IT upgrade costs laundry firm Stalbridge £4m to fix

30 November 2006 by
IT upgrade costs laundry firm Stalbridge £4m to fix

Laundry and linen company Stalbridge has played down concerns that a bungled IT upgrade which cost it £4m to rectify has damaged client relationships.

Fears were raised last week when the Johnson Services-owned group issued a profit warning and said the overhaul of its invoicing system had cost £1.5m to fix while £2.5m of payments had been written off.

The news coincided with the departure of group chief executive Stuart Graham - although the company said this was a coincidence.

Stalbridge managing director Mike Hill admitted there had been problems. "We've got a fabulous reputation but there have been some difficulties that we've had to work through with some caterers," he said.

But Terry Cook, purchasing consultant for contract caterer Charlton House, said invoicing and order problems had caused service levels to "drop drastically".

"Although there is light at the end of the tunnel now, we've looked at alternative suppliers because they were very slow to respond," he added.

Diana Spellman, managing director of purchasing consultancy Partners in Purchasing, said: "We spent an inordinate amount of time and money resolving issues with Stalbridge. Companies really need to provide increasingly efficient services as the world moves towards e-procurement."

By Tom Bill

E-mail your comments to Tom Bill]( upgrade costs laundry firm Stalbridge £4m to fix) here.

Get your copy of Caterer and Hotelkeeper every week -

[Sudoku]( "A new puzzle every day!") Join the craze and play Sudoku online!
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking