New workflow management system - WAVE
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1 New workflow management system - WAVE Optimizing the tender preparation process Stinnes Freight Logistics Speaker: Katja Sander Marketing Rail Division 12 October 2006 Stinnes AG, L.MRV, October
2 DB Logistics The global logistics provider organized in 5 business units External sales (bn. ) Transport & Logistics Employees (1,000) Global Player as integrated transport and logistics service provider Presence on all continents with own sites and networks Rail Forwarding and Logistics Rail cargo traffic Intermodal Land transport Air- and Sea freight Bax Contract logistics* Production single car/block train, sales, rail for mining/metals and asset management Sales & Production of combined transport services to operators European land transport External sales (bn. ): 4.4 Worldwide Airand Sea freight External sales (bn. ): 3.6 Worldwide Airand Sea freight (to be integrated) External sales (bn. ): 2.3 Worldwide contract logistics External sales (bn. ): 1.1 External sales (bn. ): 3.4 Employees (1,000): 25.7 Employees (1,000): 47.8 * Including ATG, Intertec, Source: GSL, FLC 2005 Stinnes AG, L.MRV, October
3 Initial situation (I) Old tender preparation process was insufficient and intransparent Customer No standardized processes Sales Receive request Submit offer Many people involved, huge need for coordination Production & Cargo Centre Product Management Int l Rail Management Check feasibility Coordinate pricing Negotiation with foreign railway companies No central support system No seamless communication system Large amount of manual work Low transparency Stinnes AG, L.MRV, October
4 Initial situation (II) Low customer satisfaction according to last survey (2005) Comparison to competitors Time taken for tender preparation in working days Customer perception 2005* Tender preparation can take several weeks Product Railion & partner railways Competitors Customer perception: tender preparation takes too long in comparison to competitors International wagonload International block train ~20 % of rejected tenders result from late submission of offer * Customer satisfaction analysis 2005, survey of logistics managers Stinnes AG, L.MRV, October
5 Project targets and main topics Focus on wagonloads Executing the project to optimize processes and launch WAVE Targets Increased transparency Reduced time and efforts Accelerated processes Process optimization System launch Defining current processes with relevant departments in workshops Identifying optimization potentials and developing standardized processes with acceleration potential Identifying other system-independent potentials Identifying professional and technical requirements and concept generating Programming of system by external IT-service providers and Marketing Rail Pilot and system testing with users Trainings Stinnes AG, L.MRV, October
6 Principles of WAVE Providing technical support for whole process System covers the whole process WAVE Marketing management All users work in one, central system Recorded in a central database Internet Customer enquiry made Assess feasibility Coordinate price Negotiate with foreign railway Produce and submit tender Conclude contract Complete documentation Data basis Statistical evaluations are possible TLR/KTR CAM SD CBED Stinnes AG, L.MRV, October
7 Benefits of WAVE Increased transparency All tenders are entered in one single database Transparency of a tender s process status Statistical evaluations for wide range of marketing analysis Wide range of analysis options via search function Reduced time and efforts Central data storage avoids multiple copies of documents being produced User-friendly, guided data entry Automatic validation/checks (fewer data errors through wrong entries) Automatic production of documents currently produced manually Accelerated processes Process standardisation, some steps can be skipped Shortened variant processes, depending on certain criteria (e.g. scope of contract) Integrated process by avoidance of irrelevant iteration Stinnes AG, L.MRV, October
8 The workflow process Example: Offer generation for national & international wagonload Additional process Check feasibility Cargo Centre Check offer Customer Standard process Receive request Sales Coordinate pricing Product Mgmt. Cost calculation Negotiation with foreign railway companies Int l Rail Mgmt. Finalize and submit offer Sales Generate contract Multiple groups Add information Int l Rail Mgmt. & Production Additional process Interface Stinnes AG, L.MRV, October
9 Functions of WAVE (I) Example: The task list All cases to be processed are managed via a personalised task list Red/amber/green markers indicate delays Reminder for contract expiration dates Stinnes AG, L.MRV, October
10 Functions of WAVE (II) Example: The search function Free search for requests, offers & contracts Date export of search results Identification of identical requests Stinnes AG, L.MRV, October
11 Functions of WAVE (III) Example: Data entry Data is entered only once Secured data entry via short-lists and pop-ups Data validations included Duplication function for similar requests Automated generation of documents Stinnes AG, L.MRV, October
12 Statistical evaluations Example: continuous tracing of sales success Number of requests Offer rate (OR) OR: ratio of offered requests to total requests Offer acceptance rate (OAR) OAR: ratio of accepted requests to offered requests Tracing of both ratios by Stinnes Freight Logistics, market division, salesman and customer Total requests Offered requests Accepted requests Pre-selection of requests by OAR becomes possible Stinnes AG, L.MRV, October
13 Facts & figures WAVE Program architecture: Self-developed Intranet-based Technical components - Browser - Views by java server pages - Webserver (Apache) - Servlet engine (JBoss) - Application server (JBoss) - Oracle 9.x database - Various interfaces (e.g. master data, calculation systems) Project: Costs: approx. 650k Duration: approx. 2 years Team: 3 developer 3 programmer Launch: Release 1.00: Release 1.10: Max. number of users: ~700 Separate hot-line+elearnings 20 different user groups Central administration function Stinnes AG, L.MRV, October
14 Outlook & next steps Upgrading the systems gradually Developing and launching new versions with improved functions and removed program errors Introduce new process shortcuts, e.g. enlarged decision allowance for sales personnel Connecting WAVE with internal, downstream systems, e.g. Invoicing or Contract Administration Perceptively linking customers via Internet with WAVE Discussing about possible applications of WAVE with foreign railway companies within UCIproject EUROSIWAL Stinnes AG, L.MRV, October
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