Here is an overview of how operators can reimagine these processes:
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Rolling Stock Procurement. Procurement teams should consider the requirements of the spare parts supply chain when ordering new train cars. To facilitate spare parts planning, the organization needs a digital twin of each train car. This virtual representation contains all information about the train&#;s condition as well as standard parts lists, such as the bill of materials for the entire car and each planned maintenance event. To enable the rail operator to create a digital twin, rolling-stock suppliers must provide the relevant data in the right format. Building a standard interface to suppliers can simplify this process and ensure that up-to-date information is available. Teams from the supply chain and maintenance functions should be highly involved in the procurement process.
Demand Planning. The digital twin provides the fact base for advanced and predictive planning, which is a fundamental shift in mindset for most organizations. Instead of basing the demand forecast entirely on historical orders and experience, planners consider the train&#;s condition and mileage.
The idea is very simple. Imagine having only one train. To create an accurate forecast for spare-parts demand, you would take three steps:
With the forecast in hand, you would check which maintenance center is available and send the parts directly there so that they are waiting when the train arrives.
Inventory Planning and Ordering and Scheduling. The planning you can do for one train, you can also do for thousands&#;thanks to digitization. Digital tools, accurate master data, and active condition monitoring make it possible. To capture the opportunities, it is critical to seamlessly connect or even integrate the planning department into fleet operations and maintenance. Teams can use artificial intelligence to assist in forecasting safety stock requirements, thereby reducing inventory levels.
Effective planning also requires a clustering of parts to differentiate mission-critical parts that require higher stocks from low-value parts and consumables. An accurate classification of parts is essential to avoid higher costs or service delays. Ultimately, inventory levels should reflect the operator&#;s selected tradeoff between working capital and part availability.
Accurate planning enables supply chain organizations to set up automatic spare-parts orders with suppliers. For consumables, organizations should consider using a Kanban-like process in which parts are automatically reordered when supplies drop to a specified level. Other options for consumables include using vendor-managed inventory or storing parts in the maintenance shop.
Some rail operators are testing the use of a &#;technical support and spares supply agreement&#; (TSSSA) with train manufacturers. The operator outsources spare-parts handling to the manufacturer, which agrees to supply the necessary parts within a specified time frame that varies based on a part&#;s criticality. A TSSSA&#;s success depends on the manufacturer&#;s ability to meet its service-level commitment.
Supplier Management and Delivery and Logistics. A digital supply chain control tower should monitor deliveries closely. This allows teams to systematically track supplier performance and trace material supply chains in real time. The control tower should also analyze and mitigate risks. Risk mitigation includes establishing secondary sources for most critical parts and using fully automated warranty claims in response to delays and defects. To reduce complexity and increase negotiating leverage, organizations should consider obtaining quotes for part bundles rather than individual parts. To actively manage suppliers and plan inventories, an operator needs full transparency on inventory levels.
Maintenance. The maintenance department should use digital tools to support cross-functional planning efforts, so that required materials are available on time and in the desired quality. Maintenance staff can also use digital tools to access up-to-date information, such as for scheduling and parts availability. In addition, it&#;s possible to use documentation that multiple parties can update in real time, such as for recording defects and status assessments.
To lead the transformation of the spare-parts supply chain organization, rail operators need a dedicated team that includes representatives of relevant departments and business divisions. The team should conduct a rapid assessment to analyze pain points and performance gaps; it can then develop an ambitious target picture for the organization five years in the future. These steps provide the basis for designing initiatives to transition from the current state to the target picture. Each initiative needs a clear roadmap and accountabilities.
Prioritizing the initiatives is essential for successful implementation. Some no-regret moves, such as master data cleaning, can start right away. There may also be quick wins, such as reducing inventories and optimizing procurement (for example, parts bundling), that can fund the journey. Next, the organization can begin the main transformation program by introducing a new planning process and taking supporting actions, such as establishing a digital supply chain control tower.
To enable the transformation, the organization needs to break down silos so that maintenance, planning, procurement, logistics, and fleet operations can work hand in hand. Each function has an important role in the integrated effort. Maintenance workers need to create documentation that specifies each part they mount onto a train, thereby establishing feedback loops between actual demand and planning. Procurement can use advanced planning to obtain lower prices through fixed order quantities&#;but it must give planners accurate data, such as a digital bill of materials.
