Rail shipping is one of the most effective modes of transportation for North American freight; yet, it, like all freight shipping methods, requires analysis of rail freight data to plan, execute, monitor, and optimize. Though this data analysis can be accomplished through manual methods, the better way is by using a Rail Transportation Management System (Rail TMS). These systems, like Rail Command® from RSI Logistics, are designed to optimize every aspect of your rail freight, from scheduling and tracking to billing and reporting. However, perhaps most importantly, a Rail TMS optimizes data: both the receiving and merging of data, as well as your research into the insights provided by the data.
In this blog we’ll look at how data is built into the foundation of a Rail TMS, some ways you can overcome common challenges with the data in the system, and an example of an RSI Logistics client who found success with their data through Rail Command. In whatever way rail plays a part in your supply chain, understanding how data and a Rail TMS can transform your operations is part of finding efficiency and operations.
The Role of Rail Freight Data in a Rail TMS
Shipping freight by rail generates an immense volume and variety of rail freight data. Entire fleets worth of equipment generates records from lease expiration dates to maintenance records. Building a pattern for a shipment involves shipping parties, commodities, routing, and more; all of which is data that is vital to your records. Rail rates generate information on tariffs, rates, contracts, expirations, and beyond.
These are just a few examples of how data is generated throughout the process of shipping rail, and there are many similar examples. Harnessing this data and being able to utilize it is vital; without using the data as a foundation for decision making, optimization, or results verification, the burden falls on manual methods. These methods can be dangerous, as they are much more prone to mistakes, errors, and incorrect judgements.
This is where a Rail TMS comes in.
Imagine overseeing the renewals of numerous equipment leases. Traditionally, this could involve manually building and updating a calendar – an inefficient and possibly error-prone process.
However, by using a Rail TMS like Rail Command, all that information is automatically collected and a renewal calendar is generated based on your specific equipment’s renewal and expiration dates. This method not only saves you time but also reduces the risk of making an error that could prove costly. With accurate, real-time information at your fingertips, you’re better equipped to make informed decisions.
Core Functions of Rail Freight Data in a Rail TMS
A Rail TMS optimizes your logistics from the ground up and provides friendly, comprehensive data insights throughout each step. Though there are many phases, stages, and functions of rail logistics within a Rail TMS, for our purposes in this blog we’ll roughly separate them into four phases: Planning, Execution, Monitoring, and Optimization.
Planning Phase
This initial stage is where the process of setting up a rail shipment, or planning logistics for your supply chain, takes place. This phase involves vast amounts of data and details related to rail rates, shipment patterns, equipment details, maintenance schedules, and much more.
What sets a Rail TMS apart from other methods of managing rail logistics is its ability to connect all these data points within a single system. This ensures planning without manual oversight and reducing manual input of data.
Since there is so much data involved in planning your rail supply chain, having it be automated and within one system, rather than scattered across various other systems, saves you a significant amount of time and money.
Execution Phase
Execution refers to the process of carrying out the rail shipping transportation plans you developed in the previous phase. Most of this revolves around shipment execution but can also overlap with the management of your active railcars and shipments, as well as the following phase, monitoring.
Much like planning, a Rail TMS utilizes your data by uploading and storing all planned details, which can then be utilized in some reporting and saved as a digital record of shipments. This automated documentation is essential for record keeping purposes and helps in the optimization phase, where you can use these records to improve costs and reduce charges.
Monitoring Phase
With sophisticated tools like Car Location Messages (CLM) and Global Positioning Systems (GPS), a Rail TMS offers monitoring capabilities in one system. However, monitoring goes beyond just visibility into shipments; it can also include Estimated Time of Arrivals, exception logs, diversion requests, and more.
Solutions like Rail Command offer visibility into all of these aspects and more. Furthermore, this information is then made available for analysis through automated methods. For instance, Rail Command features a summary of data visualizations for bad orders (a railcar deemed unsafe to continue moving due to mechanical issues), including history of year-over-year, bad orders by reason and railroad, location and sighting destination, and more.
Optimization Phase
Perhaps the most powerful feature of a Rail TMS is its ability to empower optimization of your operations through your rail freight data. It compiles your data from the above three phases and beyond into user-friendly formats, offering deep dives into everything from dwell to fleet turns, shipment volume to on-time performance, and much more as well. These data visualizations support your strategic decision-making, uncovering opportunities to save both time and money.
In managing large data sets, a Rail TMS shines by not merely handling but actively parsing and utilizing data for effective rail supply chain management. This capability ensures rail professionals at all levels can make informed decisions based on comprehensive analysis and insights.
Overcoming Common Rail Challenges with Rail Freight Data and a Rail TMS
Rail shipping, while efficient, comes with its set of challenges that can disrupt your supply chain and inflate operational costs, such as rail rate management, problematic railcars, and demurrage management. Leveraging a Rail TMS equipped with the right data sets, like Rail Command, can be a game-changer in not just overcoming these challenges, but finding ways to optimize effectively. The four phases we just examined don’t always take place in the order we examined them; for instance, optimization can occur throughout any stage of rail logistics. Using a tool like Rail Command you can improve many aspects of your operations.
