Deutsche Bahn brochure 2017

DEUTSCHE BAHN and the journey to a digital future PROJECT SPONSOR

DEUTSCHE BAHN and the journey to a digital future Written by Catherine Sturman Produced by Richard Durrant

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DIRK KLEINOW, HEAD OF IT SYSTEMS IN DEUTSCHE BAHN’S PROCUREMENT DIVISION, DISCUSSES HOW THE COMPANY IS WORKING TOWARDS A DIGITAL FUTURE

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nvesting approximately €1bn in a number of digitisation projects, Deutsche Bahn has become heavily focused on transforming its service delivery over the last five years. With an additional venture capital totalling up to €100mn, its ambitions have seen its overall operations and transport infrastructure overhauled, as well as adopting an enhanced ‘customer-centric’ attitude along the way.

Obtaining positive financial results in 2016, Deutsche Bahn has continued on its digitisation journey and has placed significant emphasis on guaranteeing positive customer experiences.

“Since I started working at Deutsche Bahn, we have placed a greater focus on customer satisfaction. We see procurement as an integral part of the business, where collaboration between different departments has become vital,” explains Dirk Kleinow, Head of IT Systems.

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“We see procurement as an integral part of the business, where collaboration between different departments has become vital�

DIRK KLEINOW Head of IT Systems, Procurement

An example of Deutsche Bahn’s pilot programmes has seen the implementation of autonomous and semi-automatic vehicles in its logistics operations

Working within Deutsche Bahn’s procurement division for over 10 years, Kleinow has seen the company strenuously work to strengthen its partnerships with suppliers through the adoption of new, data-driven business models in order to become a leader within the transportation sector.

New technologies Utilising an ERP system to support its supply chain management operations, Deutsche Bahn has also begun to implement cloudbased services to not only simplify its procurement processes across

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its global base, but factors into its long-term ambitions to obtain industry-leading procurement.

“When we moved to the cloud, we had a depression in our pricing systems,” observes Kleinow.

“Nonetheless, we have become more flexible in deploying these systems, and not just in Germany. Since we are now on the cloud, we are more linear and are able to deploy our systems within different countries.

The time to invent and implement systems within different countries is getting shorter and shorter.

“We are continually trying to

Case study of DB Schenker’s CarryPick automated online order fulfillment and returns handling solution for Lekmer.com, Scandinavia’s largest online toy retailer.

renew the system and get more outside information into our supplier management systems, which will support the procurement team to find better sources of supply. We think it is a good place to look at for the future.” To this effect, the company is also undertaking a number of pilots surrounding robotic process automation to further support data sharing on different platforms.

Not content with solely digitising its supplier management procurement operations, Deutsche Bahn’s logistics operations have also been overhauled. The implementation of autonomous and semi-automatic vehicles is currently something which the business is working towards, which will ultimately drive long-term benefits. “At the end of the day we are a logistics support company and we try to look at what the trends are and how we can participate in these trends or even get a lead in these trends,” comments Kleinow.

“We are also looking at artificial intelligence, but at the moment the maturity grade of AI is not at the level that we can apply it to our systems.

I’m thinking three to five years and this will be a field where you will definitely see growth.”

Customer benefits So, how are customers benefiting? Throughout its digitisation, Deutsche Bahn has been committed

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to ensuring service quality remains concerns within its service delivery exceptional and consistent across its operations. “The two throughout. Since the start of 2017, words translate to ‘the future of rail’,” Wi-Fi, TV and films are all now freely says Kleinow. “We are looking at available on all of the company’s rail getting more information out of our services, highlighting the company’s systems, which we feed back to the commitment to listen to customer responsible divisions. It also covers demand. All rail customers are also the sourcing of materials so that all able to take advantage of Deutsche rolling stock is ready in time.

Bahn’s ICE portal, which “Sustainability is provides detailed travel also a big issue for Number of information and us,” continues employees at electronic newsletters Kleinow. “Our Deutsche Bahn to inform and entertain industry initiative, customers on their Railresponsible, journeys. Listening concerns the green to customers has delivery chain for become intrinsic to the our goods which we very fabric of Deutsche Bahn, are receiving into the where it understands that customer company.” Launched back satisfaction has become key to its in 2015, the initiative focuses on innovation and continual success. improving sustainable practices However, none of this would have and efficiencies across the been possible without Deutsche railway supply chain, promotes Bahn’s quality programme Zukunft transparency and enables capacity Bahn. Launched in 2016, Zukunft building with industry suppliers.

Bahn enables Deutsche Bahn to listen Its members include Deutsche better to customer requirements Bahn, Abellio, Alstom, Arriva, and eradicate any bottlenecks or Bombardier and many more.

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The future of rail Deutsche Bahn has been strengthening its rail infrastructure in Germany, with the long-term ambition to support the development of smart cities. Its new rail line running from Berlin to Munich opens in December, which will reach speeds of up to 300 km/h. “It will link the capital with Munich in less than four hours, which is quite quick for 600km, which is around 325 miles,” comments Kleinow.

“We are trying to get more people

“Innovation will change our way of working, but it will also change how we gather information and improve the speed of our services” DIRK KLEINOW Head of IT Systems, Procurement

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onto the rail, and attract customers with better prices and more availability within all of our trains. If we have more trains running more frequently, people will easily be able to change from using the car to utilising the rail.”

The company’s continued focus on delivering not only quality services, but also building strong partnerships with suppliers, will see it continue to go from strength to strength. Its long-term ambitions to remain a leading employer in

Customer service is a key focus area for Deutsche Bahn

Germany will also see it continue to innovate alongside the development of the market.

“Innovation will change our way of working, but it will also change how we gather information and improve the speed of our services,” Kleinow adds.

“I think that the procurement department will change its way of negotiating contracts; it will come to be the facilitator of ‘the sourcing event,’ put it that way,” concludes Kleinow.

“We’ll gather all the information, bring all the parties together, and create collaborative teams.

This, I feel, is the future of procurement.”

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DB Vertrieb GmbH StephensonstraĂ&#x;e 1, 60326 Frankfurt am Main, Germany T 0044 (0) 8718 80 80 66 www.bahn.com