Customer profitability
DHL’s pricing department used an MS Access/spreadsheet based, highly manual system to identify unprofitable business and then review pricing options to address the problem and return it to profitability.
Despite being extremely cumbersome and labour intensive, the methodology worked and DHL wanted to rollout the program across the organisation. But, to be successful, this would require a more integrated, streamlined and automated solution.
The requirement
DHL had five key requirements:
1. Reduce the time pricing managers spent collating and analysing data
2. Raise productivity by increasing the number of accounts under review
3. More focus on corrective actions
4. Ability to coordinate the activity centrally via an online portal to ensure data integrity and consistency
5. Use the online portal to share reporting and support managers when assessing pricing actions
The solution
Global teams have immediate access to the same information
Real time tracking to monitor the impact of each pricing action
- The process is automated and online so that country, regional and global teams have immediate access to the same information
- Automation of data entry process has eliminated data errors and significantly reduced the time needed for analysis
- Real time tracking to monitor the impact of each pricing action
- Consolidated reports for each customer with recommendations for improving customer profitability
- Sales teams can take corrective action based on a full understanding of the situation
Technical specifications:
Hardware: VMWare Virtual Server
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Operating System: Red Hat Enterprise Linux
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Database: Oracle
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Middleware: Apache Tomcat, Java
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Frontend: Angular
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The benefits
Improved productivity
100% Data accuracy
Real time tracking and reporting
Impact audit and analysis
The client
DHL is a leading global brand in the logistics industry. It provides a broad portfolio of logistics services including; parcel delivery, e-commerce shipping and fulfilment solutions, international express, road, air & ocean transport and supply chain management. DHL is part of the Deutsche Post DHL Group, which employs approximately 590,000 people and generates revenue in excess of €80 billion.
We’ve worked with The Information Factory on a number of projects and knew that their attention to detail, nimbleness and speed of delivery would ensure a successful outcome. The new system has been very successful at improving our margin management process, Pricing and Sales teams enjoy working with it and we’ve expanded the program to review over 1,500 customers globally each year.
Graeme Aitken
VP of Business Controlling, Global Costing & Transfer Pricing DHL Global
Contact The Information Factory
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Email: info@theifactory.com
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