23rd Nov 2006 14:00
Sainsbury(J) PLC23 November 2006 23 November 2006 SAINSBURY'S LAUNCHES NEW SUPPLIER PAYMENT SYSTEM Today, at its supplier conference, Sainsbury's announced an industry first withthe launch of a new payment management system, designed to make it easier andquicker for suppliers to access account information and gain early payments. All Sainsbury's suppliers will be paid through the new system, called theTrading Finance Platform (Platform). Suppliers will be able to view online theirtrading account with Sainsbury's including invoices, debit notes, remittanceadvices and payment dates, giving them much better visibility of their expectedcash flow. In addition, the Platform can provide suppliers with an important extra benefit.Qualifying suppliers will have the option to be paid early once their invoicesare approved for payment. Early cash settlements will be made by suppliersopting to sell their invoices to Morgan Stanley, via the new system, at afinancing rate linked to Sainsbury's credit ratings. Mike Coupe, Sainsbury's Trading Director, said, "This is a fundamentally new wayof managing the financial relationship we have with our suppliers. The systemprovides additional benefits giving suppliers the information they need tobetter manage their financial flows. They can also use the system to leverageSainsbury's borrowing power if they opt for early payment." Suppliers will be invited to participate in a trial of the Platform to see atfirst hand the benefits that visibility, reporting and accelerated payments canhave on their operations. Initial development and deployment costs will be borneby Sainsbury's. Supplier registration for the platform will commence in early 2007, withoperation of the system planned for the start of Sainsbury's 2007/08 financialyears. Sainsbury's Trading Finance Platform has been developed in partnership withPrimeRevenue, who will provide the IT platform, and Morgan Stanley who willprovide the financing. Ellen Brunsberg, Managing Director at Morgan Stanley, added: "We are pleased tobe bringing our capital markets experience to bear as part of this newinnovative finance solution for suppliers. Our involvement with PrimeRevenue inthis and other programmes that are active in this country, in the United Statesand on the Continent, reflect the growing demand for this type of solution ascompanies are focused on creating new efficiencies in their supply chain." Joe Juliano, CEO of PrimeRevenue said that "Companies such as Sainsbury's aretaking advantage of leading technology in this powerful new area and we foreseegreat results for this programme to the benefit of Sainsbury's and itssuppliers. Financial flows in supply chains today are only now getting theattention they deserve, and there is plenty of value to be gained by allparticipants in this deployment. We look forward to working with Sainsbury'sand their suppliers." - Ends - Notes Certain statements made in this announcement are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results to differ materiallyfrom any expected future events or results referred to in these forward lookingstatements. Enquiries: Investor Relations Media Lynda Ashton Pip Wood +44 (0) 20 7695 7162 +44 (0) 20 7695 6127 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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