Implementing new software for 130 countries Bernard Smith Billing programme manager DHL Western Europe and Emerging Markets E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Core Service Offerings • Core Service is to pick up and deliver shipment in the fastest and most reliable way • Particular expertise required in: – Fast decision-making – Relationship-building (customs, security) – IT • Also provide logistics services • Many products available, depending on country of operation E&A review
Express Services • Express international door-to-door delivery of: – Non-declarable items (eg, documents, invoices, contracts, reports) • Express international door-to-door delivery of: – Declarable items (eg, samples, spare parts, finished products) May have to pay duty at destination • Europe, Asia, the US and Latin America have specific overnight delivery services E&A review
Special Packaging • Designed for specific types of shipment for example, – Temperature-controlled packaging that keeps medical shipments cool – Shock-absorbing crating for wine bottles – Jumbo Box (flat fee box, for consolidating numbers of small items) E&A review
Service Options • Saturday Delivery • Same Day Service • Delivery Duty Paid • Special Clearance Services • Banks & financial institutions E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Import Express product • Import Express allows DHL customers to be billed at Destination for shipments sent by – their suppliers – their staff travelling abroad – anyone else they need to receive shipments from • Customers are quoted a tariff at destination for shipments from 215 countries • Some countries also allow Third country billing E&A review
Business processing- Outbound • Customers are allocated special account number for IMP shipments (96…) • Many customers require a copy of the DHL paperwork (Airway. Bill) before approving the invoice. • DHL offices in the shipping country send data to a central sorting office. • Copy paper work is sent from the shipping country to the Billing country E&A review
Business processing - Central • Central sorting office maintains tariff for each customer and prices each transaction • The priced transactions are then sent to the billing country E&A review
Business processing - Inbound • Billing countries identify the IMP shipments and log them. • When the centrally processed file is received the billing departments match the logged shipments to the received data file. • The pricing of the shipments are then checked. • If the customer requires backup paperwork then when it is received from the shipping country it is attached to the Invoice E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Why the need for the project • The IMP business had grown by 20% pa since it was launched in 1995. • Due to the business volumes the central sorting office could not maintain the tariffs accurately • Data and paper transmission is on a monthly cycle which led to 60 m Euros being unbilled in the month of shipment • Reduce the costs of the centralised processing unit, by de-centralising pricing. E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Business Objectives • • Top 17 countries to be FT compliant by Q 3 2001 Reduce large revenue accruals for EXB Improve I/B cash flow by 10% Reduce errors for IMP Harmonise O/B and I/B tariff maintenance Easier account set-up Replace BNF process Reduce CB costs E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
What did we have to do? • Develop software to enable countries to price IMP shipments locally • Amend billing software to be able to send and receive IMP files weekly • Deploy software to 84 countries • Convert data from centralised tariffs to country tariffs • Change business processes from monthly to weekly cycles E&A review
But. . . E&A review
Number of countries • 130 countries in Europe Africa and Middle East – 16 already had a compliant system – 30 not allowed to sell Import Express product or had single tariff – 84 countries to be deployed • 17 Western Europe • 25 Central and Eastern Europe • 42 Africa E&A review
Data conversion issues • UK had 552, 000 Origin-Destination pricing pairs • Took 5 days to run UK extract! E&A review
How did we do it • Software built and tested • Developed CBT Training module • Guidelines for implementing in countries – User Guide/Test cases/Project plan • Developed Harmonised procedures • Ran central workshop for top 17 countries • Ran training session in Ivory Coast and Kenya for African countries E&A review
Country groupings • Large/Medium sized country – – Extracted tariffs and converted to new structure Implemented reporting process Tracked individual country progress Visited to discuss planning and to help testing • Small countries – – Centralised training Countries re-keyed tariffs Tracked volume of countries live/testing Countries were clustered for communication with region E&A review
Monthly reporting E&A review
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Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Schedule • • Business Objectives agreed - Q 1 2000 Software developed Q 2/Q 3 2000 Software tested - November/December 2000 Software deployed - top 17 - August 2002? Software deployed Africa/Eastern Europe - Jan 2002 Frequent Transmission switch on - July 2001 Centralised Tariffs switched off - December 2001 E&A review
Regional Activities - Plan • IS development – budget 0. 6 man years • Deployment – budget 3. 4 man years • web site for the project • CBT on using new tariff tool • Incorporate EXB local modifications in regional s/w E&A review
Regional Activities - Actual • IS development – actual 4. 3 man years (0. 6 budget) • Deployment – actual 4. 4 man years (3. 4 budget) • web site – (done - but access problem for African countries) • CBT (done - but countries wanted on site training) • Incorporate local modifications in regional s/w – (done e. g. CH rounding, multi-currency tariffs) E&A review
Country activities - effort • 2000 estimate for deployment – 5. 4 man years • Jan 2001 (post beta) estimate – 12 man years • Actual effort – 13. 7 man years • Country effort plan – sma 1 l – medium – large E&A review actual 58 man-days 60 man-days 118 man-days 120 man-days 175 man-days 192 man-days
Country activities - but • Projects took 2 months longer than planned due to other priorities (Euro, EFSS transition, TI 2000) • Tariff extract was difficult • Local modifications in large countries delayed implementation • new Financial Service Center meant that: – EFSS/Country/Region responsibilities unclear – lack of EXB expertise delayed implementation – EFSS transition countries lacked motivation • Difficult to get 100% progress reporting E&A review
What we will do differently next time • Standard project management - (Prince 2 for countries and region) • Escalate non-reporting of progress • Get planning phase kicked off in advance (even if implementation has to be delayed) • Send African countries documentation on CD • Make sure other impacted departments are pushing their country staff to be involved. • Get dedicated Data Centre resource for technical work • Provide more on site support (if deadlines must be achieved) E&A review
Agenda • • DHL - Overview What is the Import Express product? Why the need for the project? What were the original objectives? How the project was managed What happened? 9 months post completion what has happened? E&A review
Business Objectives • • Top 17 countries to be FT compliant by Q 3 2001 Reduce large revenue accruals for EXB Improve I/B cash flow by 10% Reduce errors for IMP Harmonise O/B and I/B tariff maintenance Easier account set-up Replace BNF process Reduce CB costs E&A review
Follow up actions • • • Get countries to bill I/B files within billing month. Drive out productivity enhancements Improve ERM functionality e. g. mass update Harmonise procedures Upgrade all countries to latest ERM version E&A review
Overall Business Case E&A review
Overall assessment • Countries have improved their tariff structure • Quality of Billing has improved but limited financial benefits to date • Cost savings from closing central tariff role were absorbed by project effort • Country efficiency improvements were not large enough to be reflected in reduced headcount. • Why de-centralise tariffs prior to re-centralising? E&A review
Finally • Any questions? E&A review
Resourcing • • 1 Programmer (data conversion) 1 Business analyst/trainer P/T project management P/T technical deployment support E&A review
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