Sainsbury's opts for Web-based EDI

NEWS Sainsbury's has taken the first steps in a programme to scrap its traditional EDI (Electronic Data Interchange) systems in favour of Web-based supply chain management. Jerry Bridson, programme manager for supply chain systems, told Silicon.com that 800 small and medium-sized suppliers have already moved to the online application. Where traditional proprietary EDI applications have been too expensive for SMEs to take part, the Web version is proving popular. The move will eventually force the supermarket's larger suppliers to switch systems, even though they have made significant investments in the non-standard EDI systems. "The main issue was the cost, not only from the initial set-up, but from ongoing running," Bridson explained. "We realised that in order to get these small and medium suppliers into electronic commerce, we needed an alternative." He admitted that in the future, the company will not want to run parallel EDI systems for large suppliers. "I think EDI still has a part to play in the organisation," said Bridson. "Certainly our larger suppliers are doing EDI with some of our competitors and we have to recognise that. But I think there is a move generally in the market toward Web-based applications." He added, "Ultimately no company wants to work with parallel systems if they can work with one." You can see the full interview in our Retail Channel (http://www.silicon.com/a36547 )