Freight One summed up the results of transition to SAP S/4HANA

2019

Results of SAP implementation of S/4HANA and SAP Transportation Management

Freight One (FO) announced on October 7, 2019 that implementation of the software solution SAP S/4HANA and the module SAP Transportation Management allowed to automate key business processes of the company and to increase quality of customer service.

During large-scale digital transformation end-to-end logistic process, fully automatic system of calculation of tariff conditions for the client and their approval was built. Partner interaction was smoothly running from the moment of a request before payment of the rendered services. Integration with the client systems was made for operational providing information on transportations.

More than 500 business experts, key users and IT specialists were involved in the project. The program of transformation affected over 200 processes of the company.

Start of operation of SAP S/4HANA and SAP Transportation Management

On June 11, 2019 the SAP CIS company announced start of operation of the software solution SAP S/4HANA and the module SAP Transportation Management adapted for specifics of activity of the operator in Freight One (FO). The implemented IT platform will allow to automate key business processes of the company, to increase effective management of the park and quality of customer service. The project is implemented by the SAP Digital Business Services command – service division of SAP.

Fall forward and qualities of acceptance of management decisions, reduction of idle times and empty run of cars, creation of reliable IT infrastructure of functioning of information systems and data processing centers became key project tasks.

Activity of PGK moved to qualitatively other level of automation and management that will allow to react quickly and flexibly to market changes, will increase the level of service and speed of reaction to requests of consignors. Besides, together with SAP we created not just a system, and "a digital core" of the operator based on which it will be in the future possible to implement advanced analytics and machine learning in management of the park and carrying out repairs, online-informing clients and improvement of quality of interaction with them, commented Sergey Karatayev, the CEO of PGK

For SAP implementation in PGK – the sign project. It is the first similar localization and setup of the solution according to specifics of activity of the logistic company. In general, the large-scale project of transformation is very serious step of PGK towards the modern company with digital business processes,

2018

Development of a process maturity of PGK

Process model

• Maintaining uniform general repository
• Focus on "end-to-end processes"
• Internal training of BPM
• Appointment of the owner, curator, architect of process
• The development environment is ARIS
• Tracking of a change history of processes in ADVANTA

Internal training of BPM

120 employees were trained

• general management theory processes
• the methodology admitted to the companies
• practical tasks on creation of the EPC models

Training is required for development of regulations, participation in projects

Listeners broadcast the culture of process management in divisions

AS is model, system of development of NMD

• The new management system of NMD is implemented
• The regulations are unloaded from ARIS.
• Control procedures, kpi are manually entered
• In a new paradigm about 100 NMD, including 23 regulations of interaction are released
• The average time of development and approval of regulations was reduced from 6 to 1 month

Program management of the PGK projects

Project management. AS SHOULD be models

• Project management through processes
• The target process architecture is implemented (6 hierarchy levels, 320 EPC), 16 working groups, 700 employees are involved in project activity
• Organizational changes
• Integration seminars
• Implementation of culture of changes

Plans for the future

• End of the cycle continuous improvement
• Integration of ARIS & SAP Solution Manager
• Input of SAP in commercial operation
• Transition from AS IS to TO BE
• Collecting of actual data of processes
• Process mining
• Development the client - service culture

From the presentation Andreyev Ilya Aleksandrovich Protsessny is an architect "BPM as the platform of transformation" for a conference of CNEWS 2/15/18

2017: SAP and PGK signed the agreement

On June 1, 2017 SAP and PGK signed the agreement under which the operator automates all main business processes using SAP solutions.

"The main steps of our program of innovations implemented within the development strategy PGK till 2021 are reflected in the agreement. The command of the SAP project works on a responsible task — to gradually increase percent of useful use in a production cycle of the car. So far on average in the industry it does not exceed 30%. In the long term based on processing of large volumes of data we will be able to define additional sources of increase in profitability" — Oleg Bukin, the CEO of PGK noted, during signing.

According to the memorandum, based on SAP the centralized control system of primary activity of PGK will be created. S/4HANA, SAP Transportation Management and SAP CRM will become the platform of the project. On their basis in the company will analyze data on transportations — trajectories of movement and key parameters of the PGK carriage park. Information will be updated in a system in real time.

Thus the staff of PGK will receive operational analytics about a delivery status of each load in each unit of the rolling stock, cost value and terms of transportations. In the long term it will help the company to master new sales channels, for example, Internet services for medium and small business, and perspective business models, such as outsourcing.

In 2017 Freight One (FO) is going to begin the large-scale project on transition to the SAP platform for control automation with internal processes. The company reported about it in February.

The modern platform will replace the operating PGK ACS enterprise management system created on the basis of the ETRAN system especially for the company. It automates the primary productive activity of PGK – traffic control of cars. PGK note that the existing system has many restrictions and calculate that the new platform will allow it to conduct primary activity at qualitatively new level of automation and management.

Due to transition to the PGK new platform calculates the level of service and speed of reaction to requests of consignors

Implementing solutions of SAP will allow to increase the level of service and speed of reaction to requests of consignors due to data integration of different divisions of PGK in a common information space. We will increase information processing rate, we will exclude duplication and untimely emergence of data in a system and also we will have an opportunity to make decisions on the basis of deeper analysis of operational data, – the Deputy CEO of PGK for information technologies Vadim Uryas noted.

The company is going to use the SAP product S/4HANA for automation of conventional processes using SAP HANA instead of Oracle DBMS. Specialized processes of operator activity will be implemented based on the module SAP Transportation Management which should be adapted for specifics of activity of PGK.

According to TAdviser, is going to transfer to SAP PGK also accounting, having replaced with it the system inherited from the Russian Railway based on software Galaktika.

PGK have own DPC, but, according to TAdviser as one of options of placement of SAP applications the company considers model of the private cloud unrolled on the third-party platform.

Is going to complete transition to the PGK new platform to the middle of 2018. The SAP CIS company will act as the partner in project implementation.