04_AUD_DHL_tcm231-110047

©2013 Software AG. All rights reserved.

Dr. Jürgen Jung, DHL Global Forwarding

Using ARIS for Process Standardization in DHL Global Forwarding

©2013 Software AG. All rights reserved. 2 | 2 |

Agenda

Deutsche Post DHL – Group and Brand DHL

Context, Approach and Concepts

Summary

Challenges and Lessons Learned

©2013 Software AG. All rights reserved. 3 |

We Are One Company With Two Strong Pillars

The postal service for Germany

The logistics company for the world


Group Structure 2012

• Delivers more than 64 mn letters and 3 mn parcels to more than 40mn house-holds in Germany

• Over 20,000 retail outlets and points of sale

• 82 mail and 33 parcel centers in Germany

• DHL Global Mail largest network for mail distribution worldwide

• Global market leader in airfreight and among top two leading ocean freight services

• Specialist in industrial projects and end to end transport management solutions

• One of Europe’s leading road freight forwarders

• More than 850 branches in Global Forwarding

• More than 160 branches in Freight

• Strong customer base (>50% of Forbes 500)

• Global market leader in contract logistics with 7.8% global market share

• ~23mn square metres of warehouse space

• 2,400 logistics centers, warehouses and terminals

• Leading provider of corporate information solutions worldwide

• Strong customer base built on long-lasting partnerships

• Market leader in the inter-national time-definite express market in all regions outside the Americas

• Presence in more than 220 countries and territories

• 36,750 service points • 31,500 vehicles • 3 main global hubs

Mail Global Forwarding, Freight Supply Chain Express


DHL – Products, Services and Solutions

Airfreight and Ocean Freight Services

Europe-wide Transportation

Contract Logistics and Industry Solutions

Export, Import and Domestic Products

Global Forwarding, Freight Supply Chain Express

• Airfreight

• Ocean Freight

• Multimodal

• International Supply Chain

• Industrial Projects

• Customs Brokerage

• Transport Control Towers

• Lead Logistics Provider

• Niche (high value, fashion, perishables and motor sport)

Time Definite

• DHL EXPRESS 9.00, 10.30, 12.00

• DHL EXPRESS WORLDWIDE

• DHL EXPRESS ENVELOPE

• DHL EXPRESS EASY

Same Day

• DHL SAME DAY

Day Definite

• DHL ECONOMY SELECT

Plus additional Services (e.g. Global Trade Services) and Solutions (e.g. DHL MEDICAL EXPRESS)

Supply Chain Solutions

• Warehousing

• Distribution

• Managed Transport Service

• Value Added Services (e.g. packaging, technical services, procurement)

Information Solutions

• Marketing Solutions

• Correspondence Management

• Office Document Solutions

Flexible and customized road and intermodal transportation network

• Groupage

• Part Loads

• Full Loads

• Rail Transportation

• Customs Services

• Trade Fairs and Events


DHL Global Forwarding, Freight – Coverage

• ~8,200 employees

• 18 countries

• 294 locations (offices + operational sites)

• 22 highly secured locations

Americas


• 62 countries



EMEA


• 50 countries



Freight (Only Europe)


• 20 countries



Asia-Pacific


DHL Global Forwarding – Insight • World’s No. 1 in air freight and No. 2 in ocean freight

• Presence in more than 150 countries and territories

• Approx. 30,000 employees worldwide

• 850 terminals, warehouses and offices

• Air freight volume1) 2012: approx. 2,327,000

• Ocean freight volume2) 2012 approx. 2,840,000

• Services and products:

– Air freight

– Ocean freight

– Industrial projects

– International Supply Chain Management

– Customs brokerage

– Cargo Insurance

1) export tons; 2) in TEU’s (Twenty Foot Equivalent Unit)


Agenda



Summary



Context The „NEW FORWARDING ENVIRONMENT“ Program makes sure that we stay on track and increase our pace to win the race!

Business transformation IT transformation

Business objective: • NFE will introduce improved processes that

satisfy our customers needs and support our daily work including:

– Greater visibility of shipments

– Providing a standard product catalogue

– Increasing focus on the customer

– Global alignment of our business

IT objective: • NFE will implement a new operating IT system

to

– Support our business requirements

– Allow for greater flexibility in dealing with the customer

– Increase the level of automation, visibility and control

NFE is a business and IT transformation which introduces a new business model and replaces the former IT operating systems


• Identification of as-is pain points

• Distributed definition of to-be processes and innovators

• Development of business object model

• Identification of business requirements Dedicated process

teams

To-be vision development

High-level Approach

• Create project plan and org. structure

• Define modeling methodology

• Prepare high-level processes

• Team onboarding

Project Preparation

• Detailed process definition

• Design of to-be organization

• Identification of system requirements

• Customization based on SAP Ascendant Method Shared with business

and System Integrator

Refinement and SAP customization


Motivation for standardized Modeling Approach

Application

Name Description Status ShortName ICT Objekt Version StratDate EndDate Variant ObjectState Domain

OrgaUnit

Name Description Status ShortName Contact isExternal

Component

Name Description Status Vendor Version ICTObject ShortName StartDate EndDate ObjectState Type Services Technologies Domain

Device

Name Description Status Version Location ShortName StartDate EndDate ICTObject ObjectState IsPhysical Cluster DeviceType

Role

Name Description RoleType Object Responsible

BusinessProcess

Name Description Status ShortName LevelID Version Domain

Stack

Name Description Status ObjectState StartDate EndDate

Deployment

Name Description Status StartDate EndDate ObjectState

CostCenre

Name Description Status Owner CostTypes EqualAllocation CostcenterType StartDate EndDate ERPCostCenterID ERPInstanceID

CostType

Name Description

Cost

Instguid Scenarioid Monetaryunit Money Objectid Costtypeid Costcenterid Type Costobject

People usually got their own cultural, political or professional background so that they often appear to speak different languages. This may hamper communication even if the people work in the same area.


