are Y2K compliant. Mike Connoly, program manager of Brinks' Information Services Department, however, refused comment on the group's progress. "On advice from legal counsel we are declining all comments on this matter.
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