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Significant breakthrough into Russian market

Major car importer and distributor Rolf Group will be the first company in Russia to implement Vehnet’s market leading finished vehicle logistics tecnology.

The move forms part of Rolf’s expansion and development strategy, which complements rapid market changes in Russia and substantial growth in the number of cars imported into the country, according to Stephen Fletcher, Head of Supply Chain Solutions – the logistics business of the Rolf Group of Companies.

“We recognise the need to invest in infrastructure and best-in-class IT support for our operations,” he said. “During 2008 we will be expanding our business. The Supply Chain Solutions division will be investing in St.Petersburg and Moscow, as well as elsewhere, in anticipation of importing 250,000 foreign vehicles into Russia and managing onward flows.”

Before selecting Vehnet’s software, Rolf looked at other providers across the market, but decided to opt for proven technology specific to the automotove sector.

“We have absolute confidence in Vehnet’s core competencies,” Stephen Fletcher confirmed. “Vehnet boasts an excellent track record in the finished vehicle logistics industry and they haveproven implementationsother marketplaces. The system is sufficiently flexible to adapt to the unique environment in Russia and has been designed to meet the specific requirements of compound management.”

The implementation of Vehnet’s software will be a three stage project, which is already underway. The first stage will be completed this summer.

  • Phase one will provide yard management operations at Rolf’s sites in St.Petersburg and Moscow.
  • Phase two will see the development of PDI (Pre Delivery Inspection), vehicle accessorisation and workshop functionality.
  • In phase three RFID tagging will be introduced. This will tag individual cars on arrival at storage yards; the tag will stay with the car until it is handed over to the customer, allowing for tracking and tracing of the vehicle in real time, thoughout its lifecycle with Rolf.

The system will be required to handle a forecasted 400,000 vehicles per year over the next two years, from receipt into the yards, damage inspections and storage, through PDI and accessorisation to loading and distribution to dealerships.

Group Managing Director of Vehnet, Steve Jones, said “We are delighted to have broken into the Russian marketplace with this significant new contract and with such a high quality partner as Rolf Group. Russia is an important emerging market, which offers excellent potential for Vehnet to further expand its global operations.”

Rolf Group is one of the leading automotive businesses and the largest importer of foreign cars in Russia. With 16 successful years in operations and expected 2007 revenues of over $4 billion, the Group is one of the most profitable in the automotive sector worldwide.