Royal Mail delivering on its technology
Royal Mail's new IT accounting system contributes to its record annual profits
As the Royal Mail battles against a potential price cap on postage costs, the organisation has revealed that new business and accounting IT systems had saved it tens of millions of pounds.
The organisation, which earlier this month posted record annual profits of £537m, said that its new systems helped turn daily losses of £1m into earnings of £2m.
‘IT has had a very large contribution to the overall bottom line in many ways. It’s been a major component of the change,’ said Wendy Powney, Royal Mail’s enterprise IT director.
The modernisation project involved the use of SAP financial and business intelligence software, used by 8,000 staff at 1,400 delivery offices. The SAP system helped reduce time and cost of processing the two million invoices Royal Mail issues to 250,000 business customers each year.
The software, which replaced seven disparate IT systems, also reduced inventory holdings, streamlined accounts payable processes, and shortened planning.