Neither rain nor sleet nor gloom of night can keep the U.S. Postal
Service from its appointed rounds, but a 25-year-old Human Resources software system
is apparently stopping the mailman in his tracks.
So the USPS said this week that it is turning to SAP
replace the aging software that was developed internally to manage its more
than 700,000 employees — one-third of the civilian workforce of the federal
The estimated $35 million contract is split up into $14 million for the
mySAP Business suite and standard maintenance agreement and a $21 million
consulting contract with SAP’s Professional Services division to install
The Postal Service said it selected SAP after it spent several years
assessing the functional, technical and Web-enabled capabilities of SAP
software. Neither the Postal Service nor SAP would comment on which other
companies had been in the final running for the bid. SAP has found itself in
a virtual dogfight with other ERP vendors like PeopleSoft and Oracle to
supply customers with Human Resource Management (HRM) or Financial
Management Services (FMS) tools.
SAP said it has a leg up on the competition since it had successes with
some 50 other postal organizations around the world, and knows how to upgrade
systems while protecting a company’s existing technology.
“Postal organizations like the U.S. Postal Service can develop a
high-performing workforce, improve productivity and control costs by
leveraging workforce planning solutions from SAP to recruit, train and track
employees while improving the skill mix of its employees, and providing
managers with access to tools for proper planning,” Steve Peck, president of
SAP Public Services, said in a statement.
As part of its selection of mySAP Business Suite, the U.S. Postal Service
also licensed SAP NetWeaver application platform to analyze information
throughout the organization in order to identify problem areas, train and
support mail carriers, while maintaining high-quality customer service.
“The desired result of the project is to leverage technology to provide
more value to our most valuable asset, our employees. The software will also
provide management with the flexibility to manage and control costs,” USPS
chief technology officer Robert Otto said in a statement.
No timelines were disclosed for the project.