Royal & SunAlliance is to revolutionise its business practices by introducing a global eProcurement system for more than 75% of its transactions.

Employees will use eProcurement from the humdrum task of ordering paper clips up to the contracting of senior level consultancy services such as global accountants.

The system, which cost £3m to develop, is expected to produce savings of £20m annually.

RSA will have a small number of suppliers hosted on the system in a bid to minimise expenditure, improve supply chain management and ensure standardisation around the world.

Ultimately a wide range of goods and services including travel, IT equipment, temporary labour, office supplies and third party training will all be procured electronically.

RSA procurement director Moira Crabtree said: "Our ground-breaking approach will become the model for the financial services industry."