A Critical Conversation on Railway Shipper Relations Railways

A Critical Conversation on Railway & Shipper Relations Railways in Multiple Supply Chains Phil C. Ireland Consultant Jexi Inc. Cell: 403 -991 -3186 Email: phil. ireland@shaw. ca ca. linkedin. com/in/philcireland

Seeing the complete picture matters… Up close you see… …Step back and you see Clouds. . . …Mist From Niagara Falls. 2

Seeing the complete picture matters… Up close you see… …Step back and you see Endless Dots. . . …Modern Art! 3

Seeing the complete picture matters… Up close you see… …Step back and you see A critical route for a customer …One link in the network 4

Key Message Rail networks are very complex and their operations are fragile – require a continuous flow approach to maintain stability – all stakeholders need to embrace the “big picture” 5

Core Railway Design Principals Velocity – faster transits and additional capacity Balance – to drive service reliability Network – addressing total book of business 6

Continuous Flow Adhering to 3 critical principles creates Continuous Flow 1. Pulling to Demand Link production directly with ability to exit demand – not ability to enter demand 2. Harmonizing Cycle Time Create “conveyor belts” so that every segment of the production line runs at the same speed 3. Establishing Takt Time Establish a regular “heartbeat” to production flow to balance and level all network resources 7

Network Planning The Plan starts with shippers’ needs TRAFFIC Intimate understanding of every car/container move BLOCK A packet of cars grouped on common characteristics Corridors Yards/Terminals • • • Locomotives Crews Compounds TRIP PLAN Executable shipment instructions TRAIN One or more blocks grouped together • • Locomotives Crews Work-blocks Inspections/ Fuelling Fleets • Rail cars Resource Plan Deliver the Book of Business 8

Metrics Pyramid Many factors need to be carefully managed to create balance and ensure we hit the “sweet spot” Outputs of the design process On-time performance Key Operating Measures 2 nd __RTM__ GTM measurement level 1 st RTM’s measurement level Key design parameters # Handlings # Block Swaps Trip plan compliance Fleet size: cars Car velocity Locomotive Productivity Yard crews & assignments GTM’s Trip time Yard Capabilities Volumes (Demand) Fleet size: locos Car miles Train Schedules ___GTM___ Train miles Train Crews Train miles Train length Optimized in the design process Train starts Train weight HP/ton 9

“The Bullwhip Effect” Shipping Line Port Operator Rail Line Capacity Car Fleet Corridor Balance Causes: Solutions: • • Over-reaction to Backlogs Order batching Demand forecast inaccuracy Resource delays impacting capacity Shipment Flow Disciplined, slight corrections Focus on resource balancing Stay within capacities Collaborative channel management 10

Reality of the Challenges 11

Elements of the Supply Chain Vessel Port Rail Inland Terminal Railcar supply to meet import demand All supply chain participants need to work together to dampen “oscillations” in the network 12

Supply Chain Coordination Implement strategies that level and balance demand on the network Entry to Network Exit From Network Seasonality Visibility tools and process Optimized terminal and vessel interfaces Actively mitigate peaks and valleys Improved customer-rail interfaces Right product, right time, right place Pre-planning and notification Sales strategies Optimized handling and resource allocation Multi-modal planning Better capacity, asset & labour utilization 13

Key Message Rail networks are very complex and their operations are fragile – require a continuous flow approach to maintain stability – all stakeholders need to embrace the “big picture” 14

Thank You! Railways in Multiple Supply Chains Phil C. Ireland Consultant Jexi Inc. Cell: 403 -991 -3186 Email: phil. ireland@shaw. ca ca. linkedin. com/in/philcireland