Royal Mail claims to be making big financial savings from an SAP e-procurement platform that was rolled out in the summer.
The organisation, which recently appointed former Diageo chief information officer Robin Dargue as CIO, went live SAP’s e-Sourcing software a few weeks ago and is hoping to save £300m by 2009.
The roll-out of the platform is part of a wider three-year procurement transformation programme at Royal Mail promising process and technology changes. Service provider Deloitte was hired to help with business planning, procurement, change and people management, and technology enablement.
E-sourcing forms a key part of the process and technology workstreams in the wider programme. It is being rolled out across more than 100 staff within the Royal Mail group procurement team, and the organisation said said it was already proving an effective tool in helping to manage the annual expenditure of £2.3bn through the contracting process.
It is the first time the SAP procurement platform has been introduced in Europe, and senior procurement manager Steve North said it meant Royal Mail could now move away from disparate legacy systems. “Now we have an integrated, standardised methodology, resulting in up to date reporting processes and contracts. This delivers true visibility across the entire team and a more efficient way of working, all resulting ultimately in cost savings.”
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