Rail Car Fulfillment Article

August 28, 2015 Charity Newsome

Elemica Highlighted by SupplyChainBrain

GA_Trend_LogoGary Neights, Director of Product Management, is featured on SupplyChainBrain. An excerpt of the article, “Best Practices in Use of Railcar Fulfillment Systems”, is included here:

This increased focus on rail is putting a strain on railway systems, causing shippers to become more efficient with how they use the transportation systems they have. Another issue in bulk logistics and distribution deals with the general cost of maintaining a railcar. Companies don’t want to own railcars because of the expense, so they rent them instead. The cost for a new railcar can be in the six figures, while monthly rentals for a liquid railcar ranges has risen from $500 to $1500 to $2000 per liquid railcar, according the Wall Street Journal article, “Railcar Shortage in U.S. Pushes Up Lease Rates.”

The article explains that, “During the 2008 recession and its aftermath, car owners scrapped thousands of cars after customers decided not to renew leases. When demand picked up recently, car owners were short-handed.” Therefore, companies need to ensure their railcars are fully utilized. Automated systems are the best way to optimize rail car management. However, many bulk distributors traditionally manage their logistics processes manually, using spreadsheets. This can lead to an increase in administrative headcount and hours, along with an increase in errors, as humans make mistakes. A common challenge when emailing spreadsheets is...

To read the full article, click here.

 

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