Customer Profitability Casestudy - The Information Factory The Information Factory

Customer Profitability Management

DHL improves yield with customer profitability
management program

The Information Factory provides DHL with an online portal to manage profitability.

“We’ve worked with The Information Factory on a number of projects and knew that their attention to detail, nimbleness and speed of delivery would ensure a successful outcome. The new system has been very successful at improving our margin management process, Pricing and Sales teams enjoy working with it and we’ve expanded the program to review over 1,500 customers globally each year.”

Graeme Aitken, VP of Business Controlling,

Global Costing & Transfer Pricing. DHL Global


DHL’s pricing department used an MS Access/spreadsheet based, highly manual system to identify unprofitable business and then review pricing options to address the problem and return it to profitability. Despite being extremely cumbersome and labour intensive, the project was successful and its adoption across the organisation meant a more integrated and streamlined system was required if DHL was to roll this out more widely.

Requirement

DHL wanted to reduce the time pricing managers spent collating and analysing data manually, so they could increase productivity by expanding the number of accounts under review and focus on corrective actions. They also required greater ability to coordinate the activity centrally via an online portal to ensure data integrity and consistency. This would serve as the main point to share reporting and consistently support managers in their decision making when assessing possible pricing actions.

Solution

  • Replicated the the existing manual process and put it online so that country, regional and global teams have immediate access to the same information.
  • Automation of data entry process has eliminated data errors and significantly reduced the time needed to analyse the available information.
  • Tracking is in real time and an online repository means that DHL can monitor the impact of each pricing action.
  • Consolidated reports are available for each customer. These highlight the different actions that can be taken to improve customer profitability and Sales can now make the appropriate decisions based on a full understanding of the situation.
Dashboard
Diagram

Technical specifications

• VMWare Virtual Server

• OS: Red Hat Enterprise Linux

• DB: Oracle

• Middleware: Apache Tomcat, Java

• Frontend: Angular

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