SAP’s hosted E-Sourcing application is helping Royal Mail meet its three-year goal to knock 300m pounds ($618m) off its procurement costs.
The SAP implementation went live this summer and is being rolled out to 100 procurement staff to improve how they handle the 2.3bn pounds ($4.7bn) worth of annual contracts that pass through the UK company each year. E-Sourcing plays a key role in Royal Mail’s three-year goal to transform the technology and processes supporting procurement, delivering 300m pounds ($619m) of savings by 2009.
Scrapping disparate systems for the common, easy-to-use sourcing application provided by SAP has already brought far more transparency to the whole procurement process and delivered costs savings.
Now we have an integrated, standardized methodology, resulting in up-to-date reporting processes and contracts, said Royal Mail’s senior procurement manager, Steve North.