SAP: IT solution on management of railway cargo transportation

In July, 2013 the SAP company and Skolkovo Foundation announced signing of the memorandum of creation of industry IT solution on management of railway cargo transportation which will allow market participants to optimize this process and it is essential to reduce logistic costs.

According to analysts, today in Russia and the CIS logistic costs make, on average, 20% of GDP while they are in the USA and Europe at the level of 8.6% and 7.8% of GDP, respectively. At the same time the large Russian industrial enterprises which are the main consumers of transportation services of loads by rail come under escalating influence of crisis — in particular, one of the industries enduring now recession of the prices of the made products is the metallurgy.

According to Natalia Parmenova, the chief executive of SAP CIS: "Optimization of logistics will allow the Russian metallurgical companies to receive new reserves for improving competitiveness, without affecting the main production processes. Considering task scale, for it solutions should be used not only the best world practices and technologies which successfully proved in the different countries of the world but also the innovative solutions reflecting the Russian specifics". Natalia Parmenova also noted the social importance of the projects connected with optimization of logistics: "The railroad for our country – something bigger, than a part of transport business. The cost of the goods and services consumed by residents of our country directly and significantly depends on transportation costs. Therefore, reduction in cost and increase in efficiency of transportations is an important social task which solution will be reflected in life of each of us".

Bogachyov Igor, chief executive of an IT cluster of Skolkovo Foundation: "Today's action very visually captures the essence of what we try to create to Skolkovo – the innovation ecosystem which consists of several blocks. One of them are startups, the innovative young companies which bring the new ideas in business. By the way, 40 years ago SAP also began as a startup in which command there were only 5 people. Other part of an ecosystem are our key partners, the international corporations, such as SAP – one of the leading partners of Skolkovo Foundation in the field of information technologies. This company introduces in our ecosystem knowledge, examination and technologies. And one more important component of economy of innovations which representatives are also present today: these are customers of innovations which ripen to Skolkovo, - large producers and the trading companies. It is possible to give JSC KAMAZ which recently adopted the new multimedia project created by Intel in cooperation with small innovative companies Skolkovo as an example of such large companies".

Today the prices of a number of metals are at the level of 2009, the offer exceeds demand. This situation is characteristic both of Russian, and of foreign markets where many largest producers already announced intentions to reduce production volumes by 5-9% in connection with high electricity rates and the low prices of metal. Expediency of such approach on the Round table leading experts and participants of the market of transport logistics of rail transportation, heads of the companies project participants discussed Skolkovo.

Participants of a round table got acquainted with opportunities of the SAP solution Transportation Management (SAP TM) for control of transport and logistics in which development tens of millions of euros are already invested. SAP TM allows to manage different types of transportations – transportation of container, bulk and bulk cargoes and also avia - and shipping, to keep the complete cost accounting. In process of emergence of new versions of SAP TM, the functionality of technology extends. In the long term the system of such class can become a basis for the solution of transport and logistic problems of federal level.