e-Billing in DHL

SSOW
Amsterdam, 10th May 2011

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 2

Background
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
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 3

Dual e-Billing Solutions

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

Buyer Co. Profile

High

Large Businesses

EDI
Low

Transactions
Per Invoice

Mid-Size Businesses
No of
Customers

High

Low

Web /
E-Mail
(Biller Direct Model)

Small Businesses

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 4

Solution Overview

Standard
EDI
Agents

Gateway
Billing
Extracts

Consolidation
Standardization

EDI
Message

Custom
EDI

Customer

Enrichment

Accountis
Web/Email

Legend
EDI Stream

Other

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

Page 5

Invoice Email PDF Attachment

PDF Invoice Attached

Hyperlink to website

Marketing Banner

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

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Invoice Data Download

Multiple download options

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

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Registering Queries

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

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Backup Paperwork Request Airwaybill

Active Reference
3949665263

Click through to AWB Images

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 9

Backup Paperwork Provide Airwaybill Image

3949665263

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 10

Enhanced Search and Download

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 11

Benefits: For the Biller

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 12

Benefits: For the Customer

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 13

Status - Deployment

IS
SE

FI

NO

EE
Legend :
IE

LV

DK

Live with Customers

LT

GB

Implementation Phase
NL

2011

BE

PL

DE
CZ

SK
FR

AT

CH

HU
SI

RO

IT
PT
ES
BG

GR

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 14

Status - Conversion

2010/2011 Conversion Rate

160,000

151,449

90%

104

YTD :

276

In 2010:

790

Prev. years :

576

129,364 127,657

120,000

123,349

129,245
80%

109,340

100,000

89,982
82,157

87,729

92,863

96,377

70%

97,054
60%
50%

80,000
60,000

26.0%

29.6%

26.3%

24.2%

26.5%

25.9%

27.6%

30.3%

28.8%

32.3%

32.5%

34.3%

40%
30%

Conversion Rate

This month :

Number of e-invoices

140,000

Number of trees spared

100%

40,000
20%
20,000

# of e-invoices

151,449

10%

0%
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

E-invoices VS
all invoices %

34.3

Target %

50 %

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Number of e-invoices

Conversion rate

Page 15

Challenges

Gaining Commitment
From Internal Customers
From External Customers

Why ?
Confusion about legality
Uncertainty about benefit realisation
Complexity of current landscape
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 16

Challenges - Legislation

Gaining Commitment
From Internal Customers
From External Customers

Why ?
Confusion about legality
Uncertainty about benefit realisation
Complexity of current landscape
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 17

Current VAT rules on electronic invoicing

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

E
S

S
E

U
K

C
H

N
O

2A

2B

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 !
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 18

Challenges Benefit Realisation

Gaining Commitment
From Internal Customers
From External Customers

Why ?
Confusion about legality
Uncertainty about benefit realisation
Complexity of current landscape
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 19

Challenges Benefit Realisation

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..
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 20

Challenges Benefit Realisation Size of an Invoice

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 21

Challenges Benefit Realisation Size of an Invoice

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 22

Challenges Benefit Realisation

Cost Saving
Reduce contact centre queries

Click through for backup documentation

DSO Reduction
Faster, more accurate delivery of invoices

Online dispute initiation

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 23

Challenges Benefit Realisation

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 24

Going Forward - Building on the basics

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 25

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 26

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 next
Reporting and analysis
Invoice +

- enriching the invoice with additional information

Invoice push

- moving towards an automated solution, replacing EDI

Weekly billing
Payments !!!
.....

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 27

Going Forward Dynamic Dashboard

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 28

Going Forward Dynamic Dashboard

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 29

Going Forward Dynamic Dashboard

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 30

Outlook and Strategy

Serves up
2,000,000,000
videos per day !
Twitterers Tweet 750
times per second

People post 2.5 billion

photos on Facebook
every month

Internet Traffic is Growing by 40%

per annum

Since 2000, 72 American

newspapers have folded

95% of all music

downloads are illegal

Circulation has fallen by a

quarter since 2007
Source: Economist
th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 31

Outlook and Strategy

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. ???

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 32

Outlook and Strategy

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 its own right

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 33

Outlook and Strategy

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

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 34

Outlook and Strategy

The future is bright.

the future is yellow

The future is e !!!!

th May
e-BillingOTC
in DHL
E++| Deployment
Amsterdam |10
Project
Introduction
2011
v0.1.ppt

Page 35