Terminal of the Future: how railroad management software can save you millions of dollars

Business as usual for Class I railroads just won’t cut it anymore.

It will lead to a managed decline and a further loss of market share to trucking – and the clock is ticking.

Yet, there’s a real opportunity for rail to improve efficiency, cut millions in costs, and achieve meaningful growth in one fell swoop.

Of course, this sounds too good to be true at first – but it’s no exaggeration. The secret is high-caliber systems design and software engineering.

Here, we’ll show you why building future-proof railroad management software is so important and how it can help you cut costs.

Let’s dive in!

The problem facing rail – Frankenstein systems and ancient software

It’s no secret that railroads have a growth problem – the byzantine, patchwork systems and outdated software they use are a major reason why.

They make expanding market share in lanes with the highest growth potential almost impossible.

Rail already holds 39% of the US addressable long-haul intermodal market, so it’s unlikely it will be a source of real growth going forward.

That’s why the biggest opportunity is in intermodal lanes of 250 to 750 miles, where railroads currently only hold an 11% market share.

source: Oliver Wyman

Here, rail intermodal could potentially replace 27 million out of 41 million truckloads just by using existing terminals and networks.

But, this is easier said than done.

These lanes are the most challenging to address and to grow volumes in this market, railroads need to improve service quality and deliver a first-rate customer experience.

And that’s impossible with Frankenstein systems and ancient software.

Let’s zoom in for a minute here.

A typical, large terminal handles thousands of containers every day. Unfortunately, the reality of many terminals is that only one person is in charge of manually tracking each container.

source: FreightWaves

The same person charged with tracking containers is often in charge of tracking chassis numbers, too – numbers that can be scratched off, graffitied over, or just faded with time.

So, a small issue like a mistyped container or chassis number leads to unnecessary delays. 

That’s just the tip of the iceberg. Equipment inefficiencies, poor data integration, and outdated load planning also cause bottlenecks on a daily basis.

Now, multiply that across every terminal – the amount of work hours lost every day to completely avoidable problems and inefficient processes is staggering.

It wastes your most valuable resource, time.

And time is money, after all. But, with a state-of-the-art software solution, you can cut your costs by $100 million+ in just one year.

That’s no joke – we’ll show you how to do it next.

The answer – high-caliber systems design and software engineering

Class I railroads have to manage dozens of terminals, thousands of locomotives, and tens of thousands of freight cars moving millions of tons of goods every single day.

So, a cutting-edge software solution that efficiently manages key aspects of one of the most complex industries in the world might sound like a pipe dream.

But, it’s not a dream. You just need to choose the right partners to make it happen.

Our partners at Oliver Wyman have seen every inefficiency in the book, from disorganized terminals to ancient, patchwork software systems that aren’t fit for purpose anymore.

So, how do we solve these problems? The answer is simple – with high-caliber systems design and software engineering focused on building user-centered solutions.

Here’s a snapshot of what we can do:

• Trains and tracks – Designing advanced tracking and reporting technologies for real-time visibility into cargo, train locations, and maintenance status.
• Cranes and lifts – Optimizing operational efficiency and reducing downtime through predictive maintenance tools.
• Inventory management – Implementing advanced tracking systems using RFID and GPS to precisely track each container and its location.
• Chassis management – Using real-time GPS tracking systems and IoT sensors to accurately monitor chassis location and condition.
• Loading and unloading – Automating the scheduling and tracking of containers with advanced logistics platforms to prevent bottlenecks and improve throughput.
• Driver experience – Building a unified, integrated system that automates check-in and check-out at terminals to reduce wait times and delays.

Top-tier systems design is crucial, especially for highly complex railroad management software solutions. You need it if you’re serious about digital transformation.

That’s because you need more than just a few lines of code, you need a whole software system that can integrate multiple applications into a cohesive, long-term solution.

And the key to getting there is master planning.

What most people don’t know is that you have to have an incredible innate sense for how to cut through all the fog to find the lighthouse and shape an entire program around extreme clarity. Once you find this clarity, the structure follows, and there isn’t as much “wrangling” needed as you may have thought at the outset. The secret of any successful program really does lie in master planning.

Munawar Ahmed, Senior Partner at Oliver Wyman

Effective master planning will give you a rock-solid foundation and help you avoid future issues and bottlenecks.

And we’re serious about this. 

The systems designers will talk to as many stakeholders as possible, from C-suite executives to workers deep in the trenches, to really nail both your vision and requirements.

Another important element we pay close attention to is information architecture (IA). It should be logical, intuitive, and easy to understand.

Imagine if training new hires on your systems took days instead of weeks or months – that’s the power of modern, clean IA.

Also, we work with a cross-functional team of experts from the start.

This ensures the solutions we design are technically feasible and have clear, well-defined requirements.

And the result?

The software engineers building the system will actually understand what they’re building and will get their work done faster.

Next, let’s talk about how we set up a team that’s capable of delivering a complex project like this.

How we set up our team

Turning the design and requirements of your new systems into working software is a mammoth task.

And building them is just the first step – they need to be perfectly implemented, too.

As great as your in-house team might be, they’ll likely need extra hands to get the job done on time and within budget.

Of course, they have unmatched experience and deep domain expertise. But, even the best teams need a hand sometimes.

Now, of course cost is your main concern. But, hiring the cheapest engineers on the market isn’t actually the cheapest option.

Their sloppy, low-quality work can completely derail your project and it will cost you a lot more in the long run.

Instead, we will build a team that actually has the chops to build these complex systems and brings additional value to the project.

Here’s what sets our teams apart:

• Work ethic and cultural compatibility – They can deliver the project on time and within budget and will “get” your company’s culture.
• Transparent and accurate communication – Every member of their team is available at all times and fully dedicated to your project, just like an in-house team.
• Flexibility and proactivity – They can adjust quickly when necessary and stay ahead of the curve by proactively addressing issues.

The team we set up will complement your in-house team’s deep domain knowledge with out-of-the-box, innovative thinking. 

And that’s something you can’t find in the bargain bin.

Next steps

You’ll be in capable hands with our partners at Oliver Wyman and our team of high-caliber software engineers.

Munawar Ahmed, Oliver Wyman’s Head of Systems Design, has improved processes at giants like Verizon over the span of her multiple decade-long career. 

And here at DECODE, we’ll ensure your new and improved systems are perfectly implemented.

If that sounds good to you, feel free to reach out and we’ll get back to you as soon as possible.