Case Study: DHL Shifts Left With CA Application Performance Management to Boost Quality of Service

Case Study: DHL Shifts Left With CA Application Performance Management to Boost Quality of Service

Joe Butler

DevOps: Agile Ops

DHL

Global Head of Integration Services

DO5T24S

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Abstract

Quite often it is a select few IT experts in an IT organization that are most sought

after when troubleshooting needs arise. What if you could spread that scarce

expertise throughout your IT team and protect those experts? Joe Butler, Global

Head of Integration Services, DHL, has made that a goal during his 12-year tenure

at DHL and recently found that CA Application Performance Management 10 may

help in that cause. Butler oversees Service Delivery for Integration globally for

DHL Supply Chain, which supports 1,200 customers globally with more than

12,000 interfaces and manages more than 4 billion transactions each year.

Butler's approach to ‘shift left’ means arming his Level 1 teams with the ability to

better triage issues before they ever reach Level 2 technicians. Join this session

and learn how APM can help protect your IT experts while ensuring the

application uptime and quality standards expected by one of the world’s largest

logistics company.

Joe Butler

DHL, Global Head of Integration Services

"SHIFT LEFT" WITH CA APPLICATION PERFORMANCE MANAGEMENT

DHL SUPPLY CHAIN

PUBLIC

November 2015

Boosting Quality of Service for Enterprise Services

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5Boosting Quality of Service| CA World | 18 November 2015

1 DPDHL and DHL Supply Chain

Company Background

2 DSC IT Functions

How IT Supports the Business

3 Challenges

Time, Cost and Quality

4 How CA APM came to DHL

Our Selection Criteria and Process

5 Our Vision in the DevOps Cycle

How to Leverage emerging Tools and

Technologies

Agenda

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6


Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda

Boosting Quality of Service| CA World | 18 November 2015

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7

DPDHL Group of Companies

DHL Supply Chain is part of the Deutsche Post DHL Group with a global

network and an extensive logistics portfolio

1) 2014 figures; Including Corp. Center/Other/Consolidation

Employees: ~ 488,000/Revenue: EUR 56.6bn1)

One team: Professional, diverse,

and in tune with market needs

Focus on governance/ownership tasks

Stand alone divisions connected by a

common management approach

Joint key account management and

focused shared service unit

One global team

Lean corporate center

DHL Customer Solutions & Innovation

Selective group-wide shared functions and services

EXPRESS

GLOBAL

FORWARDING,

FREIGHT

SUPPLY CHAINPost – eCommerce – Parcel

(PeP)


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Solid Operational Performance in a Challenging Macro Environment

Financial year 2014 divisional overview

Revenue EBIT1)

FY 2013 FY 2014 Change FY 2013 FY 2014 Change

PeP 15,291 15,686 2.6% 1,286 1,298 0.9%

EXPRESS 11,821 12,491 5.7% 1,083 1,260 16.3%

GLOBAL FORWARDING,

FREIGHT14,787 14,924 0.9% 478 293 -38.7%

SUPPLY CHAIN 14,227 14,737 3.6% 441 465 5.4%

CORP. CENTER/OTHER

AND CONSOLIDATION -1,214 -1,208 -0.5% -423 -351 -17.0%

GROUP 54,912 56,630 3.1% 2,865 2,965 3.5%

in EUR mn


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Proven Framework and Focused Strategic Plan 2020

DPDHL Group corporate framework continues

The postal service for Germany

The logistics company for the worldVision:

Mission: Excellence. Simply delivered

Purpose: We connect people, improving their lives

Guiding

Principle:Respect & results

Goals: 3 Bottom Lines & Living Responsibility

Our strategic plan

Focus

Connect

Grow

Strategy 2020:

Investment

of Choice

Provider

of Choice

Employer

of Choice

Living

Responsibility


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DHL Supply Chain Strategy 2020: Focus.Connect.Grow.

