Paperless trading gets thumbs up at Glanbia

Glanbia wants to plug 300 suppliers into a new electronic trading system by August in order to boost supply efficiency and reduce invoice disputes.

The system, designed by business integration firm Sterling Commerce, enables raw materials suppliers to log on to Glanbia's new Webtrade platform through a standard browser and see real-time information, from orders to goods receipt notes (GRNs).

Sterling is also working with Heinz and the Tetley Group on similar initiatives.

Under the Glanbia system, purchase orders are sent out electronically and GRNs are generated as soon as items are booked into Glanbia's warehousing. Suppliers can see the GRN as soon as it is created and immediately confirm that price and quantities are correct, type in a reference number and generate an electronic invoice.

Not only does this mean that suppliers get paid more quickly, but discrepancies between purchase orders, GRNs and invoices are picked up immediately, rather than weeks after the goods have moved through the system, said Glanbia's group technology services manager Fergal Wall. "By giving the supplier real-time visibility, they can see straight away if what we've booked into our systems isn't right. Price and quantity issues can be dealt with there and then before the invoice is generated, cutting out disputes further down the line.

"The whole process is completely transparent and 90% of the suppliers using the system would never go back to the old one.

"We've also eliminated reams of paper and been able to move people out of accounts payable and into more value-added functions."