Proving the Business Case for the Internet of Things

SAP says don’t blame us for DHL software problems

Steve Rogerson
December 3, 2015
 
German software supplier SAP has denied recent media reports that suggest there is a connection between SAP and problems with the implementation of a new logistics system at DHL.
 
“These statements regarding SAP are incorrect,” said a company statement. “SAP was not commissioned by DHL as general contractor and SAP software was not the root cause of the problems.”
 
Since 2011 DHL has revised its global logistics system to be rolled out in more than 120 countries.
 
“SAP was at no time responsible for the project management and software installation,” said the statement. “In fact, SAP has offered early support beyond the actual contractual status as a software supplier.”
 
The statement follows a report in German publication Manager Magazin that said DHL was considering seeking damages from SAP and IBM following DHL deciding to write off €345m following a failed software upgrade.
 
This led to DHL reporting “one-off effects” that impacted its earnings in the third quarter of this year.
 
“2015 is a transition year from our Strategy 2015 to Strategy 2020,” said Frank Appel, CEO of the Deutsche Post DHL Group. “We are working systematically to position each of our business divisions optimally and to achieve the long-term targets projected in Strategy 2020. We have recorded a number of one-off effects, which will de-risk and strengthen our ability to meet or exceed those targets. We expect that the benefits will begin to materialise already in 2016.”
 
The company announced in October that the group had recognised one-off effects of €345m in connection with the further course of the IT renewal roadmap at DHL Global Forwarding. DHL Group also recognised in its outlook for 2015 further one-off effects of around €200m. These exposures relate mainly to the updated assessment of primarily legal and regulatory exposures. Around €81m of this sum was booked in the third quarter.