Getting I.T. Right: What forwarders can learn from DHL’s struggle | Air Cargo World
Air Cargo World

No products in the cart.

Subscribe
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Magazine
  • Archives
Tuesday, June 28, 2022
Log In
No Result
View All Results
  • Airports
  • Carriers
  • E-Commerce
  • Express
  • Freight Forwarders
  • Technology
Air Cargo World
  • News
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Past Webinars
  • Podcasts
  • Magazine
  • Archives
Log In
No Result
View All Results
Air Cargo World
No Result
View All Results

Getting I.T. Right: What forwarders can learn from DHL’s struggle

Randy Woods by Randy Woods
June 2, 2016
in Express, Freight Forwarders, Technology
Reading Time: 6 mins read
0
Share on FacebookShare on TwitterShare on LinkedIn
###cat:5719### Frankfurt-180516 Deutsche Post DH/Hauptversammlung 2016 ******************************************************************* copyright by: deutsche post dhl/bernd georg
CEO Frank Appel speaking at the Annual General Meeting 2016 in Frankfurt/Main. Photo by: Deutsche Post DHL/Bernd Georg

No one ever said it would be easy. But few people thought it would be so hard.

DHL Global Forwarding, Freight, the logistics arm of Deutsche Post DHL, had finally determined that it was going to get rid of “Logis,” its legacy IT system that dated back as far as 30 years, patched together from the IT systems of several companies that had been acquired long ago.

Championed by Roger Crook, former CEO of DHL Global Forwarding (DHL-GF), a new system was billed as a key milestone in DHL’s modernization plan, called Strategy 2020. Plans for the new SAP-based enterprise software system, which would cover the length and breadth of the world’s largest forwarding operation, began as early as 2011. DHL even had a forward-thinking name chosen for the system: the “New Forwarding Environment,” or NFE, which was supposed to bring order to DHL’s globe-spanning operations, attract more business and add transparency to the process.

Less than four years and nearly US$1 billion later, the new system was scrapped. Kaput. DHL’s experience offers a cautionary I.T. tale for the air cargo industry, at large.

Phased-in rollout began in New Zealand in 2013, and the first signs of trouble came in 2014. By April 2015, the rollout was halted “temporarily” and Crook stepped down as division CEO. Saying the system just needed some extra tweaks, Deutsche Post DHL said it planned to rescue NFE, but in October 2015, CEO Frank Appel told investors that NFE would be dismantled and removed to make way for a new system – what kind, he did not elaborate. The company took a one-time hit of €345 million for pulling the plug in the third quarter of 2015.

So what happened? For now, DHL-GF won’t say. Air Cargo World asked DHL repeatedly for an interview on the subject, but spokespersons for the company said they preferred not to comment until a new IT system is announced later this year. Most other forwarders and IT experts contacted by ACW also declined to comment on the underlying causes, although a Stifel analysis predicted DHL-GF will “return to a more normal operating structure and use a mix of systems rather than rely solely on SAP.”

However, Ryan Petersen, CEO of U.S.-based forwarding and customs brokerage firm Flexport, said he has an idea about where DHL-GF went off the rails. After speaking with an un-named senior executive from DHL, he said the largest problem was improper change management. “Trying to get tens of thousands of people who are used to running in one direction to suddenly switch and run the other way – it’s a very difficult thing,” Petersen said.

“They haven’t really said why the system was cancelled,” said Chuck Schubert, president of logistics IT provider CSA Software, based in Livonia, Mich. “But it’s a common affliction in customized software deployment that happens more than people want to let on. One thing I can say is that designing software is an art, if not a science. It takes a lot of courage to pull the plug.”

Petersen said he does not envy DHL’s predicament. “I try not to criticize too harshly. I give them all the credit in the world for even trying something this ambitious,” he said. Rather that pointing fingers, Petersen suggested this should be a time to analyze the mistakes, share them with other forwarders and learn from the experience.

In describing the sheer effort involved in DHL-GF’s attempt, Petersen compared the NFE project with Elon Musk’s launching of the SpaceX rocket program – but with a twist. “Now imagine if Elon had to build that same rocket, only it had already taken off,” Petersen said. “It’s already flying and then you hear, ‘Well, we were going to the Moon, but now we’re going to Mars.’”

See sidebar on Panalpina’s SAP rollout

Page 1 of 3
123Next
Tags: CSA SoftwareDescartes Systems GroupDHL-Global ForwardingFeaturesFlexportfrank appelfreightosIT systemsNew Forwarding EnvironmentSAP
Previous Post

French air traffic controllers strike may be put on hold

Next Post

DHL to shoot the moon

Related Posts

Bamboo Airways aims to continue pax-freighter ops as travel recovers
Cargo Traffic

Regional Pulse: Airfreight exports slow in Vietnam

June 27, 2022
Teleport leverages blockchain to connect stakeholders, reduce waste
Technology

Teleport leverages blockchain to connect stakeholders, reduce waste

June 27, 2022
Forwarder’s Forum: Storm warning ahead: Airfreight demand expected to surge as manufacturing resumes in China
Freight Forwarders

Forwarder’s Forum: Storm warning ahead: Airfreight demand expected to surge as manufacturing resumes in China

June 27, 2022
8 US airports undergoing major cargo facility upgrades in 2021
Carriers

Consultant Insight: FedEx credits strong revenue management for Q4 earnings

June 24, 2022
Data transparency to drive sustainability efforts
Technology

Data transparency to drive sustainability efforts

June 24, 2022
Cargo Traffic

Capacity into China improves, but where is the demand?

