Neopost is the fastest growing supplier of mailroom, document and logistics solutions in the UK, and the No.1 supplier in Europe with some 800,000 customers in the corporate, public and professional sectors. Neopost have a direct presence in 15 countries, with more than 5,500 employees and annual sales of €918.5m in 2008. The company’s growth in the UK over the past five years has been singularly impressive, with UK revenues of £102 million, more than double that of 1999.
To help support the company’s fast growth trajectory, the business implemented an SAP solution which comprises, financials, sales and distribution, materials management, HR and payroll. The UK system is used by nearly 300 people across 10 regional sites.
Mike Tonkiss is Neopost’s IT Director and an industry veteran in a career that spans some 17 years. Mike is responsible for strategic IT management within the UK operation and heads a team of people whose role is to support the businesses IT requirements.
The Business Challenge
In 2007, Neopost UK launched their SAP system. To secure some continuity of service, the team at Neopost selected their original implementation partner to provide the ongoing support for the new SAP system. However, shortly after the implementation process concluded, Neopost started to experience a sharp decline in service quality. Mike says “Post go-live, the relationship with our support partner deteriorated very rapidly. It appeared that the partner had seriously underestimated the scale of the effort needed to effectively support the system during the crucial early stages. Because of their miscalculation, the partner was unable to provide adequate coverage – which culminated in delayed response times, a continually increasing backlog of change requests and some serious knowledge gaps which became apparent in a number of the consultants placed on the job”.
One year after go-live, Neopost found themselves with the prospect of instructing a new support partner to take over the project.
Mike said “because our SAP support partner failed to step up and make good on the concerns that we had, we lost confidence in them as a strategic partner who could support our requirements going forward”.