e-Billing in DHL

e-Billing in DHL

Amsterdam, 10th May 2011

SSOW

e-Billing in DHL | Amsterdam |10th May 2011 Page 2OTC E++ Deployment Project Introduction v0.1.ppt

Agenda

e-Billing in DHL – Background and Solution Overview

Current Status

Challenges

Going Forward - Building on the Basics

Going Forward – Dynamic Dashboard

Outlook and Strategy


Problem:

• Customers are increasingly demanding to trade electronically

• Multiple legal and operational entities in each country = multiple billing systems

• Customers receive many invoices from DHL, containing different information, in many formats

• Currently invoices are still delivered by post, in paper format = costs and delays

Opportunity• The EU e-Invoicing Directive (‘Directive 2001/115/EC amending Directive

77/388/EEC with a view to simplifying, modernising and harmonising the conditions laid down for invoicing in respect of value added tax’)

• Member States must accept invoices in electronic form

The project increased the functionality and usage of existing architecture to form a foundation to support all existing, and anticipated future, e-billing requirements

Background


One gateway, multiple outputs - will address the different needs of different customers :

Buyer Co. Profile

Large Businesses

Mid-Size Businesses

Small Businesses

E-Billing Solution

Web / E-Mail

(Biller Direct Model)

No of Customers

Transactions

Per Invoice

EDIHigh

Low

Low

High

Dual e-Billing Solutions


CustomerBilling

Extracts

GatewayConsolidation

Standardization

Enrichment

EDIMessage

AccountisWeb/Email

StandardEDI

CustomEDI

EDI Stream

E-Billing Solution

Legend

Solution Overview

Other

Agents


Marketing Banner

Hyperlink to website

PDF Invoice Attached

Invoice Email – PDF Attachment


Multiple download options

Invoice Data Download


Registering Queries


3949665263

Active Reference

Click through to AWB Images

Backup Paperwork – Request Airwaybill


3949665263

Backup Paperwork – Provide Airwaybill Image


Enhanced Search and Download


Cost Saving• Reduce the number of paper invoices Paper, post, printing• Reduce contact centre queries: copy invoice Call handling• Click through to shipment (track and trace) details Reduced calls / queries• Click through for backup documentation (AWB images) Reduced calls / queries

DSO Reduction• Faster, more accurate, delivery of invoices• ‘Proof’ of invoice delivery• Online payment methods *

Ease of use• Additional channel for marketing Brand reinforcement • Complete set output channels to reach all customers Email, WEB, EDI, Print• Online dispute initiation functionality (by email) Ease of use

* Potential future releases

Benefits: For the Biller


Cost Saving

• No Internal Logistic Costs

• Mail Room Receipt and Scanning cost

• Internal Distribution cost from (central) mailroom to user workstation

• No manual Invoice data input necessary at the workstation

• No archiving costs

Improved AP Processing Quality

• No input errors possible

• 24 / 7 transparency on DHL Invoices

Supports Customer Values

• Paperless, Environmentally friendly Process

Benefits: For the Customer


Live with Customers

Implementation Phase

2011

Legend :

Status - Deployment

BE

CH

SI

PT

ES

FR

IE

NOSE

PL

EE

LV

LT

FI

AT

CZ

SK

HU

IT

IS

NL

DK

GB

DE

RO

BG

GR


Status - Conversion

151,449# of e-invoices

50 %

34.3

Target %

E-invoices VS all invoices %

Number of trees sparedThis month : 104YTD : 276In 2010: 790

Prev. years : 576

2010/2011 Conversion Rate

92,863 96,377 97,054109,340

129,364 127,657 123,349129,245

151,449

89,98282,157

87,729

26.0%29.6%

26.3% 24.2% 26.5% 25.9% 27.6% 30.3% 28.8%32.3% 32.5% 34.3%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11

Month

Num

ber o

f e-in

voic

es

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Con

vers

ion

Rat

e

Number of e-invoices Conversion rate


Challenges

Gaining Commitment

• From Internal Customers

• From External Customers

Why ?

• Confusion about legality

• Uncertainty about benefit realisation

• Complexity of current landscape


Challenges - Legislation

Gaining Commitment



Why ?





A T

B E

B G

C Y

C Z

D K

E E

F I

F R

D E

E L

H U

I E

I T

L V

L T

L U

M T

N L

P L

P T

R O

S K

S I

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S E

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C H

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1

2A

2B

3

“If electronic invoicing were accepted in the same way that paper invoices are … companies could save around 18 thousand million Euros during the invoicing of approximately 40 thousand million bills…” Dr Edmund Stoiber

EU Directive 2006/112/EC - Resolution in 2012 ?

80% culture ?

Certainly hope so !

Current VAT rules on electronic invoicing


Challenges – Benefit Realisation

Gaining Commitment



Why ?






Cost Saving

Reduce the number of paper invoices Paper, post , printing

Downward pressure on paper invoice costs – reducing benefits:

Outsourcing

Duplex Printing

Collective bargaining

How much does a paper invoice cost ?

€0.37, €0.45, €1.00, €1.50,… ?

Depends on the size of the invoice…..


