Sainsbury’s is rolling out new software within its supply
chain, which will alert both the supermarket chain and its
suppliers when a potential problem arises and will suggest a
management process to help resolve the issue.The move forms
part of the retailer’s wide ranging “programme of re-platforming”
which it hopes will cut operational costs boosting margins in the
cut-throat grocery retailing market.
The Alerts and
Resolution Management software, which was jointly specified by
Sainsbury’s and a group of key suppliers and developed by software
firm Eqos and consultancy Accenture, will eventually be used by all
of the retailer’s 2,000 suppliers.
The software,
which is based on Microsoft .Net technology, will improve supplier
relations and efficiency, said Diane Carter, supply chain
operations director at Sainsbury’s.
“We believe this
new investment will help us work with them more effectively,
irrespective of their size, and enable us to be more responsive to
customer demand through jointly identifying problems earlier and
being able to proactively manage issues through to resolution,” she
said.
The software will
manage the progress and performance of all products, not just the
more problematic categories such as new products and promotions,
Carter said. Product performance data will be integrated with
exception reports and alerts flagging up anomalies, which depending
on the need and scale, will be managed either as a collaborative or
an informational alert, she said.
Suppliers will
also be able to download information on a range of performance
metrics including their sales, stock levels and range, Carter
added.
The Sainsbury’s
implementation reflects the increasing trend towards collaboration
between retailers and their suppliers, said Chris Tyas, supply
chain director at confectionary manufacturer Nestle.
"We have achieved a lot through collaborative working in recent
years, with significant benefits to both parties,” he said. “In
particular, we have seen improved availability, better sales and
better stock management leading to fresher product for the consumer
and less stock write downs.”