Problems implementing a new computer program at Fonterra's major fresh milk business in Perth have hurt sales.
The Fonterra Brands operation said it had fixed the gremlins for now. But one frustrated distributor of products from the former Peters and Brownes believed the operation's sales had slumped byat least a fifth "across the board" because of the "diabolical" problems.
Fonterra admits the JDE program's installation, before Christmas, stopped product being shipped and invoicing happening "in a timely fashion".
The program is used at Fonterra's other operations across the Tasman.
The distributor - who did not want to be named - said the program failed to recognise the correct level of company stocks.
His business had suffered as a result of the supply problems.
"We haven't actually lost that many customers but the range of products that they purchase from us has dropped."
That had naturally led to a financial loss for his firm. "There's a lot of people suffering because of it."
Fonterra spokeswoman Kylie Taylor acknowledged JDE "didn't work well" when installed in Perth.
"As a result of the teething problems the system was not operating at full capacity during the pre-Christmas peak period. Customer orders weren't going out, product wasn't going out, invoices were not going out in a timely fashion."
She said it was too early to say how hard the problems had hit Fonterra's Perth business. With business now less busy, IT staff were reporting that orders and invoices were on time.
"The objective now is to make sure that there are no glitches in the system and that it continues to work well even when the orders ... go into a peak period again."
Taylor said compensation for those who had lost business as a result was "not being discussed".