DHL Supply Chain Strategy 2020 – Three pillars

Define the logistics industry globally through standardized,

cost efficient, high quality and innovative solutionsVISION

Shift the portfolio – sectors,

products, geographies…

Grow

Create an effective

organization globally…

Connect

Drive standardization and

reduce complexity…

Focus


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DHL Supply Chain – Number One Global Contract Logistics Provider

1) Market share more than 3 times higher than No. 2; Highly fragmented market estimated at EUR 168bn; top 10 players account for about 21% of the overall market;

2) Countries with significant supply chain revenue, DPDHL is present in more than 220 countries and territories; 3) Square meter warehousing space

● Excellent operations and innovative

solutions across the supply chain

● Supply chain solutions based on

industries’ requirements and needs

● Network of approx. 146,000 experts in

56 countries and territories

● >13.7 million square meters warehouse

space

● Global market leader with 8% market

share1)

● EUR 14.7bn in annual revenue in 2014

DHL Supply Chain presence

Getting you ahead

of your competitors

AHEAD

industry sectorsKEY

• Energy & Chemicals // Automotive

Technology // Engineering &

Manufacturing // Retail // Life Sciences &

Healthcare // Technology // Consumer

13,740,0003)

Square meter

1,600Customers

2590Locations

~146,000Employees

# of countries2)

Americas >13

APMEA >22

Europe >21

Revenue split | %

Americas 26

APMEA 14

Europe 60

Other DPDHL Group operations


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Williams Lea Group – World Leader in Business Services

Americas >5

APMEA >8

Europe >26

# of countries

>600Customers

58Locations

~11,000Employees

Getting you ahead

of your competitors

AHEAD

industry sectorsKEY

• Life Sciences // Financial Services //

Automotive // FMCG/CPG // Retail //

Apparel // Financial Services // Legal //

Investment Banking // Public Sector

● Operating as two global businesses

specializing in information and

communication management and

marketing efficiency

● Williams Lea transforms the way

organizations manage their business

services in the public and private sectors

● Tag is a global brand execution agency

that manages global communications

campaigns for brands and their creative

partners

● Network of approx. 11,000 employees

in >36 countries

● EUR 1.4bn in annual revenue in 2014

Revenue split | %

Americas

APAC

EMEA

40

7

53

Williams Lea operations Other DPDHL Group operations


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DHL in Gartner’s Global 3PL Magic Quadrant Study 20141)

DHL is positioned in the “Leaders” quadrant of the global 3PL magic quadrant study 2014

by Gartner, Inc.

Challengers

Niche players

Leaders

Visionaries

Completeness of vision

Ab

ility

to

exe

cu

te

DHL

Kuehne+Nagel

DB Schenker

Agility

UTi

SDV

Pantos Logistics

DSV Damco

Ceva

UPS Supply Chain Solutions

Expeditors

Source: Gartner (May 2014); 1) Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only

those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organizat ion and should not be construed as statements of fact.

Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose

Key strength of DHL

• Wide range of industry-leading solutions

across DHL’s focus sectors

• Global reach of 3PL capabilities

(220+ countries)

• High-performing services across DHL

• Strong understanding of market dynamics and

execution along evolving customer/industry

needs

• Track record in executing on solution design

• Forward-looking talent management

• Robust technology platforms

• Healthy financial position


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Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda


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We Customize Our IT Solutions to Meet Your Needs

We offer world class IT products, customized to meet your needs and manage your risk,

allowing you to manage your business more effectively

You


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Our Building Blocks


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Connecting Our IT Resources and Customers – "DHL LINK"

Warehouse

Mgt Systems

Transport Mgt

Systems

Analysis &

Reporting

Finance

Systems

Manufacturers

Suppliers

Customers

Carriers

Purchase

Orders

ASNs

PODs

Production

Forecasts

Inventory

Reports

Carrier

Instructions

Warehouse &

Transport KPI

Reports

W’hse &

Transport

Billing

Transaction

Visibility &

Alerts

DHL Ops Users

Key Facts & Figures

Serves > 1,200 customers

globally

Guaranteed message

delivery & audit trail

> 12,000 interfaces Service availability1:

99.99%

Manages > 4 billion

business transactions p.a.

Industry-standard adapters

for connectivity

Integrated with >100 DHL

systems

Strong encryption &

security


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DHL LINK Our - Value Proposition


• Seamless integration between the customer and DHL

• Guaranteed message delivery

• Reliable, high quality service.

• Flexibility and scalability to support evolving business needs

• Any to any message transformation with the flexibility to satisfying varied customer integration requirements.

