In 2013, DHL started their e-invoicing program with Tradeshift. Since then, Steve Verhasselt, Program Manager, DHL (GBS Finance & HR Services (Europe)) and his SSC team have:
1. Successfully managed the technical integration with three ERPs: SAP, Oracle and JD Edwards
2. Already onboarded 733 out of the 2,000 suppliers in scope for the first part of the program
3. Created a Business Process Optimization (BPO) team to onboard the suppliers and act as a shared service
4. Configured operations so that the BPO team reports into finance, and works very closely with procurement to manage supplier onboarding
Learn more in this presentation.
1. HOW TO MANAGE
E-INVOICING GLOBALLY
September 18th, 2014
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2. AGENDA
• DHL Overview
• Shared Service Organization
• E-invoicing History and
Challenges
• New Requirement & Solution
• Tradeshift Solution
• Onboarding Suppliers
• Results
• Tradeshift Demo
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3. INTRODUCTIONS
Steven Verhasselt
Program 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 within
DHL, and the growth of the DHL Finance Shared Services Center in
Maastricht.
Lately, Steven has been running mainly PTP programs for the different
business partners within DHL, focusing on Invoicing Processing, eBilling
Inbound (supplier invoices), and workflow in general.
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4. ABOUT DEUSTSCHE POST DHL
• Headquarters - Bonn, Germany
• Network - More than 220 countries and
territories served
• Revenue - Approx. EUR 55 billion (2013)
• Employees – Approx. 480,000 (top 10 largest
employers in the world)
DHL is part of the world's leading postal and
logistics Group, Deutsche Post DHL and
encompasses three divisions: DHL Express, DHL
Global Forwarding, Freight and DHL Supply
Chain.
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5. MAASTRICHT AS PART OF FHS
One of the 5 SSC…
Maastricht
Cologne
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Kuala
Lumpur
San Jose
… at the heart of FHS Europe
CACs EFSS SSCs
Proximity
AR Excellence
Economy of scale
Financial Excellence
Transition Hub
Cost Excellence
Ostrava
6. FHS EUROPE & EFSS, OPERATIONAL STRATEGY
Country Accounting Centers
CAC
SSC - EFSS Maastricht Satellites (captive or BPO)
Proximity Expertise Wage Arbitrage
Executing processes
demanding…
proximity to DHL end customer
specific local knowledge
local language skills
high interaction with Business
Partner (Controlling & Stations)
Adding significant value…
in complex processes requiring
specialized accounting and DHL
knowledge
by consolidating regional scalable
processes
by acting as a transition and
harmonization unit for the region
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Generating high wage savings
by…
taking over purely transactional
processes
acting as back office for the CACs /
EFSS
specializing in specific processes
(data factory)
7. PROCURE-TO-PAY
ORGANIZATION
AP Organization – Approx 500 FTE
6 ERP systems – SAP, Oracle, JD Edwards
Invoices
• 10,000,000 Globally
• 2,000,000 DHL Express
No PO, No Pay policy going forward
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9. EINVOICING HISTORY
Past solution – Different e-invoicing provider
Duration: Since 2007
Scope: Europe
To date:
• 12,000 – 15,000 e-invoices per month
• Equals 30% of total scope of project
• Approximately 35% suppliers onboarded
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10. PAST CHALLENGES
Expectations of 70% conversion within 2
years not met
Supplier Onboarding Challenges
• Supplier fees – Suppliers had to pay annual
subscription or buy a package of e-invoices
• Manual onboarding – One email, then call.
Resulted in 50% of suppliers coming back to
DHL to be onboarded.
• Interoperability – Managed to interoperate
with some but not all. Lengthy process.
• Global footprint – Lack of global presence
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11. NEW REQUIREMENT & SOLUTION
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12. NEW REQUIREMENTS
Better supplier onboarding methodology
Interoperability and open network
Easy and free for suppliers
True global coverage
Supplier capabilities/value
• Invoice status
• PO flip
• Dynamic validation
• Appeals to small and large suppliers
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13. TRADESHIFT SOLUTION
Tradeshift won RFP that involved 30 vendors,
the offering includes:
1. Electronic Invoicing
• Supports a wide number of transfer protocols
such as web-interface, SFTP/FTPS/FTP and to
an 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 invoice
2. Onboarding App – Automated onboarding
campaigns
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14. TRADESHIFT SOLUTION
3. Business Firewall (Validation Rules)
• Invoice date: No more, or no less than 7 days
from the current date.
