More transparency and efficiency in tender management at DB Cargo

Background

 DB Cargo AG is one of the leading providers of rail freight transport in Europe with 4,520 trains per day. Strategically located at the heart of the central European rail network in Mainz, DB Cargo AG offers Europe-wide rail transportation for business customers across various industries. In order to coordinate cross-border freight transport via neighboring railroads, the tender management department has been using the HiPPS software, a database and design tool for contracts in the procurement of rail freight services, since 2018.

The department has already made progress in contract management with HiPPS. However, there was still potential to optimize the efficiency and transparency of work processes in some areas. To realize this full potential, the Camunda process orchestration platform was integrated into HiPPS in 2021. 

Through the use of  BPMN to map the entire process—from the initial inquiry to the finished purchasing contract—DB Cargo employees are able to gain insight into the process at all times and quickly identify bottlenecks. The automation of purchasing processes has also helped to make pricing more transparent and therefore more comparable. As a result, DB Cargo is not only even better positioned in terms of operational efficiency, but the contractual partners’ customer experience has also improved thanks to the faster and more transparent process. 

Key issue

The change in antitrust law around 10 years ago made freight allocation between international rail companies illegal, which had been common up until then. The new standards now required a change in the way tenders and contracts were drawn up between these rail companies.

In the original workflow, prices were determined decentrally and outside the platform, which limited transparency. With the introduction of HiPPS as a central database for the management of international purchasing contracts, significant improvements have already been achieved. A central workflow was created to further optimize the process and make it even more transparent and uniform. 

Why Camunda?

Camunda was chosen partly because other departments at DB Cargo were already working with the platform. This meant that important know-how was already available in the IT department. Although an internal solution was initially considered, Camunda prevailed following intensive examination of the options. Thanks to its open standards, Camunda has proven to be a very flexible platform that enables the integration of different management technology. Another key benefit was that manual workflows can also be orchestrated within the processes, ensuring seamless collaboration.

Challenges

Mapping the workflow alone was initially not enough to ensure constant synchronization. Initially, different irregularities occurred depending on whether the workflow was started manually or from a legacy system. Camunda provided advice on how to solve this problem so that a standardized process flow could be guaranteed regardless of the start point.

The result

With the integration of Camunda in HiPPS, lack of transparency and long waiting times are a thing of the past. Where once knowledge was stored in a decentralized system, all work steps are now structured and embedded in the contract management solution. In addition, the length of time needed for some processes was reduced to a few hours.

A process for purchasing rail transportation services usually comprises just under ten endpoints, with clear illustrations of their implementation in a BPMN process diagram. Human workflows, such as the selection of a foreign railroad company for a price inquiry, are automatically queried and forwarded at the right point in the process. This eliminates the need to send emails manually, and all employees involved can track the process and decisions.

“We are now always able to provide information when we receive purchasing inquiries,” says Michael Eckert, HiPPS application manager, highlighting one of the biggest advantages. “Whether it’s the price structure, the batch situation, the transport systems or the times—Camunda is particularly helpful, for example, when carrying out an analysis at the touch of a button.”

The use of BPMN and the associated process visualization also helped to make the endpoints apparent. Previously, it was often unclear how extensive a process actually was and how it had branched off. The visualization made it possible to remove excess endpoints, which also led to an increase in efficiency. With even easier implementation of changes and restructuring of business processes, DB Cargo is even more agile for the future than before.

What’s next?

The digital transformation at DB Cargo is still underway, and the workflows that are integrated into HiPPS with Camunda are also constantly evolving.