Blueprint for setting up Retail Alliances

Key Observations & Learnings High Street Stores didnt work for DHL Research suggests that since a courier is not an impulse purchase, the position of a store in a mall/high street doesnt make financial sense & barely ever contributes to revenue e.g. Staples & P3 failed & most of their stores were in High Street Retail Space The commission structure should always be on total revenue net of service tax. Segregation in terms of core/non-core, domestic/international is tedious and inaccurate and commercials shouldnt be developed as per the same e.g. We faced issues with all alliance partners to segregate this. Even billing files do not reflect correct data. Since we use 53 accounts for this, errors in data entry from different stores can be hard to make out. The commissions should be proposed between a percentage of 8-15% NOST, depending on how well we can negotiate with alliance partner. E.g. Before the news of RW came in; we had agreed to give them commissions at 12.5% NOST which made good sense for both parties in medium to long run provided business grew normally. Ideally CMF mapping should be done to store managers and physical billing (as they are 53 accounts) should be stopped altogether. A single manual invoice can be made every 30 months to provide total details to the alliance partner. 3 Parent accounts need to be opened for each region and mapped to the Zonal Managers in CMF. CNs for commissions should be deducted proportionately from each account of ZRM. 3 codes should be set up for any site UE, International & Domestic. The IBS entry for domestic shipments needs to be done carefully by putting S in the Billing Type field. Unless this field is changed manually, the IBS entry will not happen as system will not allow rate to be entered on 53 accounts. E.g. Reliance World shipments wouldnt accept the O field and not let apply rate in IBS on a 53 account. Domestic Rates of Bluedart cannot be configured in DHL CMF. Whenever possible, cash codes should be used for booking domestic shipments. This is so because if an executive delays making an IBS entry, the next

billing cycle will automatically refer to CMF rates. 53 codes may be used for booking international or UE shipments. Collection of money from alliance partner for Cash Code needs to be responsibility of DHL nearest store manager IBS entry of the domestic shipments to be done at the nearest store. Responsibility of store manager. Parent/Child needs to be set up in CMF for alliance partner for convenience in billing & Mapping

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