Merging & integrating IT systems

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1 Merging & integrating IT systems Pierre-Yves LETOURNEL European Technology Summit June, 2005 Amsterdam GEODIS IT Director for Groupage & Logistics Activities

2 The CIO s dilemma New services New Users OrganisationSatisfaction Costs Deployable Quick Global Network focused Cheap Robust Re-usable Which strategy? Clients dedicated Specific Flexible Amsterdam, June 2005 Merging & integrating IT systems 2

3 The CIO s dilemma in T& L sector In the Transportation & Logistics business, this dilemma is important : Integration of services all along the Supply Chain Network versus clients needs Demand for more events driven information Demand for more real-time information Acquisition and/or merging And for Geodis as well which challenges? Which initiatives? Amsterdam, June 2005 Merging & integrating IT systems 3

4 GEODIS Overview Amsterdam, June 2005 Merging & integrating IT systems 4

5 GEODIS Overview GEODIS is the leader in France and one of the top European logistics operators for manufacturing and retail companies. A worldwide network on 120 countries, with subsidiaries in over 40 countries Over 3 million m² of warehousing space 2004 net sales: 3.37bn 22,725 employees Europe Asia and Africa 4% 27% 69 % France Amsterdam, June 2005 Merging & integrating IT systems 5

Load Reverse Logistics Supply Chain Management Grouping together strong

6 GEODIS offer A major international-scale operator On all the logistics supply chain International logistics Groupage and express Full Truck Load Reverse Logistics Supply Chain Management Grouping together strong commercial brands Amsterdam, June 2005 Merging & integrating IT systems 6

7 Strategic Partnerships ELIX, the leading German franchised network for pan-european consolidation. ROHDE AND LIESENFELD, in international, air and transport commissioning as well as in the field of industrial projects ) NET EXPRESS EUROPE, network of European transporters specialising in Express deliveries. Amsterdam, June 2005 Merging & integrating IT systems 7

8 Geodis re-organisation From 1995 to 2001, each branch was mainly focused on one activity and was operating on an European or worldwide scope. New organisation (2001) Geographical and multi-activities Business Units Supported by transversal divisions Geodis Networks Geodis Solutions IT Department, merging all the previous IT departments Amsterdam, June 2005 Merging & integrating IT systems 8

9 Business Incentives and IT Challenges New commercial and operational initiatives Strengthen and develop our core activities Develop our European services Develop Managing Vendor offer and some challenges for the IT Merge several IT departments Develop common standard processes for the IT management Rationalize, build and promote common IT services Imagine and realize new technology-based initiatives Integration services Systems flexibility Monitoring capabilities Amsterdam, June 2005 Merging & integrating IT systems 9

10 Geodis IT organization principles Amsterdam, June 2005 Merging & integrating IT systems 10

11 Geodis IT organization CEO Functional Support Horizon Program Strategic IT master Plan Operations BUs Corporate IT BUs IT Amsterdam, June 2005 Merging & integrating IT systems 11

12 Managing evolutions Application owners : Define and validate the new functional evolutions to be implemented in the applications they manage Guarantee the consistency of the application with regards to the business process IT department : Define technical solutions Manage developments Guarantee the global consistency of the information system Amsterdam, June 2005 Merging & integrating IT systems 12

13 425 IT people Corporate IT : 155 persons Local teams : France: 100 persons Other countries: 70 persons Agreement with IBM Global Services : 100 FTE Amsterdam, June 2005 Merging & integrating IT systems 13

14 Integrate & deliver IT guidelines Rationalize Extend a shared Information Hub infrastructure Rationalize the operational major solutions Rationalize IT production Merge and remodel network Deliver new global services Eurofirst On-board services Reporting solutions Implement quick or specific solutions Web-access services Amsterdam, June 2005 Merging & integrating IT systems 14

15 Extend a shared Information Hub infrastructure Amsterdam, June 2005 Merging & integrating IT systems 15

16 Geodis IT solutions principles 3 fundamentals Collaborate with external parties Customers,Suppliers Business partners, Governmental authorities (customs, ) Operate Network activities In Groupage In Overseas Have for each activity of deep, reliable and flexible functions Reporting / KPI Customs declaration Customs Shipping order Customs Report Shipper Shipping order Hub Groupage Events / Statuses Internal invoicing Scanning Hub Groupage Consignee Supplier Despatch advice Receipt advice Product catalog Delivery order Business partner Event External invoicing Unloading status Event Shipping order Customs Inventory report Customs declaration Customs Report Logistics(GEODIS) Despatch advice Inventory and stock movements External invoicing Client Groupage (GEODIS) Carrier External invoicing Preparation order Transportation order Statuses Internal invoicing Despatch advice Receipt advice External invoicing Overseas FTL Groupage Carrier Amsterdam, June 2005 Merging & integrating IT systems 16

