#CUSTOMER SUCCESS STORY
VTG accelerates with implementation of harmonized rail processes
VTG GmbH is one of the leading players in the European rail freight space. The company operates the largest privately-owned fleet of freight wagons in Europe. It comprises around 84,000 rail freight wagons plus about 5,000 tank containers. Besides leasing out rail freight wagons and tank containers, VTG also provides multimodal logistical services.
Summary of the VTG Customer Success Story
- VTG Rail Logistics faced transparency issues, causing frustration and inefficiencies in daily operations. Their aim is to become a digital market leader, and launched RailFIT to standardize processes and enhance efficiency.
- AcceleRail supported VTG by defining RailFIT’s scope and structure during tendering. They supported developing an end-to-end solution and ensured the translation of business requirements to IT requirements.
- After harmonizing the processes and successfully rolling out RailFIT, VTG plans to continue its digital transformation by integrating clients, partners, and platforms for further advancements.
“With all the experience AcceleRail has working on other solutions and digital transformations for rail companies, they made it easy for us to coordinate across all modules that are needed for our project.”
Thorsten Reichel
Head of Operations Germany
VTG Rail Logistics Deutschland GmbH
Beyond the black box
Thorsten Reichel, Head of Operations Germany at VTG Rail Logistics Deutschland GmbH, tells about the lack of transparency: “Being active in 10+ European countries asks for standardized and digital processes. We didn’t have a 360-degree view on our business. It was very time consuming to close the month and to get the costs and results on a national and overall level. Too many e-mails and spreadsheets led to a lot of frustration. It was time to bring the company into the new century and work towards a companywide integrated approach.”
Future-proof systems
Being active in logistics means communicating with a growing number of supply chain partners. The emergence of digital platforms calls for more data-driven business models. “VTG wants to become the digital market leader for international transport solutions with a focus on rail. Therefore, we need harmonized and transparent processes covering all operations in the European business units. A pan-European modular, workflow-based IT system needs to be in place allowing electronic data exchange with suppliers, customers and internal systems”, stresses Thorsten.
RailFIT
Currently, the management of daily freight forwarding operations in Western Europe is done through two separate systems. Both systems are not uniformly and comprehensively implemented in the countries. Also, the individual systems are not interconnected, do not fully meet the business requirements and require modernization. As a result, there is a fragmented view of the business.
For this, the company initiated the implementation of RailFIT, which seamlessly connects modules & processes throughout the supply chain, from sales to invoicing. By enabling single data entry, guided workflows, and automated intercompany and booking processes, RailFIT significantly reduces manual work and enhances overall efficiency.
“The project RailFIT aims to standardize all processes and enables us to become more efficient and competitive on a European scale. The project encompasses Procurement & Tender Management, Offer Management, Rail Transport Management, Fleet Management and Closing. Managing such a large and complex project requires expertise in IT, change management and project management. Since we want to focus on our core business, we sought full-time support.”
Head of Operations Germany
VTG Rail Logistics Deutschland GmbH
Setting up the tender
AcceleRail has a solid track record in rail expertise. They came with several years of rail and digitalization experience, having worked on various digital transformation projects in the past. That was one of the reasons for contracting them says Thorsten: “Complex tenders require industry knowledge and change management skills. The AcceleRail team supported us during the tender phase, leveraging their incredible network within the rail industry. We were not aware of the scope of such a large European project and lacked the necessary experience. AcceleRail worked with great enthusiasm and professionalism to define the scoping and structure of our RailFIT program, with all related to-be processes and business requirements.”
IT change management
The cooperation between AcceleRail and VTG went smoothly during the tendering process. Therefore, VTG decided to also hire AcceleRail during the implementation phase. The project was kicked-off in the autumn of 2021. “AcceleRail understands our business and our strategy and has the technical understanding how to develop an intermodal transport management IT system. You can imagine that such an important project needs to be delivered in time and on budget. Project and change management is a discipline in itself. AcceleRail sets up the IT structure, works on Minimum Viable Products that we can test and brings agility to the table. We are working towards the end of 2023 or beginning of 2024 to launch the platform across Europe. It really feels that the AcceleRail colleagues are part of our team”, underlines Thorsten.
Digital connections
The ambition of VTG does not stop here. Once the harmonized rail processes are in place all across Europe, the rail company wants to move forward to the digital part of the project. “First, we have to see the operational benefits, so that customers can buy in. RailFIT 2.0 is all about connecting to other parties. We want integrations with clients and supply chain partners. Also, we aim to be ready to connect to other platforms. The momentum is here. We want to do business smarter and recap the benefits of digitalization. We are glad AcceleRail is helping us to navigate the digital seas. I am confident that we can accelerate our business with this unified system”, says Thorsten.
About AcceleRail
AcceleRail plays an important role in the progress of the project. They know how to convert our business requirements into IT requirements, which makes communication between the teams and with the IT supplier easier and smoother. They also help us streamline the internal processes and facilitate our decision-making processes especially while prioritizing requirements and finalizing the scope.
AcceleRail supports on all the project management tasks, thereby reducing unnecessary risks and delays, and the stress on the internal project managers. When it comes to rollout in multiple steps of all modules across all countries, AcceleRail supports driving the change with the orchestration of all the preparatory tasks. The rollout process is very complex and needs skillful support, which is where AcceleRail came in and provided their expertise.
