Banverket Industrial Division

The railway market in Sweden was deregulated in 1998. A few years later, in 2001, the effects of this change began to have a clear impact on Banverket Industrial Division. The main effect was the increase in competition from major players from countries such as the Netherlands, Germany, and England, a situation that resulted in a rapid decrease in market share. Now, with the help of IFS Applications, the Industrial Division is streamlining its business processes comprehensively and, as a result, has begun to improve its business situation. A clear focus on goals has begun to permeate the entire operation, and the Industrial Division is approaching the future with renewed confidence.

Need for Complex Solutions

“We manage extremely complex projects in which costs related to material and suppliers often account for 70% of the total sum,” explains Ingemar Freidlitz, project manager at Banverket Industrial Division. “This means that we have to excel at handling all our processes, from purchasing to personnel management, financials, and production, if we are to be truly competitive. Unfortunately, we lacked clearly defined processes and efficient IT support.”

New Work Processes

For this reason, the Industrial Division wanted to implement new, more business-focused processes from tender to project completion. Moreover, the company began to look for IT support that would help it in its new situation. An extensive evaluation of several ERP vendors was initiated.

IFS Applications Was Selected

The result of the evaluation was that the Industrial Division opted for IFS Applications. 

“Above all it was the standard functionality in the solution and the good references that were decisive,” recalls Freidlitz, who also mentions IFS’ implementation methodology as an important factor in reaching the decision.

Customers Demand High Service Levels

The solution was implemented throughout the organization to support functions such as purchasing, project management, financials, personnel management, and production. An added plus is the fact that the Industrial Division operates in one of IFS’ targeted industries, in which IFS wants to be best, and not just from an IT perspective. 

“Service-intensive industries are among our most important markets”, says Glenn Arnesen, managing director of IFS Scandinavia. “The business applications, combined with advanced consulting services based on intimate knowledge of the customer’s industry, enable us to help enterprises such as Banverket Industrial Division improve business processes and collaborate more efficiently with suppliers, contractors, and customers.”

IFS Applications Provides a Clear Competitive Edge

Banverket Industridivisionen sees its investment in IFS Applications as making a significant contribution to trimming its processes. It is part of a major change program in which better, more detailed long-term planning is an important benefit. The importance of long-term planning is obvious given the fact that the industry is characterized by tough price pressure that makes it crucial to be able to complete a contracted assignment at the lowest possible cost.

A Team Organization

“Managers have access to business critical information throughout the project, regardless of whether it’s a question of selecting the contracting services that offer the best value or ensuring we use existing agreements as advantageously as possible. IFS’ contract management component has also made it easier to focus on goals, which spurs employees and provides management with a clear picture of how the project is running in relation to established productivity goals,” says Ingemar Freidlitz. 

Banverket Industrial Division also manages administrative tasks, such as time reporting, with the system. This means that all employees regularly use the applications.

Well Worth the Effort

In concluding, Freidlitz points out that the change process has been tough but worthwhile. 

“Our situation was such that we had neither structured processes nor efficient IT support. Therefore the task we shared with IFS became a tough challenge because we had also set a tight schedule for implementation. We wanted the applications in place before the 2006 season—and we succeeded. This has helped break the downward trend. In the near future, we will continue to train our employees in the use of the applications to maximize our return on investment. With IFS Applications connecting all our operations, we are in a much better position than before.”

About Banverket Industrial Division

Banverket Industrial Division, headquartered in Nässjö, Sweden, is a profit center within Banverket, the Swedish railroad authority. The division builds and upgrades tracks, and electricity and signal stations, accepting contracts throughout Sweden and in other parts of Europe. It has 370 employees plus 60 seasonal workers. The parent company, Banverket, has approximately 6,000 employees.