07 June 2007 | Rebecca Ellinor
The overhaul of procurement at Lloyds TSB is to net multi-million pound savings.
The latest in the two-year programme of measures to improve buying at the bank includes establishing an e-procurement system called shop@i-need.
The SAP system gives staff access to procurement catalogues. It is helping the bank drive compliance and gain tighter financial control.
Shop@i-need went live at the end of March and 10,000 staff have already used it to process more than 50,000 orders.
In an exclusive interview with SM
, chief procurement director Caroline Booth said: "We're trying to use this system to make the easiest thing for our internal customers to do, the right thing for them to do. A lot of people think 'I want' not 'I need'. 'I need' is one of our mantras. We expect the new system to capture 50 per cent of our total annual spend by the end of 2008.
"It replaces an Ariba system, which previously captured 5 per cent of expenditure."
The procurement transformation programme at Lloyds TSB was established following recommendations from external consultants. Booth became executive sponsor of the programme after her appointment in January 2006. Under her leadership, group procurement exceeded its financial targets last year and better purchasing has become a board-level agenda item.
"Every month we report to the board on what's happened and talk about demand management," she said.
Other measures to transform purchasing across the bank include training, new recruitment, engaging other parts of the firm in purchasing and improving governance.