Rail Track, Trace & Intervention Case Study - Tank Cars

Business Problem

  • Lack of intervention on full fleet cycle for 2800 tank cars.
  • Customers holding railcars too long.
  • Low fleet utilization and high levels of forward-deployed inventory.

Objectives – Improve Fleet Utilization

  • Reducing loaded and empty transit time.
  • Reducing destination dwell time.

Process

  • Establish baseline fleet performance prior to implementation.
  • Track, trace, and expedite entire fleet throughout the cycle, loaded and empty.
  • Provide Vendor Managed Inventory (VMI) services to key customers to facilitate management of railcar deployment at their facilities.

Results

  • Average loaded transit time reduced from 8.36 to 7.42 days (0.96 day reduction).
  • Average empty transit time reduced from 10.48 to 9.12 days (1.36 day reduction).
  • Average destination dwell reduced from 8.5 days to 5 days (3.5 day improvement).
  • Average cycle time improved by 5.8 days.
  • 50% inventory reduction at key customers.

Total Savings Identified: $3MM

Please contact us today to see how we can help you more effectively manage your inventory and reduce your transportation costs.

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