• PO based invoices: a valid PO number is
mandatory. The PO number validation is
dynamic and must match the exact requirement
set in validation logic
• Non-PO based invoices: valid Cost Centre
reference validation – also dynamic validation
4. CloudScan
Converting invoices sent via paper/email
attachment into digital format
• Validation rules applied here also
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15. PROJECT SCOPE
Tradeshift Initial Scope
• Focus: All of Europe
• Suppliers: 1500
• Invoices: 850,000 / year
Phase 2
• Additional Europe: 1,300,000 invoices / year
Phase 3
• Rest of World: 1,000,000 invoices / year
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18. RESULTS TO DATE
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19. COUNTRY ROLL-OUT
Live
• Belgium
• Austria
• Finland
• Netherlands
• France
• Denmark
• UK
In Campaign: Norway, UK (Freight)
Testing: Germany
Kicked-off: Italy, Switzerland, Portugal
Some countries are 60% electronic already
20-30% conversion rate every month
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20. ONBOARDING SUCCESS
Automated onboarding campaigns
• Onboarding continuously running standalone
• Questions from suppliers are rarely about the
actual onboarding process – it’s simple
Stats
• Original Scope – 1,500 suppliers
• Approx 700 onboarded (~50%)
• 3% rejected
• Remainder - undecided as yet
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What 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 difficult
to onboard, very easy with Tradeshift
• White Glove – Custom approach to onboarding
large volume suppliers
21. Amazing things happen when businesses connect
Tradeshift brings all companies, big and small, together to
transact, connect and collaborate with each other.
• Enterprises – Work more easily and productively with their
entire supply chain, anywhere in the world.
• Suppliers - Free electronic invoicing, faster payments and
predictable cash flow is only the beginning.
Over 500,000 suppliers in over 100 countries
5 million suppliers connected through platform partners such as
Intuit
Fastest growing B2B platform in the world today with more than
2000 suppliers joining every week
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22. WHO WE WORK WITH
SBS
Some large suppliers on the Tradeshift Network:
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23. TRADESHIFT’S OPEN PLATFORM APPROACH
CloudScan®
(Paper)
Management
TRADESHIFT PLATFORM
Supplier
Document Transmission, Statuses, Messages, Integration, Security, API
Supplier
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Buyer
Order
Management
Electronic
Invoicing
Business
Firewall
Collaborative
Workflow
Financial
Solutions
Build Your Own
App
Ability to expand functionality as needed
24. TRADESHIFT’S BALANCED VALUE
PROPOSITION
Supplier Buyer
Free. No supplier fees. Ever.
Connect via web, integration or any
accounting software.
Communicate & collaborate directly
with your buyers.
Reduce cost and friction for your
entire supply chain.
One platform for all your business
needs.
Lower Manage & track POs, invoices, costs for your entire supply chain.
faster payment and much more.
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Communicate and collaborate with
suppliers.
Innovate past invoicing on top of an
open platform.
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DEMO
Editor's Notes
As I mentioned, Tradeshift is a platform that enables buyers and suppliers to transact, connect and collaborate. From the very beginning our platform was really designed to be open, flexible, completely cloud-based and fully mobile and our network of buyers and suppliers is at the core of everything.
To provide a better idea of our platform I’ll use the iphone as an eg….When apple introduced the iphone it built certain core apps like email, calendar, messaging but they also enabled 3rd parties to build apps on their paltform – now there are 1.2M apps and that is a major reason why people want to use the iphone.
Similarly, Tradeshift built certain core apps like electronic invoicing, cloudscan, collaborative workflow, early payment solutions but we have also enabled 3rd parties to built apps on top of tradeshift and add value to buyers and suppliers. AND…our customers also have the opportunity to design their own apps….a good example is supplier registration. One of our clients saw after using tradeshift that they could automate the supplier registration process, so together with them we designed a supplier registration app…that is now available to everyone on the platform.
One last piece that I wanted to share is that Tradeshift really takes a balanced approach to providing value to both suppliers and buyers…with suppliers: we really focus on ensuring that there is value for them…in addition to being free for suppliers, we offer multiple connectivity options, great visibility into the AP process and additional benefits such as acelerated payments and profile pages.
And for buyers, well we offer multiple capabilities from handling paper and PDF docs from smaller suppliers as Steven mentioned to integrating with suppliers systems to early payment capabilities. Tradeshift is interoperable with other networks as well. And one of the biggest value-adds is that Tradeshift can easily adapt and evolve as your needs evolve – making our solution Future proof. Tradeshift naturally lends itself to quick integrations with ERP systems and we are obsessed with providing easy and intuitive solutions.