Australian rail firm in SAP first

Australian company Aurizon will be the first rail transport company globally to deploy a freight management solution based on SAP’s Supply Chain Execution 9.1 software and HANA in-memory computing platform.

ASX-listed Aurizon, which changed its name from QR National Limited in late 2012, will use the new system for freight planning, scheduling and product tracking, and near-real time reporting.

The system will replace a collection of legacy and customised applications, and offer a portal for customers to view and track the status of their consignments, and manage orders and invoices. Track and trace capabilities will also be offered on mobile devices.

Aurizon is deploying the SAP Transportation Management, SAP Event Management, and SAP Extended Warehouse Management modules under the SAP Supply Chain Execution Platform. The firm has already deployed SAP ERP and Asset Maintenance software.

Greg Pringle, Aurizon executive vice-president, enterprise services, said in a statement: “SAP came to the table with a global team of rail experts and worked closely with us throughout the process to understand our perspective and business requirements, which ultimately allowed them to conceptualise and scope the solution we have now begun to implement.”

The implementation supports the company’s transformation program. In December, Aurizon outlined an integrated operating plan to improve efficiency and productivity, and reduce costs across the business.

By FY2018, the company expects to reduce its locomotive fleet by 28 per cent and wagon fleet by 12 per cent. The company has also made 248 staff redundant since July 2013. Around 2000 staff, or 20 per cent of the company’s workforce, have left since its IPO in November 2010.

Aurizon shares were trading at $4.86 per share on Monday afternoon.