Lloyds TSB is mid-way through a major SAP e-procurement roll-out, aimed at enabling staff to buy goods and services for the firm more efficiently.
The bank, which is currently engaged in the rescue takeover of HBOS, said the three year roll-out, due for completion next year, will dramatically speed up procurement and give buyers the information they need.
Under the programme, it also wants to tie in the e-procurement platform directly with its finance, human resources and business intelligence systems.
Mark Swyny, procurement enablement director at the bank, told visitors at the London conference of the SAP World Tour: “We are dramatically improving our spending, our ease of complying with regulations, and the visibility of our procurement.”
Lloyds TSB spends over £2 billion each year with external suppliers, and said it had been difficult to monitor this expenditure using its legacy systems, which it did not name.
Last year, it rolled out SAP supplier relationship management over a six month period, now in use by 22,000 of its staff who have placed 500,000 purchase orders. It rebranded the software [email protected] for its own staff.
This year, it has been installing SAP eSourcing. In 2009, under the final phase of the main programme, it will work towards direct integration of procurement with its finance systems, calling this i-spend.
The company will have a single repository of procurement information, Swyny explained, with a history of each supplier instantly available to buyers before they make their electronic orders. Under the system, managers are notified of the orders and make an approval decision.