Fret SNCF was speeding toward an uncertain future. Challenged by an industry undergoing deep change, the freight subsidiary of France’s state-owned railway company was experiencing a 10-year record of declining revenues and rising debt. As 2017 neared its end, the company called on KPMG to develop an ambitious turnaround plan.
KPMG France immediately performed a competition analysis of the transportation and logistics sector in France. With powerful and relevant data insights, KPMG presented SNCF with the potential consequences of dismantling the company. Going further, the KPMG team comprised of 50 experts, developed a set of projections related to road congestion, accident rates, CO2 emissions and broader impacts.
The robust, data-driven approach was used to identify and implement 8 productivity levers. Within 2 years, SNCF reduced losses by about 40 percent. In parallel, KPMG helped the SNCF management team raise critical funding to invest in further innovations, build a treasury department and implement a cash culture that is spreading across the organization.
KPMG continues to work as a trusted advisor to SNCF, sitting on its executive committee and participating in various strategic decisions related to moving Fret SNCF forward.