• System architecture ensures no messages lost. Messages are audited and copied at each stage

• High availability global solution backed up by a dedicated ITIL trained support team. Available 24/7

• Local resources through regional teams in EMEA, AP, SP and Americas combined with an off shore development model. (>9,000 man-days development in 2014)

Connecting the customer to DHL Supply Chain

DHL LINK is a leading edge, strategic integration solution which offers DHL Supply Chain customers a resilient, scalable, technically capable and highly available solution delivered through a utility based charging model.

Offering proven , reliable and cost effective options. Reducing risk through standardisation and experience of supply chain within many industry sectors

• Extensive experience with many message types (>1,200 customers / 12,000 Integrations)

• Consistent & guaranteed delivery of customer transactions. Messages always reach their destination

• Reduced supply chain risk through availability of integration service and support

• Capacity to support varied customer needs, responding to changes in demand

Challenges Value DeliveredDHL LINK

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Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda


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Major Trends That Impact Supply Chains

Four major driving trends shape commerce globally and threaten to disrupt

supply chains

What happens in one sector

shows up in an entirely

different sector

Continually escalating

expectations for service,

price and performance

Competition can come from

anywhere at anytime

Consumerism and

boundary bleed

Engines of demand with

growing middle class and

urbanization

Rising consumer

expectations

Lack of transportation

infrastructure, adequate

warehousing space and

even supply chain

expertise in some

markets

Emerging

markets

Increased speed of

business

Increased

interconnectedness

Highly complex,

intertwined and fast

market place which

creates enormous risks

and volatility

Fast, lean

and risky

Trade flows are shifting

away from long-distance

and east-west orientation

Regionalized supply chains

in which goods are

produced and sold/

consumed in the same

geographic region

The rise of

regionalism


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Current Monitoring Landscape


HP Open View

WMB

Hardware, Operating Systems &

Database

Communication Server & MQ

Application Interfaces (A2A)

Customer Flows /

Interfaces (B2B)

DHL LINK Software Application

Internal Maps & Listeners

Synchrony™

Gateway

Message Queue

Component / ServiceSoftware

IBM Tivoli Composite App

HP Open View

Monitoring Tools Alert Recipients

Service Desk

(DHL ITS)

Application Support

Site ‘Super Users’

DHL LINK Support

DHL LINK Support

HP SiteScope

LINK Control

Center

pkg_dbfeed.sp_process_set(500);

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Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda


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23Boosting Quality of Enterprise Services| CA World| 18 November 2015

Our Goals – What We Were Looking to Achieve

1. Visibility

• To enable DHL LINK to grow customer confidence by providing dashboard views of service and incident status

• To reduce the volume of incidents logged with DHL LINK by providing a self help view of the service and customer

connectivity status

2. Improved incident detection and fix

• To enable easy, automated proactive detection and resolution of issues and events before they become incidents

3. Innovation

• New APM tools provide the ability to investigate new monitoring methodologies and new automation

opportunities

4. Standardisation

• Currently there are many monitoring tools in place across the DHL LINK infrastructure, and many more tools

across DHL Supply Chain as a whole. This initiative gives DHL the opportunity to standardise on a single tool, in

line with the Strategy 2020 goals.

• A standard APM tool would enable a complete end-to-end view of customer interaction within DHL from a single

point, enabling better incident handling and therefore increased customer satisfaction

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24Boosting Quality of Enterprise Services| CA World| 18 November 2015

Selection Process• Development of Functional and Non-Functional Requirements around Stated Goals and across IT Products (3 Stakeholder Groups Involved)

• Selection of List of Potential Vendors and Products

– CA APM

– Dynatrace

– HP Sitescope

– AppDynamics

• Hold POCs with each Vendor and Product

• Review Results and Eliminate 2

• Hold 2nd Round of Further POC and provide detailed follow-up questions

• Review Commercial Propositions

• Implement APM in DHL LINK Environments

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Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda


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Siloes in the DevOps Cycle

GSN-RFC

Office /

SVN

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Progressing to the Vision of a "Tightly Integrated Toolset"

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New Monitoring Landscape


HP Open View

WMB


Database



Customer Flows /

Interfaces (B2B)



