How to Manage E-invoicing Globally: The DHL Story

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1 How to Manage E-invoicing Globally | 18 Sept 2014 HOW TO MANAGE E-INVOICING GLOBALLY September 18 th , 2014

Transcript of How to Manage E-invoicing Globally: The DHL Story

  1. 1. HOW TO MANAGEE-INVOICING GLOBALLYSeptember 18th, 20141 How to Manage E-invoicing Globally | 18 Sept 2014
  2. 2. AGENDA DHL Overview Shared Service Organization E-invoicing History andChallenges New Requirement & Solution Tradeshift Solution Onboarding Suppliers Results Tradeshift Demo2 How to Manage E-invoicing Globally | 18 Sept 2014
  3. 3. INTRODUCTIONSSteven VerhasseltProgram Manager, DHL (GBS Finance & HR Services (Europe))Steven has 20 years of experience working in project environments,mainly in Finance and CRM.The last 10 years, Steven contributed, as a project and program manager,to the establishment of the Global Business Services organization withinDHL, and the growth of the DHL Finance Shared Services Center inMaastricht.Lately, Steven has been running mainly PTP programs for the differentbusiness partners within DHL, focusing on Invoicing Processing, eBillingInbound (supplier invoices), and workflow in general.3 How to Manage E-invoicing Globally | 18 Sept 2014
  4. 4. ABOUT DEUSTSCHE POST DHL Headquarters - Bonn, Germany Network - More than 220 countries andterritories served Revenue - Approx. EUR 55 billion (2013) Employees Approx. 480,000 (top 10 largestemployers in the world)DHL is part of the world's leading postal andlogistics Group, Deutsche Post DHL andencompasses three divisions: DHL Express, DHLGlobal Forwarding, Freight and DHL SupplyChain.4 How to Manage E-invoicing Globally | 18 Sept 2014
  5. 5. MAASTRICHT AS PART OF FHSOne of the 5 SSCMaastrichtCologne5 How to Manage E-invoicing Globally | 18 Sept 2014KualaLumpurSan Jose at the heart of FHS EuropeCACs EFSS SSCsProximityAR ExcellenceEconomy of scaleFinancial ExcellenceTransition HubCost ExcellenceOstrava
  6. 6. FHS EUROPE & EFSS, OPERATIONAL STRATEGYCountry Accounting CentersCACSSC - EFSS Maastricht Satellites (captive or BPO)Proximity Expertise Wage ArbitrageExecuting processesdemanding proximity to DHL end customer specific local knowledge local language skills high interaction with BusinessPartner (Controlling & Stations)Adding significant value in complex processes requiringspecialized accounting and DHLknowledge by consolidating regional scalableprocesses by acting as a transition andharmonization unit for the region6 How to Manage E-invoicing Globally | 18 Sept 2014Generating high wage savingsby taking over purely transactionalprocesses acting as back office for the CACs /EFSS specializing in specific processes(data factory)
  7. 7. PROCURE-TO-PAYORGANIZATIONAP Organization Approx 500 FTE6 ERP systems SAP, Oracle, JD EdwardsInvoices 10,000,000 Globally 2,000,000 DHL ExpressNo PO, No Pay policy going forward7 How to Manage E-invoicing Globally | 18 Sept 2014
  8. 8. E-INVOICING HISTORY & CHALLENGES8 How to Manage E-invoicing Globally | 18 Sept 2014
  9. 9. EINVOICING HISTORYPast solution Different e-invoicing providerDuration: Since 2007Scope: EuropeTo date: 12,000 15,000 e-invoices per month Equals 30% of total scope of project Approximately 35% suppliers onboarded9 How to Manage E-invoicing Globally | 18 Sept 2014
  10. 10. PAST CHALLENGESExpectations of 70% conversion within 2years not metSupplier Onboarding Challenges Supplier fees Suppliers had to pay annualsubscription or buy a package of e-invoices Manual onboarding One email, then call.Resulted in 50% of suppliers coming back toDHL to be onboarded. Interoperability Managed to interoperatewith some but not all. Lengthy process. Global footprint Lack of global presence10 How to Manage E-invoicing Globally | 18 Sept 2014
  11. 11. NEW REQUIREMENT & SOLUTION11 How to Manage E-invoicing Globally | 18 Sept 2014
  12. 12. NEW REQUIREMENTSBetter supplier onboarding methodologyInteroperability and open networkEasy and free for suppliersTrue global coverageSupplier capabilities/value Invoice status PO flip Dynamic validation Appeals to small and large suppliers12 How to Manage E-invoicing Globally | 18 Sept 2014
