Case Study: Deutsche Post DHL achieves 31% reduction in cost per PO line with Tradeshift

Transforming Operational Procurement With Deutsche Post DHL

Deutsche Post DHL set out to reduce its cost per purchasing transaction by 20% within three years but faced a fragmented procurement landscape: purchasing teams spread across 35 locations, multiple systems, and no clear separation between sourcing and operational procurement. This lack of standardization hindered performance, so DP DHL planned to centralize service centers and standardize the requisition-to‑PO process across its operations in more than 220 countries.

DP DHL implemented Tradeshift (formerly IBX) as a single global procurement channel integrated with SAP SRM and Oracle iProcurement, introduced a consumer-style catalog UI, standardized SOPs and KPIs, separated sourcing from operational procurement, and outsourced APAC operational procurement to Capgemini. The changes delivered substantial gains: average cost per PO line fell 31% (2011–2014), total purchasing cost dropped 14%, productivity rose 57% (from ~12,000 to ~20,000 PO lines per FTE), headcount declined 19% while volumes increased, purchasing compliance reached ~88–90%, and automation rates climbed to as high as 87% (Germany >98% no-touch).

DHL