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Customer Snapshot

All Aboard – Express
Ride to Success

Running on

85,500  km

of track

From Beijing to Berlin, Russian Railways (RZD) moves people and goods across two continents and 85,500 kilometers of track. But processes were unable to keep up with complex operational demands. After choosing the SAP Business Planning and Consolidation application, RZD joined the SAP Ramp-Up program for an express ticket to better business.

 

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"One factor in raising our efficiency was in selecting SAP HANA to speed up report generation and information analysis."

Company

RZD Russian Railways

Headquarters

Moscow, Russia

Customer Website

eng.rzd.ru

 

Revenue

RUB1195.1 billion (2010)

Number of Employees

970,000

Implementation Partners

---

Line of Business

Finance

Industry

Travel & Transportation

Featured Products

SAP Business Planning and Consolidation, SAP HANA

History

Making tracks across history

     

  • 1842The Department of Railways supervised the construction of Russia’s first railway line, linking the imperial capital St. Petersburg with Moscow (1842-1851).
  • 1862Railway lines were completed between St. Petersburg-Warsaw and Nizhny Novgorod.
  • 1891The Trans-Siberian Railway was begun (completed in 1905).
  • 1900The Russian railway network boasted a route length of 44,900 kilometers.
  • 1913The system comprised 58,500 km of track and transported some 132,000 tons of freight and 185,000 passengers every year.
  • 1914The First World War, and the subsequent Russian Civil War from 1917 to 1921, brought havoc on the Russian economy and railway system.
  • 1921More than 60% of the railway network, 90% of the locomotives, and 80% of the carriages were destroyed.
  • 1940 In the new Soviet Government, the railway network carried nearly 600 million tons of freight a year and had expanded to a total length of 106,100 kilometers.
  • 1948The railways played a vital role in the war effort, transporting soldiers, military equipment and freight to the front lines, and shipping dismantled factories and industrial equipment from European Russia to the Urals, far beyond the reach of the advancing German army.
  • 1950Soviet Union Railways, the world's largest unitary rail system during this time, increased route length from 115,000 km to more than 145,000 km.
  • 1975Freight volume on Soviet Union Railways had grown threefold to 3,621.1 million tons. 38,900 km of track were electrified and electric locomotives accounted for 51.7% of traffic, with diesel for 47.9%.
  • 1988Peak volume of traffic in the Soviet Union, with the railway system transporting 4,116 million tons of freight and 4,395.9 million passengers.
  • 1991The end of the Soviet Union saw Soviet Union Railways broken into individual national railway systems – who realized they would be viable only if they maintained the cohesion of the Soviet rail network. So they established coordinating bodies such as the Council for Rail Transport of CIS states.
  • 1995It became clear that to provide the quantity and quality of rail services now required by Russia’s economy, the railway sector needed to undergo thorough reform and modernization.
  • 1996“Major Guidelines for Railway Transport Development” policy was adopted by the All-Russia Congress of Railway Workers, laying the foundation for the sector’s reorganization.

The Challenge

All aboard the same train

The Russian Railways were looking to standardize their disparate budgeting and planning systems across their subsidiaries. They also needed to shorten planning-cycle times, and speed up the consolidation process. They needed everyone to get onboard with a new way of doing business.

Enter SAP

Getting on track

As the second largest rail network in the world, the company’s strategic objectives and mission called for SAP solutions. They needed to meet the market demand, increase the scale of the transport business, enhance overall competitiveness, achieve financial stability, and ensure the social responsibility of the business.

 

SAP could punch that ticket.

 

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"SAP Rapid Prototyping allowed us to execute the project using a test license, without buying the HANA license. Following the successful test project, Russian Railways decided to buy the HANA database."

Running Better

Easier. Faster. Better.

Russian Railways integrated all planning types and systems across the organization and settled on a single calculation methodology. They standardized and integrated disparate financial systems, and SAP Business Planning and Consolidation provided the end user with a simple, easy-to-use interface.

Benefits

 

“With the help of the SAP Ramp-Up program, the implementation of SAP Business Planning and Consolidation was a smooth ride. Thanks to the software, we run our once-slow processes faster, with greater ease and flexibility.”

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"Since we started using SAP HANA, cost allocation has become 40 times faster, and reporting is five times quicker."

Today

Ramping up

Today, the Russian Railways have implemented several systems. They’ve finalized operations budgeting and planning, and continue their data automation projects. With the support of the SAP Ramp-Up program they were able to start early, and through participation, they maintained project control.

 

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"The main advantage we see is having centralized information for the whole of Russian Railways, down to unit financial data in minute detail."

Journey Ahead

A platform for success

Implementing the railway development strategy will help meet Russia’s national transport objectives. The expanded infrastructural base ensures the country’s territorial integrity, reduces regional inequalities, and promotes the growth of the Russian economy. SAP hopes to continue supporting Russian Railways moving forward.

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