Sainsbury's has enlisted Kewill Systems to provide a supply chain management solution to link up its Goods Not for Resale (GNFR) suppliers.
GNFR includes anything that the retailer pays for, but does not sell on to customers - from pencils to new stores - and amounts to well in excess of£1billion a year.
The new contract is built on an existing relationship for Kewill to provide supply chain management for Sainsbury's Goods For Resale (GFR) lines.
The company will use the system - Kewill Trade - to exchange orders and invoices with its GNFR suppliers electronically, thereby streamlining communications. The aim is for Kewill Trade to automate ordering with smaller suppliers with the minimum of disruption to its systems.
Sainsbury's e-procurement programme manager Chris Stockdale said: 'The system fitted well with our smaller suppliers who couldn't afford the investment for EDI. Anyone with a decent PC and an Internet connection can use the system. That makes it very simple.'
The contract also supports the retailer's extranet strategy by making orders available online for suppliers to view. The move will see the amount of electronic orders and invoices increase from 35 per cent to 95 per cent.
Stockdale said: 'Sainsbury's has experienced significant cost savings in its GFR supply chain through the use of Kewill Trade; through significant reduction in the amount of paper being sent and received. We are now extending these savings to the GNFR operation.'
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