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Deutsche Post DHL Abandons IT Restructuring Program

Deutsche Post DHL Abandons IT Restructuring Program

Recent report in the JOC http://www.joc.com/international-logistics/logistics-providers/dhl/deutsche-post-dhl-axes-forwarding-unit-it-restructuring-program_20151102.html   mentions Deutsche Post DHL has written off 345 million euros ($380 million) of costs after deciding to abandon their Net Forwarding Environment, a customized IT restructuring program aimed at turning around its troubled global forwarding unit.

DHL said it is now weighing potential alternatives and will implement a step-by-step replacement and upgrade of its IT system.

“This could rely on a flexible IT architecture potentially enhancing and converging existing systems and also incorporating advanced “off-the-shelf” solutions that have been commercially proven within the freight forwarding sector.”

Group CEO Frank Appel said: "In the near-term, DHL Global Forwarding would “pursue the business-centric IT renewal approach that best supports improvements in operating performance, such as enhancing shipment visibility through better capture, management, and display of operational milestones, and reduction of paperwork through greater use of a document management system which has already been proven in our US business.”

The Global Forwarding business will now adopt an “IT renewal approach that best supports improvements in operating performance, such as enhancing shipment visibility through better capture, management and display of operational milestones, and reduction of paper work through greater use of a document management system which has already been proven in our US business”.

It is known that SAP was given the status of Global Technology Partner of the DHL Innovation Centre, placing it among the most important innovation partners of Deutsche Post DHL. http://postandparcel.info/30472/news/dhl-partner-with-sap/    We have not heard what caused the decision to abandon the IT restructuring program but DHL may be looking to other logistics technology providers to upgrade its IT system incorporating advanced “off-the-shelf” solutions that have been commercially proven within the freight forwarding sector as per their statement.

UPDATE:

"Recent media reports suggest there is a connection between SAP and problems with the implementation of a new logistics system at DHL," the company said on Friday. "These statements regarding SAP are incorrect."

Just over a week ago, a story in the German online publication Manager Magazin suggested that DP-DHL might seek damages from SAP and IBM, both of which have been involved in the project.

READ MORE HERE http://www.pcworld.com/article/3010156/sap-dont-blame-us-for-dhls-ailing-logistics-system.html


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