E-procurement brings first class results...
By Tim Ferguson
Published: 22 May 2008 13:04 GMT
Royal Mail is on course to save £300m over three years through efficiencies created by its SAP-based procurement transformation programme.
Central to the project is SAP supplier relationship management (SRM) software and its E-Procurement module.
Exclusive column: The Naked CIO
See what this CIO really thinks…
The Naked CIO: Shadow of the job axe
The Naked CIO: Identity crisis
The Naked CIO: Innovation - same old story![]()
Royal Mail director of performance and transformation, Daniel Cameron, explained to silicon.com that the SAP software has helped the organisation source items much more efficiently and get better deals.
Cameron's group put together the business case for the project around two years ago with the aim of making the Royal Mail's procurement department one of the top three in Western Europe.
Now 18 months into the project, Cameron is confident these ambitious savings targets can still be achieved. He said: "We've been more successful than we expected."
Around half of the savings are expected to come through a reduction on operational expenditure with the rest coming from lower capital expenditure.
The rollout of the e-procurement technology has seen the introduction of small chunks, each of which has been well received, according to Cameron. "As a result we've had a phenomenal user adoption," he said.
Royal Mail already runs its business applications on an SAP backbone and so the decision to use technology from the German business software giant for the procurement project was an obvious one.
Cameron said: "The core is SAP but where we've needed to bolt stuff on the side, we have done. We say unless there's a good reason not to, use SAP."
The e-procurement platform was developed by SRM specialist Frictionless Commerce, which SAP acquired just over two years ago.
Royal Mail also uses the SAP financial application and plans to upgrade to SAP's SRM 7.0 and add a supplier collaboration module in the near future.
These positions cover a wide range of products and services including: Print, Sheetfed, Web, Digital, Screen, POS, POP, Direct Mail, Direct ...
Freight and Distribution Contracts - Cold Storage contracts - Contracts for Distribution equipment and pallets - Vehicle and fleet contracts To ...
Develop processes and controls that ensure clear, auditable management of an extensive procurement programme, including developing business ...
Agenda Setters 2009
Welcome to the ninth annual Agenda Setters poll – silicon.com's list of the top 50 most influential individuals in the technology and IT industries, from techies and CIOs to entrepreneurs and business leaders. Find out more in our latest special report.
Stories from the web...
Copyright © 2008 CBS Interactive Limited. All rights reserved. Top of page
Nick Heath
Let's shine a light into the public sector IT money pit
With £16bn being spent, why is productivity still falling?
Tim Ferguson
BBC is taking tech seriously, so give it a break!
Auntie is the envy of the world but doesn't get the credit it deserves at home...
Peter Cochrane
Peter Cochrane's Blog: Open info for all?
Government stonewalling citizens
Nick Heath
Home Office CIO on taming tech and why ID cards are good news
Interview: Annette Vernon, Home Office CIO
Nick Heath
NHS records, Google and Microsoft: Where do you want your data?
Politicians: Heal thyself
Alan Hunt
NHS network: Time to get secure
Patient data in need of a check up