17 Geodis IT solutions principles 3 fundamentals Collaborate with external parties Customers,Suppliers Business partners, Governmental authorities (customs, ) Operate Network activities In Groupage In Overseas Have for each activity of deep, reliable and flexible functions For For each each activity, proven IT IT solutions A common integration framework Integration systems technologies and and skills skills Amsterdam, June 2005 Merging & integrating IT systems 17

18 A 3 layer Information Hub Communication hub hub Receive Receive various various types types of of messages messages Translate Translate and and map map Identify Identify sender sender and and select select recipient recipient Post Post message message on on various various networks networks and and protocols protocols Data Data hub hub Store Store information information embedded embedded in in the the messages messages Data Data model model is is defined defined for for each each activity activity Hosted on on an an IBM IBM mainframe More More than than a million million messages messages a day day Over Over connected connected partners partners Flat Flat files, files, EDI EDI files files (20 (20 types) types) Web Web Services Track Track & Trace Trace Operational Operational Reporting, Reporting, KPIs KPIs Architecture originally designed for for Groupage Extended to to all all Geodis activities Amsterdam, June 2005 Merging & integrating IT systems 18

19 Web services Web Execution Services for clients Prepare and transmit orders Inform and alert on execution (T&T) Print labels Pre-inform Web Reporting Based on the Data Hub and additional data from our operational IT systems, Amsterdam, June 2005 Merging & integrating IT systems 19

20 Rationalize operational major solutions Amsterdam, June 2005 Merging & integrating IT systems 20

Rationalize operational solutions Within the Horizon program Large implication of BUs, Operations Align Offer, Process & IT Describe and define the target on each domain Evolution rather than

21 Rationalize operational solutions Within the Horizon program Large implication of BUs, Operations Align Offer, Process & IT Describe and define the target on each domain Evolution rather than revolution Define target catalogue per per Business activity Groupage, Logistics, FTL, Based on on some existing solutions When needed, implement new new SW SW Overseas Management (LIMS) Amsterdam, June 2005 Merging & integrating IT systems 21

22 IT Architecture Amsterdam, June 2005 Merging & integrating IT systems 22

IT Production Reorganisation of of the the IT IT centers specialization of of the the IT IT centers centers Centralization according to to the the SL SL requirements Implementation of of common

23 IT Production Reorganisation of of the the IT IT centers specialization of of the the IT IT centers centers Centralization according to to the the SL SL requirements Implementation of of common Management and and support support processes Definition of of standard solutions and and interfaces templates for for clients clients services Communication hub IT center Central operational IT center site BU s IT sites Amsterdam, June 2005 Merging & integrating IT systems 23

24 Eurofirst Amsterdam, June 2005 Merging & integrating IT systems 24

25 EUROFIRST Eurofirst : a new Groupage product Through GEODIS subsidiaries and partners With the same service level in all European countries regular definite dispatches; on-line shipment tracking; proof of delivery (POD) via Internet/ /fax within 4 days; a quality performance report standardised operating procedures; a single contact person. Amsterdam, June 2005 Merging & integrating IT systems 25

EUROFIRST IT IT guidelines :: Not Not implement a unique unique SW SW on on all all countries Rely Rely on on the the information hub hub Connect all all SW SW to to the the hub hub Define Define

26 EUROFIRST IT IT guidelines :: Not Not implement a unique unique SW SW on on all all countries Rely Rely on on the the information hub hub Connect all all SW SW to to the the hub hub Define Define common common processes processes Define Define and and validate validate all all interfaces interfaces Extend Extend a common common Web Web services services to to all all customers customers and and countries countries Possibility Possibility to to configure configure services services per per country country Implement Implement a common common Reporting Reporting solution solution Design Design common common KPI KPI management management process process Amsterdam, June 2005 Merging & integrating IT systems 26

27 On board IT solutions Amsterdam, June 2005 Merging & integrating IT systems 27

28 On board IT Tracking of Express shipments in real time Technological innovation in your service Your are informed in real time of delivery events : proof of delivery available within 15 min parcel pictures if it s necessary Amsterdam, June 2005 Merging & integrating IT systems 28

29 On board IT Benefit for the client Transparency 100% of deliveries are track in real time Serenity Good Received Note is immediatly available Pro-activity You can react in real time in the case of hazard events Amsterdam, June 2005 Merging & integrating IT systems 29

30 On board IT Technology : PDAs Transport Management Applications Scan of documents, delivery notes Photos of parcels GPRS connection to the information hub Total and transparent integration into Groupage systems Integration into the Web services Amsterdam, June 2005 Merging & integrating IT systems 30

Electronic Data Interchange (EDI)

A beginner s guide to Electronic Data Interchange (EDI) A non-technical overview for those new to EDI Contents 1. What is EDI? 2. Why do businesses use EDI? 3. How does EDI work? 4. Standardising business