23 october 2008
GMCS will build a budgeting system at Freight One
GMCS has announced the start of a project whereby it will create a budgeting system for Freight One, Russia’s largest operator of railway rolling stock. 

GMCS experts will develop and implement an integrated budgeting system that will cover 16 offices and subsidiaries and 18 responsibility centers of the client. Since it was established in 2007, PGK has been progressively developing while expanding its organizational and financial structure. The previous budgeting system was unable to handle ever-growing volumes of data and could no more satisfy the company's needs. In order to ensure efficient financial planning and budgeting, the company leadership decided to automate the budgeting process with the IBM Cognos Planning. The new system is supposed to be implemented as soon as possible. When it came to the selection of a partner, the company preferred the expertise and experience of GMSC in introducing BPM solutions in complex multidivisional organizations.

In implementing the project now underway, GMCS will build a budgeting system that will allow Freight One to create multiple budget models and forecast profit & loss and cash flow both in the entire company and in individual offices.

Given the scale of the project objectives, the automated system will have to be implemented in a step-wise manner. Step 1 will be to develop a short-term financial planning model in order to be able to consolidate data from master budgets broken down by Freight One offices, subsidiaries, and responsibility centers. Step 2 will be for the GMCS team to integrate the client's management information system with the IBM Cognos Planning. The integration will ensure that actual data are promptly transferred from the accounting system to the preliminary budget. The final step will be to develop a strategic financial planning model for the company.

"When the budget planning system is introduced into operation, which is scheduled for early 2009, all the subdivisions of PGK will be involved in the budgeting process, finding themselves in a common information environment," said Konstantin Voevodin, the Deputy Head of Economics at Freight One.

"With the company's geography and pace of development, we have to build a budgeting system that will allow both existing subdivisions and each new business unit of PGK to quickly and smoothly connect to and work in the integrated budgeting system," noted Yevgeny Yerofeyev, the Director of BPM Systems, GMCS.

About Freight One

Freight One is the major railway operator in Russia. It was established in July 2007 with Russian Railways (RZD) as a major founding member and ordinary shareholder. PGK’s share in the Russian rolling stock is 21%. PGK offers a full spectrum of freight services including: 24-hour dispatcher’s supervision, freight forwarding and tracking in railway and multimodal communications, tariff setting, marketing and legal advice in the course of projects. Freight One's key short-term objectives are to renew its rolling stock, reinforce market positions, and increase capitalization.
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