The SNCF (Société National des Chemins de Fer) is the national railway operator in France and manager of the railway infrastructure owned by the RFF (Réseau Ferré de France). The company is a French public entity with autonomous management established under the special status of an Establishment Public Industrial and Commercial (“EPIC”) and is fully owned by the French State. The rail road consists of 32, 000 km of route, of which 1,500km is high-speed and 14,000 is electrified. About 14,000 trains operate daily. The traffic in 2006 was 350 millions of travelers and 40 billion km² transported. The aim of this paper is first to have a short strategic overview of the SNCF and then to focus on Business Process Redesign with an example of the maintenance branch.First, the SNCF is a French government owned company offering railway services across Europe.
[...] Business Process Redesign: the example of the maintenance branch To reduce the costs and the delays, the SNCF has completely modified the organization of the material department, which is responsible for the maintenance of the rolling stock Context At the SNCF, the material division has an important role within the national company. It has to maintain the whole rolling stock. The rolling material field consists on people in 44 establishments and the activity reaches 2 billion dollars. Moreover, it works for private companies of the activity). [...]
[...] This system allows having parts layout without mistakes and in short delivery time, to react faster in case of problem, to optimize the stocks and to have a strong collaboration with the suppliers: batch size and delivery frequency. Finally, the SNCF decided to avoid its 17 regional stocks platform to open one national site managed by the service provider TNT. The warehouse has the totality of the stock except the parts which are bigger than two tonnes. The platform is in charge of the supplying the different sites and recover the parts. [...]
[...] Opportunities First, the SNCF can take advantage of the opportunities offered by the gradual liberalization of railways market through the build-out of its cross-border high speed trains as well as the pursuit of smaller local international passenger franchises through its Keolis joint-venture, where for example it has successfully competed for the tender of urban and regional bus operations in Sweden, Germany and UK. Then, the TGV EST EUROPEEN represents a great opportunity for the group. The high-Speed train will cover all the country. [...]
[...] Summary of the centralization benefits: Before After late Conclusion The environment is changing: Europe enlargement, competition of other transportation and of other railway companies, customers' expectations which are higher and more diversified and also environmental issue. Face to this environment and its ambivalent image of a public company, the SNCF has managed to show its potential. Since the past ten years, the company has been modernized. It has become customer-focus, has taken into consideration the sustainable development issues, has begun the renovation of its public mission and has modified its internal management. Moreover, the SNCF has always put innovation at the heart of the [...]
[...] Political instability in other oil producing such as Nigeria has also aggravated fears of short supply of oil. Then, the company had in the past the monopole of the railway transport. Since 2003, the SNCF is confronted to the intramodal competition concerning the international freight transport and since 2006 concerning the internal market. There are seven competitors. The main competitors are Veolia and EWS. Even if, they represented only 2 to of the freight market, they oblige the SNCF to decrease its prices to be competitive. [...]
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