UMG is a company that manages commodity assets and trading. It was founded in 2006 by the financial and industrial group System Capital Management.

The company operates in six main areas: clay mining, limestone and dolomite mining, processing and realization of thermal power plant by-products, rare and industrial gases, trading in mineral fertilizers and grains. The geography of product supplies covers 30 countries.

Mining enterprises are located in Donetsk and Lugansk regions of Ukraine; flux-dolomite — in the city of Dokuchaevsk and the village of Novotroitskoye, Donetsk region.

One of the key areas of UMG’s business is clay mining, represented by three enterprises:

  • PJSC «Vesko»;
  • PJSC «Druzhkovskoye Ore Mining»;
  • PJSC «Ogneupornerud».

UMG clay mining enterprises employ more than 1,500 people. With a product portfolio of more than 60 types of clay, UMG’s share in the global clay market is about 10%. At the same time, 90% of UMG sales are export deliveries covering 25 countries of the world. About 50% of exported products account for EU countries.

Flux-dolomite direction is represented by the two largest Ukrainian enterprises in this industry:

  • PJSC Dokuchaev Flux-Dolomite Plant;
  • PJSC Novotroitsk Ore Mining.

The main consumers of the products are Ukrainian enterprises in the metallurgical, glass, cement, sugar, construction, chemical, and other industries. Among the customers of UMG — MMK named after Ilyich, Azovstal, Zaporizhstal, Dnieper Metallurgical Plant, ArcelorMittal Kryvyi Rih, Zaporizhzhya Iron Ore Plant, HeidelbergCement Ukraine, and others.

Most of the transportation is carried out by rail and the company faced the question of a qualitative solution to the problems of transportation management, we need prompt and reliable information:

  • about wagons and cargoes;
  • Consignors and consignees;
  • Tariffs for transportation and additional services of Ukrainian Railways;
  • The wagons’ condition, their location, technical parameters, and much more.

The problem of solving automation of accounting for freight forwarding services was decided to be carried out on the basis of the Art:Railway Logistics software product developed by Art Port specialists, which allows integrating access to the data of Ukrainian Railways (through The server module matching developed by TM Software) and their transfer to the enterprise information system.

In addition, the developers were tasked with resolving issues:

  • Automated calculation of the delivery cost of flux limestone by rail to consumers using the services of carriers;
  • Automatic monitoring of dispatching and delivery using data from the SMS server of Ukrainian Railways.

Specialists of Art Port conducted a pre-project survey of the features of the activity, studied the needs and wishes for a new accounting system of freight forwarding services, installed the system on the server and workstations, made its configuration and necessary software improvements, and trained employees to work in the system.

As a result of the implementation, the company received a software product that allowed automating all the accounting functions of freight forwarding services, making the whole process simple and intuitive, reducing the processing time of information and documents, minimizing the human error factor, including:

Downloading of electronic documents with the possibility of viewing printed forms in PDF format:

    • Electronic railway consignment notes (ERC) — GU-27, SMGS, CIM;
    • Instruction GU-45 (spotting/picking);
    • Sheets GU-46, GU-46a, GU-46k;
    • Cards FDU-92.
  • Unloading of railway invoices (entering recipient data and electronic signature with sending to the UZ database)
  • The mechanism for viewing information on the wagon: documents by the wagon, history of conditions, location.
  • Advanced financial and analytical capabilities:
    • Automated search for wagons and invoices in the documents of expenses and distribution of expenses in proportion to the selected indicators (tonnage, number of wagons):
      • Railway tariff and transportation of empty wagons;
      • Use of wagons, spotting/picking, shunting at the station;
      • Other station costs (forwarding, storage, weighing, fines, clearance, etc.)
    • Generation of acts of the GU-23 form on the basis of notes from the statements on the use of GU-46 wagons;
    • Access from the wagon card to the cost of transportation with its participation;
    • The ability to register other costs not related to UZ (paperwork, work of private locomotives).
  • For economists and financial analysts — a series of new reports:
    • “Analysis of the wagon processing at stations” (output of incoming and outgoing invoices for each station, calculation of the time spent of wagons at various stages of processing, calculation of the time spent of foreign wagons in the country, taking into account the norms);
    • «Statement of costs for rail transportation»;
    • “Analysis of the automatic distribution of costs” to view and adjust the costs by the logistician in documents in which the system could not automatically determine the wagons and waybills.
  • For railway forwarders:
    • Accounting and operational processing of applications for transportation (automatic linking of actual railway bills to the order, visual monitoring of the dynamics of order fulfillment, linking of UZ costs by wagons, calculation of costs per ton of cargo);
    • Formation of an invoice for forwarding services and an act of fulfilled work on the basis of an order;
    • Calculation of income, profit,% profitability of transportation orders;
    • Reports:
      • Profitability of transportation orders with the allocation of costs by categories (for rental wagons, UZ, and other);
      • Analysis of the implementation of freight orders.

The project of automation of accounting for freight forwarding services was implemented on time and in accordance with the wishes and requirements for the system agreed by the parties in the specification of work.

The implementation period is 6 months.

The start date for the commercial operation of software products is June 01, 2018.