Supply Chain Collaboration - Van Horne Institute
Supply Chain Collaboration - Van Horne Institute
Supply Chain Collaboration - Van Horne Institute
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Valuable RetailIndustry KnowledgeStrong StrategicPartnershipsEfficient DistributionModelsEdmontonOur 21,000mile networkreaches 75% ofNorth America’spopulationOnly CN canoffer railconnectionto 3 coastsBusiness UnitsShare of CNRevenuesIntermodal 19%Grain and Fertilizers 17%Petroleum and Chemicals 16%Forest Products 14%Metals and Minerals 10%Coal 7%Automotive 6%Other Revenues 11%Note: Based on 2010 RevenuesA Unique Transportation Company
OperationalExcellenceServiceExcellenceGatewayInvestments<strong>Supply</strong> <strong>Chain</strong>ThinkingOur Strategic Agenda at CN
<strong>Supply</strong> <strong>Chain</strong> Mindset is Critical
Silos don’tworkAverages aremeaninglessFinger-pointingis uselessEnd-to-end iswhat mattersHow Our Customers Look at Things
Ports Prince Rupert <strong>Van</strong>couver Montreal HalifaxPort FrameworkAgreement Terminal OperatorService LevelAgreement (SLAs) Daily scorecard 2/3 DailyConference Call Vessel Data Sharing(EDI Transfer) 1/3 <strong>Supply</strong> <strong>Chain</strong> Agreements with Ports/Terminals
CN Carloads(thousands)Growth in West Coast GrainCN Units(thousands)Growth in Overseas ShippingCN Carloads(thousands)Growth in Coal ExportsEmerging Success Stories
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20082009ICWCGLT/BCRailMKNRLWRSOXSavageCFQ &EJ&EEDIwebMethodsWWW.CN.CAePricingCSC Multi-Mediai2COMPASSFAST -SiebelInterlinePricingWEBPricingA+BRevenueForecastingNLUFLS/ExecPortaleWorkplaceEPSEPS ALLEmployee /Manager PortalInterlineSettlementsPhase 1• Finance• Accounting• <strong>Supply</strong>ManagementPhase 2• HR/Payroll• TimeReporting• ProjectsPhase 3• Mechanical• Engineering• Risk Mgmt.• Police• MedicalPhase 4• WC• Vouchers• FuelManagementChargeable ServicesOptimization• GLT & BCRail• Technology• BusinessWarehouse• SAP UpgradePartnership• PrecisionEngineering• Joint Facility• Freight Claims• LogisticsCar HireSAP Roadmap• TISDeployment• Non-FreightOpt• BW WFM• Railcar AssetManagement• BulkManagementEMSTR Roadmap• LMS• Order-to-Invoice• Invoice-to-Cash• CrewManagementHPCSAEIOperating Plan - Product CatalogRTC / RTC2Wayside HealthNetworkSMART YardOASISTruck DispatchIntermodalGateIMXGATE to PADIMX RetailData WarehouseDataCitynPowerNetezzaETL Data StageIT Enables Innovation
PipelineOnRailLow Cost, Low Risk Market AccessRail Does Not Preclude Pipe
12We’re getting better at being green
1313Significant environmental benefits
Total corridor fuel consumption = US gallon/ton5.2 gallons4.9 gallons• Canadian Rockies passage offersthe lowest grade• Rupert has the smallest above sealevel elevation• CN elevation route to Chicagogenerates the smallest fuelconsumption and carbon footprint6.6 gallons6.0 gallonsSource: Independent Study from ICF InternationalWhere you climb the Rockies becomes relevant
LowidlingThrottlecontrolDynamicbrakesNew enginetechnologiesRail / flangelubricationAutomaticstart / stopdevicesDistributedPowerBetter trains = Reduced CO 215
Lighterfreight carsWelded /harder railLong sidingRaillubricationSmart switchheatersFocus on efficiency = Less switching = Reduced CO 216
• CN’s Safety Management System• A journey that requirescontinuing effort• New hires, a key focus area• Recent safety survey shows areasof strength and opportunity• ‘Stay the course’ onrules compliance• Continue to strengthen CN’sSafety CultureWith an Unwavering Commitment to Safety
• Canada’s world class inland infrastructure is a point ofdifferentiation for Canadian importers and exporters• Efficient supply chains create a competitive advantage forCanadian businesses competing in the global markets• A deeper level of trust is imperative in order to support acollaborative approach to managing end-to-end supply chains• Measurement and feedback are key to executing end-to-endwith an eye on continuous sustainable improvementIn Summary