Corporate Services. Frank Appel, Board Member, Deutsche Post World Net
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1 Corporate Services Frank Appel, Board Member, Deutsche Post World Net
2 Agenda Overview on Corporate Services of DPWN Our Services in Detail Next Step: Partner & Challenger of the DPWN business units Frank Appel, Capitel Market Day, Bonn, Page 2
3 Corporate Services of Deutsche Post World Net Deutsche Post World Net Corporate Center create value through support and challenge MAIL EXPRESS LOGISTICS FINANCIAL SERVICES deliver world class bottom line results Corporate Services offer world class services to our businesses Frank Appel, Capitel Market Day, Bonn, Page 3
4 Our Corporate Services Portfolio Corporate Services Legal Services, EXPRESS, LOGISTICS, Risk LOGISTICS IT Services Corporate Services Portfolio Legal Services Risk and Insurance Corporate Legal, MAIL, FINANCIAL SERVICES Corporate Procurement Procurement Corporate Services Fleet Corporate Services Germany IT Services Real Estate Shared Maintenance Service Frank Appel, Capitel Market Day, Bonn, Page 4
5 Facts & Figures on Corporate Services DPWN Around 9,000 Corporate Services Employees Worldwide Global Coverage Geographic presence on all continents: - Corporate Center in Bonn - Regional & local offices around the globe ~ 100 FTE Legal Services ~ 400 FTE Procurement ~ 2,500 FTE Corp. Services Germany ~ 6,000 FTE IT Services Managed Costs EXAMPLES Procurement: ~ 6 bn* Corp. Services: ~ 1 bn Germany IT Services: ~ 2.5 bn Group-wide Corporate Services standards in more than 220 countries * excluding transportation services Frank Appel, Capitel Market Day, Bonn, Page 5
6 Corporate Services of Deutsche Post World Net Our Vision We are service partner for and challenger to all business units of DPWN. Our common goal is to help our business units win in the global marketplace by providing them with cost optimised, high quality services that give them a competitive edge. In order to reach this goal and to become our customers` partner of choice we need to consistently deliver quality results effectively and efficiently. Frank Appel, Capitel Market Day, Bonn, Page 6
7 Corporate Services of Deutsche Post World Net Our Vision Joint Service Dimensions 1 Effectiveness ( Do the right things ) Offer services that meet our customers specific needs while maintaining a clear focus on delivering value at a group level 2 Efficiency ( Do things at the right cost ) Clear commitment to profitability (transparent and tight structures, cost management focus) 3 Quality ( Do things well ) Defined performance standards (KPIs) on a high level Service Level Agreements with our customers Frank Appel, Capitel Market Day, Bonn, Page 7
8 Agenda Overview on Corporate Services of DPWN Our Services in Detail Next Step: Partner & Challenger of the DPWN business units Frank Appel, Capitel Market Day, Bonn, Page 8
9 Our Legal Services Our Services Portfolio Legal Advice EXPRESS & LOGISTICS Support M&A, Merger Control Corporate Legal Services Legal Services Legal Advice MAIL Legal Advice IT, Procurement Major Achievements in 2004 Comprehensive, qualified legal support for all business units (e.g. Postbank IPO and M&A deals) Group-wide risk strategy defined Increased cost transparency/significant cost savings in 2004 Challenges Ahead Competition Law Risk and Insurance Mgt. Full transparency of legal and risk costs worldwide Continuing legal support for major M&A or business critical projects Frank Appel, Capitel Market Day, Bonn, Page 9
10 Our Procurement Services Our Services Portfolio IT & Communications Services (e.g. media, travel) Ground Fleet Corporate Procurement Real Estate Production Systems Network Supplies Major Achievements in 2004 Significant savings contribution (> 100 m incremental savings) Reorganization of Procurement Europe, Americas and Asia Pacific started Structured processes and standards in place Challenges Ahead Materialize further savings potentials Enhance category management and procurement matrix organisatioin throughout the whole group Frank Appel, Capitel Market Day, Bonn, Page 10
11 Our New Global Procurement Organization Concept Regional Procurement Organizations Germany Europe/ EMA Americas Asia Pacific Sourcing Category A Category B Category Based Strategic Sourcing Category n Standards & Tools Performance Organization & Communication Global Standards & Tools Global Performance Systems Mirrored Organisations / Informed Staff Build Country Organisations & Support Corporate Activities Frank Appel, Capitel Market Day, Bonn, Page 11
12 Our Corporate Services Germany Our Services Portfolio Major Achievements in 2004 More transparency and realized savings Shared Maintenance Claims Corporate Services Germany Fleet Real Estate Various initiatives in fleet management started (e.g. Corporate Fleet ) Challenges Ahead Achieve best-in-class costs for all service units without quality reduction Effective performance measurement (based on Service Level Agreements) Further internationalization Frank Appel, Capitel Market Day, Bonn, Page 12
13 Our IT Services Our Services Portfolio IT Strategy DPWN Applications IT Services Portfolio IT Cost Major Achievements in 2004 Renegotiation of outsourcing contract with T-Systems in Germany Established Corporate-wide license management Opening of new Global IT Services Center in Prague Developed applications roadmaps Infrastructure Services Global IT Help Desk Challenges Ahead Complete the transformation of the IT organization Further steps towards more customerdriven global IT support and seamless integration into customer supply chain Frank Appel, Capitel Market Day, Bonn, Page 13
14 Our New IT Concept as of 1 January 2005 Clear Cut between Demand and Supply Tasks Business Requirements IT DEMAND CIOs of the Business Units IT Strategy -Architecture -Technology -... IT Demand Planning and Portfolio Supply and Demand Investments and Costs Life Cycle of IT applications and platforms Application Agreement Application Development Infrastructure Services SUPPLY DPWN Supply Services Application Operations Infrastructure Services Infrastructure Operations and Frank Appel, Capitel Market Day, Bonn, Page 14
15 Our New IT Concept as of 1 January 2005 New IT Organisation of Deutsche Post World Net Board Member Corporate Services Chairman of the IT Boards CIOs of the divisions (directly reporting to the respective board member) CIO Mail CIO Express CIO Logistics CIO Retail CIO Corporate Functions IT Board Escalation and highest decision body Head of IT Services CIO Postbank (assciated member) Consensus approach in different expert committees Frank Appel, Capitel Market Day, Bonn, Page 15
16 Agenda Overview on Corporate Services of DPWN Our Services in Detail Next Step: Partner & Challenger of the DPWN business units Frank Appel, Capitel Market Day, Bonn, Page 16
17 Summary & Continuous Challenge Corporate Services: Partner & Challenger of the Business 1 Focus on value at a group level Balance scale and complexity 2 Drive standardisation Compliance through organisational Structure 3 Offer what internal customers need Transparent Service Level Agreements 4 Help internal customers save Transparent costing 5 Strive for the best possible performance Benchmarking Frank Appel, Capitel Market Day, Bonn, Page 17
18 Corporate Services Frank Appel, Board Member, Deutsche Post World Net
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