Logistics should provide maintenance operators with appropriately packed material kits for each maintenance event and should even premount some parts in the warehouse. Fleet operations should ensure the accuracy of digital twins and provide planning teams with updated information to reflect significant mileage changes; such efforts will be rewarded with much more reliable maintenance times.
Along with being efficient and effective, the spare parts supply chain also needs to be sustainable to realize the promise of climate-friendly rail transportation. This includes obtaining CO2-neutrality certifications from suppliers, optimizing logistics, and reducing waste through optimized inventories.
A state-of-the-art supply chain for spare parts allows rail operators to tap into the hidden potential of their fleet by reducing maintenance time, enhancing train availability, and cutting costs. Success requires using advanced analytics for demand planning, balancing efficiency and resilience in inventories, improving supplier management, ensuring accurate and complete master data, and establishing cross-functional connections. Such a transformation might seem like a huge undertaking&#;but it is essential to meet public expectations for a rail sector that is both cost-effective and sustainable.
Four fundamental questions about shipping by rail, all answered in one place
Rail is a safe, economical and environmentally responsible way to ship goods. If you want to learn the basics of how to ship freight by rail, here's the what, where, how and why of it.
If you&#;ve never shipped by rail, it may seem like a mystery &#; or even out of reach. But rail is actually a viable solution for many shippers, offering a safe, environmentally responsible and economical way to ship large amounts of goods.
To clear things up, let&#;s answer the first four questions most people have about rail &#; the what, where, how and why of it all &#; so you can turn the mystery into an advantage. Don't miss the video at the end!
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You can ship just about anything by rail except personal property, passengers, pets or other living things.
You can ship just about anything by rail. In fact, it&#;s probably easier to cover what you can&#;t ship first. It&#;s a short list: personal property, passengers, pets and other living things.
What you can ship is a much, much longer list: Think raw materials to finished goods and everything in between. Here are just a few examples:
The short answer: If you have large quantities of goods to ship, you can probably move them by rail.
Rail lines span North America.
You can ship products by rail pretty much anywhere in North America. Between the major railroads that operate in Canada, the United States and Mexico and smaller railroads in between, railroad tracks span the continent. Factor in ocean carriers and you can use rail to ship to virtually any destination worldwide.
Class I Railroads are the companies that operate the major rail lines &#; if you compared it to U.S. roadways, their tracks would be the interstates of the rail network. The United States has five Class I Railroads. While each company owns its own network of tracks, they do interchange traffic with each other, which means you can ship coast to coast, even if it involves more than one railroad. These railroads also interchange traffic with railroads in Canada and Mexico, giving you access across the borders, too.
Short line railroads operate in more localized areas. Although they have &#;shorter lines&#; than Class I Railroads, they provide important connections in areas where the big players don&#;t have tracks.
If you import or export products, rail is still an option. Railroads have access to ports, allowing products to be shipped to and from global markets.
The short answer: Anywhere in North America, whether coast-to-coast or across the border.
Intermodal shipping and transloading allow products to move seamlessly between trucks and trains and back again.
If you don&#;t have tracks where you&#;re shipping from or to, there are still ways to connect to rail. Two processes &#; intermodal shipping and transloading &#; allow products to move seamlessly between trucks and trains and back again.
Let&#;s say the facility from which you&#;re shipping isn&#;t rail served. Trucks can pick up your products, deliver them to a transload facility or intermodal ramp, then transfer them to a train. If the destination doesn&#;t have tracks, either, your products can be transferred back to trucks for final delivery.
Shippers use intermodal shipping and transloading so they can take advantage of the economic benefits of shipping by rail. By combining shipping modes, you get the flexibility of over-the-road trucking and the affordability of long-haul rail shipping, all without an investment in tracks.
The short answer: Thanks to transloading and intermodal shipping, products can be transferred between trucks and trains, which means neither the origin nor destination needs to have tracks.
Rail is a safe, economical and environmentally responsible way to ship a large amount of goods.
Why do people seek out rail? In short, it offers some major advantages:
What benefits do these features offer shippers?
The short answer: Rail offers a safe, green and economical way to ship a large amount of goods.
Answer a few quick questions and we&#;ll connect you with a shipping expert who can help you take advantage of rail.
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