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Morrisons supplier payments delayed due to systems upgrade fault

Morrisons supplier payments delayed due to systems upgrade fault

Suppliers complain after glitch block invoice payment

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Companies supplying goods to supermarket chain Morrisons have faced delays to payments, following problems caused by a systems upgrade.

Suppliers speaking to trade publication FoodManufacture.co.uk highlighted significant delays to payments of invoices, which the company has blamed on faults within its IT infrastructure.

One supplier stated it should usually receive payment within a 30 day period, but had so far been waiting for 45 days.

The late payments have further angered suppliers which were recently told by Morrisons they would need to put in place large cost reductions, with promised increases in order volumes failing to materialise.

The nature of Morrisons system problems have not been specified, though the company issued a statement insisting that it is a "temporary" problem.

“We have experienced a temporary issue with our new computer system. But all payments should now be going through to suppliers."

A spokesperson was unable to provide more detail of the system problems at the time of writing after being approached by Computerworld UK, but said that the problem had now been resolved.

In 2010 Morrisons announced that it would begin a £200 million replacement of core systems, including supply chain and product management systems.  

The three year project involved the implementation of a complete Oracle retail suite of merchandising, planning and stores applications, as well as Oracle’s E-Business Suite for financials, HR/payroll and manufacturing.   Oracle’s Siebel platform will also be used for CRM functions.

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