Challenges – Benefit Realisation – Size of an Invoice


Challenges – Benefit Realisation – Size of an Invoice



Cost Saving

Reduce contact centre queries

Click through for backup documentation

DSO Reduction

Faster, more accurate delivery of invoices

Online dispute initiation



Cost Saving

Reduce contact centre queries

Click through for backup documentation

DSO Reduction

Faster, more accurate delivery of invoices

Online dispute initiation

Measuring (and claiming) the benefits, is the challenge


Going Forward - Building on the basics

Step 1 – replace paper invoice with electronic invoice and provide electronic data




And then build….gradually…

Enable customers to log queries

Enable customers to access backup documentation




And then build….gradually…

Enable customers to log queries

Enable customers to access backup documentation

And next

Reporting and analysis

Invoice + - enriching the invoice with additional information

Invoice push - moving towards an automated solution, replacing EDI

Weekly billing

Payments !!!

.....









Source: Economist

Serves up 2,000,000,000 videos per day !

Twitterers Tweet 750 times per second

People post 2.5 billion photo’s on Facebook every month

Since 2000, 72 American newspapers have folded

Circulation has fallen by a quarter since 2007

95% of all music downloads are illegal

Internet Traffic is Growing by 40% per annum

http://www.google.co.uk/imgres?imgurl=http://farm4.static.flickr.com/3323/3606295240_51f643dd5d.jpg&imgrefurl=http://www.flickr.com/photos/23963573%40N08/3606295240/&usg=__DzeYv-7ZT9UgL4IlnbJNpeuALz4=&h=354&w=500&sz=34&hl=en&start=1&zoom=1&tbnid=6TnGCXNjyCqVeM:&tbnh=92&tbnw=130&ei=78i6TdLIH4nYtAbYkKyDBg&prev=/search%3Fq%3Dyou%2Btube%2Blogo%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.co.uk/imgres?imgurl=http://www.karenpickering.co.uk/content/photos/logos/twitter_logo.gif&imgrefurl=http://www.karenpickering.co.uk/&usg=__4laM5de9UvPtZ5ZzVUCnZ0YfdoY=&h=200&w=477&sz=13&hl=en&start=8&zoom=1&tbnid=4Veg9QqcyRWDKM:&tbnh=54&tbnw=129&ei=dsm6TcfnFIfQsgaS-42XBg&prev=/search%3Fq%3Dtwitter%2Blogo%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.co.uk/imgres?imgurl=http://www.francescoltd.co.uk/wp-content/uploads/2011/01/facebook-logo.png&imgrefurl=http://www.francescoltd.co.uk/social-network-marketing/&usg=__ynQo4Cm3ULUJ8ZCVlreKtrT2LMY=&h=258&w=535&sz=14&hl=en&start=14&zoom=1&tbnid=-i13FnZMifBzhM:&tbnh=64&tbnw=132&ei=MMq6TYi3LsfAtAbMqZ2RBg&prev=/search%3Fq%3Dfacebook%2Blogo%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.co.uk/imgres?imgurl=http://www.oceanairhandling.co.uk/images/newspaper.gif&imgrefurl=http://www.oceanairhandling.co.uk/news.html&usg=__EIamu5qB1SF0q92VdbUWAAH0IAo=&h=1877&w=1623&sz=71&hl=en&start=2&zoom=1&tbnid=sAOsOI1yQl3SFM:&tbnh=150&tbnw=130&ei=E8u6TcOyHorZtAbVssz4BQ&prev=/search%3Fq%3Dnewspaper%26hl%3Den%26safe%3Doff%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.co.uk/imgres?imgurl=http://www.avrev.com/images/stories/news/Feb2010/itunes.png&imgrefurl=http://www.avrev.com/home-theater-news/music-download-technology-news/itunes-tops-ten-billion-music-downloads.html&usg=__bCUadp7IiQuztmpjQURfrQb9W1I=&h=512&w=512&sz=259&hl=en&start=39&zoom=1&tbnid=UfQKHBgVPMt-NM:&tbnh=131&tbnw=131&ei=P8y6TfarBcbWsgbE6M2DBg&prev=/search%3Fq%3Dmusic%2Bdownloads%26start%3D20%26hl%3Den%26safe%3Doff%26sa%3DN%26gbv%3D2%26tbm%3Disch&itbs=1

http://www.google.co.uk/imgres?imgurl=http://www.thetechbrief.com/wp-content/uploads/2008/02/internet-growth.JPG&imgrefurl=http://www.thetechbrief.com/tag/internet/&usg=__F0KWtMnSeiYc25GcnIO9Ry2WUiA=&h=357&w=288&sz=14&hl=en&start=22&zoom=1&tbnid=OjJ-DiJTO7Zc2M:&tbnh=121&tbnw=98&ei=w8y6TanoD8TEsgab2eGaBg&prev=/search%3Fq%3Dinternet%2Bgrowth%26start%3D20%26hl%3Den%26safe%3Doff%26sa%3DN%26gbv%3D2%26tbm%3Disch&itbs=1



Henry Ford was fond of saying that if he had listened to his customers,

he would have produced a better horse and buggy !

Why buy newspapers - when you can get up to the minute news on the web ?

Why buy the latest CD - when you can watch it on YouTube for free ?

Why send paper invoices…….???

Why do your own admin….. ???

Why do your own support…. ???



e-Billing target ??

90% of shipment data is received via e-Com / EDI !!

Objectives

e-Billing / Billing as part of the overall value chain

e-Billing as part of the e-Com strategy

e-Com is not a project or program that supplements your strategy – it is a strategy in it’s own right …


Existing Markets / Existing Products

Penetration

Existing Markets / New Products

e-payments, e-dunning, more documents, more analysis tools…

New Markets / Existing Products

Geography, Divisions,…

Innovation

Data mining, e-marketing, dynamic discounting…

Full integration into DHL process

Customer self- service online



The future is bright….

…the future is yellow…

…The future is ‘e’ !!!!
