With such a huge geographic spread, how is IT used to ensure seamless customer experience?
Indeed it is quite a challenge, as we deliver millions of items across the globe on a daily basis. While we do understand that every customer has unique needs and one size cannot fit all, yet there are a few generic processes that are common to most customers. We have picked out those processes and built solutions around them. Take for instance supply chain management, the general requirement would be to ensure delivery of raw material to manufacturing facility and movement of product to the warehouse, etc. Thus, we have a logistics solution catalog from which the client can chose the services.

From the IT perspective, we have developed B2B integration capability, thereby linking our own system with that of our clients. Through the use of innovative technologies like XML, we have readymade solutions that can be customized for any logistic requirement. Over the last many years, we have built IT solutions around these four to five major components. The basic premise of IT is to add value to key process areas like project management. So, for instance, as soon as we deliver raw material to a company X, our system immediately updates the companys ERP, thus cutting down on the turnaround time.

Most of the acquisitions are done for people and know-how, as much as they are done for scale and financial reasons

At DHL, we are very close to our customers, and constantly working at ways to improve our service. Web plays a very important role in the delivery of service. If the twentieth century was of ERP and inter-company networks, the twentyfirst century is of collaborative technologies and intra-company networks. With most companies working on a global scale, B2B integration is a critical part of the management process. And, this is where path-breaking technology comes in the picture.

DHL has been quite a heavy user of RFID technology. Do you think RFID will replace barcodes in the coming years?
There will always be new technologies in the marketplace and they would replace the old ones. It is a long process, as different customers embrace technology at different pace. Keeping that in mind, I believe that barcode will be with us for a long time to come. But, RFID is quite an interesting technology and has lot of potential. There could be many solutions built around RFID, like tighter integration of the supply chain, more secure processes, etc. In the coming years, while the two will co-exist, as the information standards evolve, I see RFID being used more exceedingly.

There are close to 300,000 people in DHL. How do you manage such a large workforce that is spread across the globe?
Indeed, we have 160,000 in DHL Logistics alone. A lot of our internal processes are based on applications, like HR systems, recruitment systems, etc. We also have a corporate intranet in place, through which we are able to pass message to our employees easily and consistently. We also run a whole lot of Web conferences for employees, and then you always have the audio and video conferencing tools.

How hard is it to nurture innovation in a company of such size?
It is hard, but very much possible. Now that we have the integration behind us, we will be focusing more and more on innovation and investing time and money on the same. We already have an innovation center in place and also tied up with research organizations and academic institutions to drive innovative technologies. There are quite a few projects we are working on, for instance how will nano-technology impact supply chain or the impact of the green agenda. We actively encourage our employees to be a part of these projects. You need to keep in mind that some of it (drive for innovation) can be managed as a process (pipeline of projects), and part of it is culture of the organization. Fortunately, Deutsche Post has a very good culture for innovation.

What is your take on outsourcing?
Personally, I think every organization needs to figure out its core competencies and concentrate solely on them. Take the case of DHL Logistics, we are a logistics company and not an IT organization, thus we focus our energy on our business and lots of our generic processes are outsourced. There is a broad-level policy on the same at Deutsche Post. For instance, legal processes, financial processes, generic service segment, etc are best done by experts. In most of the aspects, we prefer to buy than build. And we use supply side services either with third party or shared service. Even in the application space, it makes sense that we outsource the same to experts. Thus, I have worked closely with Indian IT companies like Wipro and Infosys in building supply chain forwarding systems. The reason to outsource was part cost and part quality.

How has the role of the CIO evolved over the last many years?
The CIOs role and responsibility has changed much in the past many years and it continues. Today, the CIO is not only limited for a companys technological prowess but also is an important partner in a number of business processes like integration (M&A), influencing external customers, and employee management. There are lot many dimensions to the role now and a whole lot of expectations. I think that a CIO needs to be a good visionary, with an eye on the future and a firm hand on the current things. In todays world, technology is not only a differentiator but also an enabler. I feel a CIO now is more a board level coach, looking at where things are and where it needs to be.

Shashwat DC
shashwatc@cybermedia.co.in

Page(s)   1  2