JSC "Ukrainian Railways"

Fuel Procurement Transformation Through Category Management

JSC "Ukrainian Railways" (UZ) is the 13th largest in the world state-owned monopoly of rail transport in Ukraine.

Diesel fuel is the top spend category of UZ - over $300m per annum. Legacy procurement practices of UZ have been subjected to the transformation since August 2019, where CIPS Corporate Excellence best practices have been applied.

As a result, the competition increased from 3-4 to 8-12 bidders per tender, vendor margins consistently decreased; UZ already enjoyed 7 consecutive months of buying below the wholesaler market level. During this period, UZ recorded $7.9m worth of savings and aims to achieve $11m during 2020FY.