Delivering Better Network Visibility, Demurrage Management
By partnering with Watco Rail Logistics, the customer gained a strategic partner with the expertise needed to manage a highly complex rail network.
One of the largest confectionery and snack food companies in North America relies heavily on a dependable inbound transportation network to support continuous production and distribution operations. The company depends on efficient rail operations to maintain uninterrupted product flow throughout its supply chain.
CHALLENGE
Several employees had transitioned into logistics and supply chain positions with limited experience managing rail transportation networks and private railcar assets. Operational challenges included:
- Limited visibility into inbound rail shipments
- Difficulty understanding railroad operations and network constraints
- Limited insight into rail yard congestion and dwell times
- Challenges managing private railcar assets across multiple railroads
- Increased risk of demurrage charges
- Reactive decision-making due to lack of real-time rail data and reporting
Without a centralized view of its rail network, the organization lacked the operational intelligence needed to proactively manage inbound product flow and avoid supply chain disruptions.
SOLUTION
The company partnered with Watco Rail Logistics to serve as an extension of its internal logistics and transportation team. Watco implemented a comprehensive visibility and reporting solution that included:
- Enhanced network visibility. Watco Rail Logistics provided detailed reporting and metrics that gave the customer unprecedented visibility into its rail operations, including:
- Inbound shipment activity by rail yard
- Rail volume flowing from origin locations into destination facilities
- Rail yard congestion trends and capacity concerns
- Dwell time reporting at both origin and destination locations
- Private railcar movement and utilization tracking
- Identification of stalled or delayed shipments within the network
- Proactive demurrage management. Watco Rail Logistics helped the customer identify locations and situations where demurrage exposure was increasing. Through proactive monitoring and reporting, the team provided recommendations on:
- Avoiding railcar congestion
- Improving railcar cycle times
- Reducing unnecessary dwell time
- Managing inbound volumes more effectively
- Preventing avoidable demurrage charges
- Strategic rail expertise. Watco Rail Logistics provided ongoing operational guidance and education to help the customer better understand railroad operations, serving yard dynamics, and network flow patterns.
RESULTS
Key outcomes:
- Improved visibility across the entire rail network
- Enhanced tracking of inbound shipments and railcar assets
- Better understanding of rail yard congestion and capacity constraints
- Reduced risk of demurrage charges
- Faster identification of network bottlenecks and service disruptions
- Improved communication and coordination with suppliers and plant operations
- More informed supply chain and inventory decisions
With improved visibility and actionable rail intelligence, the customer was able to make more proactive business decisions and reduce the likelihood of supply chain disruptions across its manufacturing network. By partnering with Watco Rail Logistics, the customer gained a strategic partner with the expertise needed to manage a highly complex rail network.
Watco Rail Logistics continues to provide operational insight, proactive reporting, and rail expertise that helps the customer maintain supply chain continuity and improve overall network performance.