Below are three examples of challenges that can be overcome with a Rail TMS and rail freight data.
Rail Rate Management
Managing rail rates manually can be a challenging and potentially error-prone process. Traditionally, tracking contracts, tariffs, and fuel charges involves a substantial amount of paperwork and manual data entry. This method not only consumes valuable time but also increases the risk of costly mistakes. Missed updates on tariff changes or expiring rates can lead to unexpected fees and operational inefficiencies.
However, a Rail TMS like Rail Command overcomes the challenge of rail rate management by automating most of these processes. Our solution notifies you of pending rate expirations, ensuring that you’re always ahead of changes and can act promptly to renegotiate or adjust plans. Additionally, with automatic updates for tariff changes and fuel surcharges, your team no longer needs to manually input this information. Plus, an integrated automated Fuel Surcharge (FSC) calculator adjusts rates based on current patterns, providing accurate and timely data that helps in making informed financial decisions.
Problematic Railcars
Staying up to date with the precise location and status of your shipments is crucial. Traditionally, this would mean manually checking each individual railroad’s website for your railcars, a tedious process that can significantly delay access to vital information. This manual method not only strains resources but can also result in missed opportunities to proactively address issues, potentially impacting your customer relationships due to slow responses and delayed shipments.
Solving this challenge with rail freight data in a Rail TMS is comprehensive and proactive. A Rail TMS like Rail Command offers automated exception reporting of railcar tracking data, continuous updates through visibility feeds, and the capability to track diversions as they happen. These features dramatically change how you monitor and manage your shipments. Instead of sifting through multiple platforms to gather data, a Rail TMS provides a unified view, making it much easier to identify and troubleshoot jeopardized shipments swiftly.
Demurrage Management
One of the persistent issues you may face in rail logistics is the looming threat of demurrage charges. This penalty, resulting from railcars being detained beyond a specified period of time for loading and unloading, can quickly escalate and hurt your bottom line. Manually tracking the “free time” of each railcar requires constant work and can be fraught with errors, as the task involves painstakingly following each car’s movements and calculating the potential charges, a process that is not only time-consuming but also leaves room for human error.
Fortunately, with a Rail TMS like Rail Command, you can automate the calculation of demurrage charges. Should a railcar exceed its allotted free time, the system can automatically generate invoice-ready reports. Furthermore, you can input your own demurrage rules into the system and visualize the data via demurrage data visualizations.
Case Study: Rail Freight Data Management with a Rail TMS
As we’ve seen, traditional methods of managing rail freight data often rely on manual efforts, which often lead to inefficiencies, particularly a loss of time. As we’ve also examined, a major aspect of a Rail TMS is taking all that data and putting it into one comprehensive system where it can speak to itself as well as be automated to save on time and potential errors.
The Challenge of Our Client
A client of RSI Logistics was encountering this very challenge with manual data entry and management. Their existing system was based on these manual processes and led to time-consuming processes and potential inconsistencies due to human error. Furthermore, their data didn’t talk to each other, making finding insights a manual and unreliable process. They spent hours a week just managing the data and studying it.
This client needed to improve their data management and efficiency, as well as overcome past unsuccessful attempts to develop a reliable system.
The Solution We Provided
Rail Command, our Rail TMS, solved the client’s challenge. By plugging their rail shipping logistics and rail freight data into Rail Command, they were able to bring their data together into one system that made everything comprehensive. The dashboards in Rail Command enabled smooth data integration across multiple systems and provided valuable data visualizations.
By incorporating real-time updates, manual entry was eliminated, and the interactive customization features allowed clients to adjust the interface to their specific needs. Furthermore, one-click automated reporting capabilities ensured accurate reports.
Rail Freight Data Takeaways
Using a Rail TMS to manage rail freight data significantly streamlines data management and drives operational efficiency. This enables you to make confident, data-driven decisions.
- Streamlined Data Management: This dashboard excels in refining data management processes and a user-friendly interface that results in direct operational efficiencies.
- Improved Data Accuracy: By automating data entry and reporting, the margin for error shrinks considerably.
- Cost Efficiency: Tailoring the solution to meet specific needs directly from the get-go avoids the additional costs and time associated with re-developing or tweaking ill-fitting solutions.
Shifting from manual data processes to a Rail TMS solution’s automated, comprehensive approach to data means embracing efficiency, accuracy, and a competitive edge in rail logistics. The transformation is significant: easier data management, clearer insights, and more confident decision-making.
For you, the dedicated rail professionals, the move to a data-driven approach is a crucial step in mastering your operations and leading the industry forward. As rail shipping experts guiding fellow experts, we recognize the power of these tools not only streamline your workflow but also pioneer new industry standards.
Together, as we harness the potential of cutting-edge Rail TMS features, we’re not just keeping up with the times—we’re driving the future of rail logistics.
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