June 23, 2022
DHL Global Forwarding to establish European hub at FRA
Freight Forwarders

DHL Global Forwarding to establish European hub at FRA

June 23, 2022
Amazon’s Prime Air drone delivery service set to take off
Technology

Amazon’s Prime Air drone delivery service set to take off

June 22, 2022
New security system brings changes to EU imports
Technology

Chartersync to enhance charter e-booking solution

June 22, 2022
Next Post
DHL to shoot the moon

DHL to shoot the moon

Comments 2

  1. Todd Collins says:
    6 years ago

    “Improper Change Management” was perhaps a contributing factor to DHL’s phenomenally misguided and ultimately wasteful IT exercise. But their failure ultimately points to the way large enterprises, in general, still make their IT decisions…due to bureaucracy and fear of picking wrong, the decision makers only look at vendors in Gartners “Magic Quadrant”; Salesforce, SAP, MS Dynamics, IBM…meanwhile, smaller, more innovative vendors and products go unconsidered, even though they may provide more real value, less cost, faster ROI…www.firstfreight.com

    DHL and other giants who have made failed investments in generic CRM platforms or “in-house” solutions may now start to hire leaders who are more comfortable with emerging technologies and who will at least consider the BEST alternatives available.

    All subscribers at First Freight CRM are leading GLP’s and all of them tried had Salesforce, SAP, etc in a prior, unsuccessful chapter…times have changed and only the smartest will survive!

    Reply
  2. Pingback: Freight Forwarders Don't Need Rate Management Systems - Freightos

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM OUR CONTRIBUTORS

Forwarder’s Forum: Storm warning ahead: Airfreight demand expected to surge as manufacturing resumes in China

Forwarder’s Forum: Storm warning ahead: Airfreight demand expected to surge as manufacturing resumes in China

June 27, 2022
8 US airports undergoing major cargo facility upgrades in 2021

Consultant Insight: FedEx credits strong revenue management for Q4 earnings

June 24, 2022
United Airlines launches Eco-Skies Alliance program for sustainable fuel use

Consultant insight: Air cargo market strives to address sustainability

June 17, 2022

SPONSORED

Singapore Changi Airport: Taking your Pharma Business Further - Image 2

Singapore Changi Airport: Taking your pharma business further

November 9, 2021
ULD

CODEX by Virtual Control fills gaps in cold-chain shipment visibility

July 2, 2021
Digitizing the ULD transfer process and protecting shipments with Virtual Control

Digitizing the ULD transfer process and protecting shipments with Virtual Control

May 14, 2021
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

 Manage Cookie Consent

Follow Us

twitter twitter linkedin podcast

© 2022 Royal Media & Air Cargo World

No Result
View All Results
  • News
    • All News
    • Airports
    • Carriers
    • E-Commerce
    • Express
    • Freight Forwarders
    • Technology
  • Data & Tools
  • Events
    • Air Cargo Tech Summit
    • 2022 Webinar Series
    • Cargo Facts EMEA
    • Cargo Facts Symposium
    • Cargo Facts Asia
  • Webinars
  • Podcasts
  • Magazine
  • Archives
  • Subscribe Test
  • Log In / Account

© 2022 Royal Media & Air Cargo World

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Powered By MemberPress WooCommerce Plus Integration
THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
AWSALBCORS7 daysThis cookie is managed by Amazon Web Services and is used for load balancing.
cf_use_obpastCloudflare sets this cookie to improve page load times and to disallow any security restrictions based on the visitor's IP address.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
CRAFT_CSRF_TOKENsessionThis cookie is set by the provider Craft CMS. This cookie is used for the purpose of website security that is Cross-Site-Request forgery prevention whenever a form is used.
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
bcookie2 yearsLinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie2 yearsLinkedIn sets this cookie to store performed actions on the website.
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
langsessionLinkedIn sets this cookie to remember a user's language setting.
li_gc2 yearsLinkedIn uses to store consent of guests regarding the use of cookies for non-essential purposes
lidc1 dayLinkedIn sets the lidc cookie to facilitate data center selection.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
AWSALB7 daysAWSALB is an application load balancer cookie set by Amazon Web Services to map the session to the target.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_dc_gtm_UA-1038974-181 minuteUsed to help identify the visitors by either age, gender, or interests by DoubleClick - Google Tag Manager.
_fbp3 monthsThis cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr3 monthsFacebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
ig_putmasessionNo description
Save & Accept
Powered by CookieYes Logo
Go to mobile version