Sainsbury is set to become the first company to use a special internet scheme to improve supply. GlobalNetExchange has announced Sainsbury will implement the GNX Collaborative Planning, Forecasting and Replenishing solution with trading partners Unilever and Kimberly-Clark Europe. The scheme will cover products in the health and beauty, baby care and household categories. Sainsbury group e-commerce director Patrick McHugh said the CPFR system allowed retailers and suppliers to work together more closely. "We collaborate over GNX, making available our inventory levels to suppliers and also our projections about what is going to happen. "The aim is to reduce inventory without stocking out of products." Sainsbury already runs a similar system called SID, Sainsbury Information Direct. But McHugh said the GNX CPFR took it a stage further. "It's a pilot run at the moment. It's a more refined system, but we are trying it out on a limited scale at first to debug the software and make sure it does what we think it can." McHugh said the system could have a big effect on the business. "This is very important stuff. We're talking about inventory reductions and per cent savings in the supply chain, and in this business a per cent or so has a huge impact." GNX uses the internet to connect trading partners across extended retail supply chains and to integrate supply with consumer demand. GNX's equity partners include many of the world's biggest retailers, including Sainsbury, Carrefour and Kroger. {{NEWS }}