Synchrony™

Gateway

Message Queue


HP Open View


Service Desk

(DHL ITS)

Application Support


DHL LINK Support

DHL LINK Support

LINK

Control

Center

HP Open View

WMB


Database



Customer Flows /

Interfaces (B2B)



Synchrony™

Gateway

Message Queue


HP Open View


Service Desk

(DHL ITS)

Application Support


DHL LINK Support

DHL LINK Support

LINK Control

Center



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Monitoring + Automation – Setting the Foundation of "Shift Left"


HP Open View

WMB


Database



Customer Flows /

Interfaces (B2B)



Synchrony™

Gateway

Message Queue


HP Open View


Service Desk

(DHL ITS)

Application Support


DHL LINK Support

DHL LINK Support

LINK

Control

Center

HP Open View

WMB


Database



Customer Flows /

Interfaces (B2B)



Synchrony™

Gateway

Message Queue

Component / ServiceSoftware Monitoring Tools Alert Recipients

Service Desk

(DHL ITS Help Desk)

Application Support

(WMS, TMS, FIN)


DHL LINK Support

(2nd Level Support)

DHL LINK Support

(2nd Level)

LINK

Control

Center



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Our Current Support Paradigm

• Tacit Knowledge Managed in

Silo’s – Resolution of Repetitive,

Simple Incidents not managed

down closer to caller

• Lack of E2E visibility of

“Customer Solution” drives a

Siloed approach to Incident

Management - SD has no

Visibility to where problem

actually resides

• LINK CC provides some visibility,

but Customer Solution still is a

“Black Box” to some

Cyclone DHL LINK WMS(JDA, MAN)

Customer Solution E2E (DSC) Context

Customer

ITS B2B Cyclone Support

DHL LINK CSC Support(29% of Total Site Calls –

½ are DHL LINK Incident calls, ½ are RFI calls)

WMS Support(MAN-IBM, JDA-HCL)

Site User - Support Call

2~100% of

Calls

71% Re-Assigned

ITS SDLevel 1 Support

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The New Paradigm

• Common APM tool to provide

E2E visibility of “Customer

Solution”

• Reduce or Eliminate “re-

assigned” calls through accurate

and detailed visibility to a

Customer Solution

• Provide SD and End Users with

diagnostic tools through CA-

LISA Processes Automation

• Increase “self-healing” processes

via APM + Automation for

common incidents

Cyclone DHL LINK WMS(JDA, MAN)

Customer Solution E2E (DSC) Context

Customer

ITS SDLevel 1 Support – 35%

DHL LINK CSC Support(Complex Incident calls only

-not resolved by self-help or SD)

WMS Support(MAN-IBM, JDA-HCL)

Site User - Support Call – Level ‘0’ - Self Help – 25%

2 (10% of calls)

0% Re-Assigned

0% Re-Assigned

ITS B2B Cyclone Support

Make Tacit Knowledge Explicit Through Automated Trouble Shooting and Knowledge Management

Decrease number of Hand-offs, Implement more “Self-Help” tools via Automation and APM

Decrease frustration of End User through higher “self-help” rates, and greater First Call Resolution rates

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Company Background

2 DSC IT Functions


3 Challenges






Technologies

Agenda



Recommended Sessions

SESSION # TITLE DATE/TIME

DO5X189SHow to Achieve a Customer-Centric View in an

Omni-Channel World11/18/2015 at 1:00 pm

DO5X194SMonitor Microservices, Containers, Cloud Foundry and

Node with CA Application Performance Management11/18/2015 at 4:30 pm

DO5X193S

Customize CA Application Performance Management

with Tips for Using the CA Application Performance

Management Open APIs

11/19/2015 at 4:30 pm


Must See Demos

Application Performance Management and DevOps, featuring APM use in preproduction scenarios

Application Performance Management

Theater 5

Application Performance Management, Modern Monitoring, featuring the new APM Team Center


Theater 5

Ensuring a “5 star” mobile app experience with CA Mobile App Analytics

Mobile App Analytics

Theater 5

Unified Monitoring: APM Integrations including UIM


Theater 5


Follow On Conversations At…

Smart Bar


Theater 5

Tech Talks


Theater 5


For More Information

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CA World ’15

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