Business Process Models as a Common Language Business process models are a well-established abstraction for different participants and can therefore help to resolve language barriers.


Approach: Four-level Process Decomposition

E2ELevel 1: End-to-end processes

Level 2: VAC

Level 3: VAC

Level 4: EPC

Predefined during preparation


Approach: E2E Processes for Process Definition

Customer Need

Business Object

Fulfillment of Customer

Need

The notion of an end-to-end process facilitates business process modeling by defining the process according to a customer-to-customer view

focusing on the flow of a single business object from start to end

offering a cross-functional view on business processes

Examples Contact-to-Contract (C2C)

Order-to-Cash (O2C)


Approach: Example E2E processes

Contact-to-Contract

Order-to-Cash

Requirement-to-Pay

Pickup-to-Delivery

Marketing & Sales

Order Management

Procurement

Operations


Agenda



Summary



Levels of Abstraction – Examples

Contact-to-Contract

Order-to-Cash

Requirement-to-Pay

Pickup-to-Delivery

End-to-end processes • Avoid redundancies • Clear E2E responsibility • Focused on business object

Scenarios • Describe real world flows • Show flow across

organizational units


Levels of Abstraction – Discussion

Rather abstract with respect to process design

Focus on business object with clear customer-centric responsibility

Reduce redundancies with respect to process definition

Well-established in other area (e.g. Enterprise Architecture)

Proved helpful during process design

Very specific with respect to real world flows known by business people

Cover all data involved across organisational units

Contains redundancies as similar steps are executed repeatedly

Suitable for discussing processes with business experts

Proved helpful during test case definition

Scenarios E2E processes


Role-based Alignment – Example

Tasks/ Applications: • RTP Transaction code ME22…. • RTP Task 21.2: Create Purchase

Requisition

• BR-RTP-99 Purchase Requisition Creator

• BR-RTP-74 Goods Receipt Creator

Level 4 ARIS process

Application Tasks Manual Tasks Interface Tasks

Business Role

Job Profile Job Profiles: • JP-RTP-AA Purchase Manager

Business Roles:


Role-based Alignment – Discussion

Modular design generally fosters reuse and reduces redundancies

• Reuse of training modules for different job profiles

• Support for authorization if business roles are mapped to SAP authorization objects

Check for compliance once on business role level

Drives standardization of job profiles

Modular design only beneficial if supported by down-stream systems

• Training system has to support such modules

• Not all SAP modules support authorization objects on business role level

Compliance check difficult because on a rather abstract level

Drawbacks Benefits


Business Rules: Example


Business Rules: ARIS Conventions

Check Order forCompliance Compliance Rule

Function Business Rule

Currently: Excel

BRF+

via URL

Target: BRF+


Business Rules – Discussion

Lightweight extension to process: Only rule header is stored in ARIS

No redundancies as rules will be stored in BRF+ as decision tables

Excel offers simple way for gathering business rules with business users

Contents not in ARIS

• No relationship to objects in ARIS (e.g. UML classes)

• Separate access control

Not standard method

• New symbol (for object type IT function) and semantic definition

• Not supported by standard functionality

Drawbacks Benefits


Testing: Methodology Overview

4 Creation of connected individual test cases, each with defined input and expected output based on level-4

5 Execution of each test case and check for expected output

….

Task End product

1 Generation of high level overarching business scenarios based on ARIS level-3 processes

2 Provision of additional key aspects and joined refinement and detailing based on level-4

Detailed business scenario

3 Separation into parts for e2e teams with defined handover points (), e.g., for data handover C2R T2C ... …

Input Output

High level business scenario

….


Testing: High level scenario – Example


Testing – Discussion

Testing processes and not only the system

High-level scenarios are modeled in ARIS

Approach fosters …

• Completeness

• Traceability (requirements are derived from processes)

Only few redundancies as detailed scenarios and test cases are defined in HPQC

Contents only partially in ARIS

• No relationship of test cases to objects in ARIS (e.g. UML classes)

• Separate access control

• Manual updates in case of changes

Not standard method

Effort for describing details based on processes is tremendous

Drawbacks Benefits


Model Ownership – Discussion

Relevance of to-be process models well accepted

Shared responsibility for all processes

Limited number of users to be trained in ARIS

BUT

Processes might not be accepted by business (need for strong sponsor)

Business expertise for defining own to-be process

BUT

Silo thinking as organizational units take over only their to-be process

Tendency for focussing on goal (SAP implementation) instead of processes

Some people are not used to understanding process models

“Eternal training effort”

Ownership with business Ownership with core team


Agenda



Summary



Thank You for Your Interest and Time

Dr. Jürgen Jung Head of Business Modeling

DHL Global Forwarding Johanniterstr. 1 53113 Bonn Germany

Phone +49 228 182 19131 Mobile +49 160 531 4352 Mail [email protected]

04_AUD_DHL_tcm231-110047

Documents

dhl global forwarding

day dhl

dhl products

global trade services

global market leader

secured locations freight

global market share

software ag