  13. 13. TRADESHIFT SOLUTIONTradeshift won RFP that involved 30 vendors,the offering includes:1. Electronic Invoicing Supports a wide number of transfer protocolssuch as web-interface, SFTP/FTPS/FTP and toan open API and some 20 document formats,such as cXML, Basda, EDIFACT and CSV. Compliant in 37 countries, open, multi-lingual,free for suppliers. Multi-tax capability up to 4 on one invoice2. Onboarding App Automated onboardingcampaigns13 How to Manage E-invoicing Globally | 18 Sept 2014
  14. 14. TRADESHIFT SOLUTION3. Business Firewall (Validation Rules) Invoice date: No more, or no less than 7 daysfrom the current date. PO based invoices: a valid PO number ismandatory. The PO number validation isdynamic and must match the exact requirementset in validation logic Non-PO based invoices: valid Cost Centrereference validation also dynamic validation4. CloudScanConverting invoices sent via paper/emailattachment into digital format Validation rules applied here also14 How to Manage E-invoicing Globally | 18 Sept 2014
  15. 15. PROJECT SCOPETradeshift Initial Scope Focus: All of Europe Suppliers: 1500 Invoices: 850,000 / yearPhase 2 Additional Europe: 1,300,000 invoices / yearPhase 3 Rest of World: 1,000,000 invoices / year15 How to Manage E-invoicing Globally | 18 Sept 2014
  16. 16. SUPPLIER ONBOARDING16 How to Manage E-invoicing Globally | 18 Sept 2014
  17. 17. SUPPLIER ONBOARDING - EASY17 How to Manage E-invoicing Globally | 18 Sept 2014
  18. 18. RESULTS TO DATE18 How to Manage E-invoicing Globally | 18 Sept 2014
  19. 19. COUNTRY ROLL-OUTLive Belgium Austria Finland Netherlands France Denmark UKIn Campaign: Norway, UK (Freight)Testing: GermanyKicked-off: Italy, Switzerland, PortugalSome countries are 60% electronic already20-30% conversion rate every month19 How to Manage E-invoicing Globally | 18 Sept 2014
  20. 20. ONBOARDING SUCCESSAutomated onboarding campaigns Onboarding continuously running standalone Questions from suppliers are rarely about theactual onboarding process its simpleStats Original Scope 1,500 suppliers Approx 700 onboarded (~50%) 3% rejected Remainder - undecided as yet20 How to Manage E-invoicing Globally | 18 Sept 2014What has worked well CSM concept (Customer Success Manager) -Dedicated team to ensure joint success (DHL +Tradeshift) Easy & flexible method for suppliers to connect Smaller suppliers Previously was very difficultto onboard, very easy with Tradeshift White Glove Custom approach to onboardinglarge volume suppliers
  21. 21. Amazing things happen when businesses connectTradeshift brings all companies, big and small, together totransact, connect and collaborate with each other. Enterprises Work more easily and productively with theirentire supply chain, anywhere in the world. Suppliers - Free electronic invoicing, faster payments andpredictable cash flow is only the beginning.Over 500,000 suppliers in over 100 countries5 million suppliers connected through platform partners such asIntuitFastest growing B2B platform in the world today with more than2000 suppliers joining every week21 How to Manage E-invoicing Globally | 18 Sept 2014
  22. 22. WHO WE WORK WITHSBSSome large suppliers on the Tradeshift Network:22 How to Manage E-invoicing Globally | 18 Sept 2014
  23. 23. TRADESHIFTS OPEN PLATFORM APPROACHCloudScan(Paper)ManagementTRADESHIFT PLATFORMSupplierDocument Transmission, Statuses, Messages, Integration, Security, APISupplier23 How to Manage E-invoicing Globally | 18 Sept 2014BuyerOrderManagementElectronicInvoicingBusinessFirewallCollaborativeWorkflowFinancialSolutionsBuild Your OwnAppAbility to expand functionality as needed
  24. 24. TRADESHIFTS BALANCED VALUEPROPOSITIONSupplier BuyerFree. No supplier fees. Ever.Connect via web, integration or anyaccounting software.Communicate & collaborate directlywith your buyers.Reduce cost and friction for yourentire supply chain.One platform for all your businessneeds.Lower Manage & track POs, invoices, costs for your entire supply chain.faster payment and much more.24 How to Manage E-invoicing Globally | 18 Sept 2014Communicate and collaborate withsuppliers.Innovate past invoicing on top of anopen platform.
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