SAP E-Sourcing solution underpins Royal Mail procurement transformation

Procurement systems at Royal Mail have been transformed by the introduction of E-Sourcing, a single, easy-to-use common sourcing process supported by the SAP platform.

London, UKThe change, whose successful completion is being announced today, has a key part to play in a three year transformation programme of the Royal Mail’s procurement team, which aims make the team one of the top procurement teams in Europe and save the business £300m by 2009. The programme, led by Daniel Cameron, Royal Mail Group Procurement Director of Performance and Transformation, focuses on changing the team across the key area of people, processes and technology, with the E-Sourcing initiative forming a key part of the processes and technology workstreams.

Daniel Cameron said: ‘We believe it’s the first time the solution has been introduced in Europe on the SAP platform and it is a key part of our transformation programme for Royal Mail Group Procurement.’

The E-Sourcing programme went live this summer and is being rolled out across more than 100 staff within the Royal Mail Group Procurement team. Already, it is proving an effective tool in helping the team manage £2.3 billion annual expenditure through the contracting process.

Steve North, Royal Mail Senior Procurement Manager, Technology, who led the implementation, said: “The solution allowed us to move away from our previous disparate 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.”

The Royal Mail Procurement Transformation programme has been supported by Deloitte, who were selected based on their depth of capabilities across the full breadth of requirements, including business planning, procurement, change and people management and technology enablement.

“We were delighted to be chosen as the preferred partner for this ground-breaking transformation, particularly as the culture, professionalism and level of innovative thinking that Group Procurement have been instilling reflect our own ethos” said James Yearsley, Partner at Deloitte. “The well defined objectives for the overall transformation allowed us to jointly design and deliver a robust technology solution that would enable effective and efficient sourcing, whilst providing reporting visibility and an appropriate level of governance.”

Simon Etherington, Director of Public Sector, SAP UKI, noted that SAP solutions are already used within different areas of the Royal Mail Group. “Royal Mail’s decision to implement the SAP E-Sourcing solution gives further credibility to the benefits that SAP customers are achieving in the public sector, and further strengthens the relationship with Deloitte.”

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country’s leading professional services firms. Deloitte & Touche is the United Kingdom member firm of Deloitte Touche Tohmatsu (“DTT”), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press. For more information, please visit