Credit Suisse saves £23m using e-procurement
Credit Suisse First Boston claims it is on target to achieve savings of $35m (£23.9m) in the first three years of using an e-procurement system worldwide.
The bank went live with the PeopleSoft e-procurement module in July last year across 850 business units responsible for global spend of over $2.8bn (£1.9bn).
Sue Baker, director of the corporate services department at CSFB, said the system has given the company’s 5-10,000 purchasing users a much clearer picture of the supply chain, lowered costs and reduced headcount.
‘We have reduced the cost base and eliminated headcount. We had a three year plan and we are on target to achieve savings of $35m,’ she said.
And the bank is likely to exceed an initial return on investment estimate of 277%, according to Baker.
‘Before, we couldn’t identify what we had spent our money on and multiple systems and processes were costly to manage,’ she said.
Current figures show the cost per transaction has dropped from $250 (£170) to $50 (£34) while the electronic catalogue has saved around $20m (£13.6m).
The purchasing module is used by CSFB staff in the London and New York offices and bolts onto the PeopleSoft general ledger financial system also adopted by the bank last year.